Wabco Operating Income Climbs 35% in 2Q
Commercial vehicle supplier Wabco Holdings reported second-quarter operating income of $146.5 million, up 35% from $108.4 million in the same period a year ago. Earnings per share rose to $1.95, up 21% from $1.61.
Revenue for Brussels-based Wabco totaled $1 billion, up nearly 21% from $795 million in second-quarter 2017.
Wabco highlights in the quarter include a deal to supply its hydraulic-power steering system to Tata Motors in India for the vehicle maker’s new heavy-duty trucks. The agreement builds on Wabco’s September 2017 purchase of R.H. Sheppard, a U.S.-based supplier of steering systems.
Wabco signed a multiyear deal with Hyundai Motor Co. to supply its Maxx single-piston air disc brake technology for the South Korean automaker’s new medium-duty trucks starting in August 2019.
In June, Wabco extended its agreement to supply its automated manual transmission control technology to an unidentified European original equipment manufacturer. Wabco reported the deal was worth more than $500 million. Under the 10-year agreement, Wabco will develop and introduce the next-generation AMT control unit that will allow for new technology to be integrated into the OEM’s global truck and bus products.
Wabco also launched its Traxee fleet management system for small- and medium-size commercial fleets. Traxee will be marketed in Europe, the Middle East and Turkey. The company also extended an agreement to supply its air compressor technology to a Europe-based global manufacturer of trucks and buses. The deal is worth more than $100 million.
