During Q4 2012, WABCO generated $76.3 million in net cash from operating activities, resulting in free cash flow of $43.1 million. Excluding payments of $5.8 million for streamlining and separation activities, free cash flow was $48.9 million for the quarter.
"Consistent with many previous quarters, WABCO's Operating System, one of our industry's most advanced management environments, continued to yield high levels of productivity in Q4 2012," said Esculier. "In total, we generated $16.3 million of materials and conversion productivity for the quarter as we efficiently flexed capacity to address changes in market demand, with gross materials productivity at 5.4 percent of total materials cost, and we delivered conversion productivity at 5.9 percent."
For full year 2012, WABCO reported sales of $2,477.4 million, down 4.8 percent in local currencies from a year ago and down 11.3 percent in U.S. dollars, reflecting the industry's downturn in key markets.
"While global truck and bus production declined 10 percent year on year, WABCO stayed on course and outperformed the market for yet another year," said Esculier. "For full year 2012, WABCO also increased global aftermarket sales by 5 percent, reaching a new record for annual aftermarket revenues on a currency adjusted basis."
WABCO reported full year 2012 performance operating income of $335.6 million versus $375.1 million a year ago, and operating income was $324.5 million on a U.S. GAAP basis versus $369.9 million a year ago. Full year 2012 performance operating margin was 13.5 percent, up from 13.4 percent a year ago, and operating margin was 13.1 percent on a U.S. GAAP basis, down from 13.2 percent a year ago.
"For full year 2012, WABCO's operating margin of 13.5 percent on a performance basis delivered another year of record profitability, further demonstrating WABCO's ability to anticipate and respond to the sudden industry downturn," said Esculier.
WABCO reported full year 2012 performance net income attributable to the company of $291.6 million or $4.46 per diluted share versus $325.7 million or $4.73 per diluted share a year ago, and full year 2012 U.S. GAAP net income attributable to the company of $302.0 million or $4.62 per diluted share versus $357.0 million or $5.19 per diluted share a year ago.
"Throughout 2012, WABCO's Operating System powered us toward new productivity records and enabled our fast and flexible responses to significant market changes quarter after quarter," said Esculier. "In total, it delivered $66.6 million of materials and conversion productivity, resulting in an all-time record. Gross materials productivity in 2012 represented 5.3 percent of total materials cost. We also delivered another record for conversion productivity in 2012, reaching 6.2 percent for the year."
WABCO generated $358.3 million in net cash from operating activities during full year 2012, resulting in free cash flow of $257.8 million. Excluding payments of $16.5 million for streamlining and separation activities, free cash flow was $274.3 million, which is a conversion rate of 94 percent of performance net income attributable to the company during full year 2012.
Since June 2011, WABCO has repurchased 7,051,349 shares for $379.4 million in open market transactions as of December 31, 2012. As previously disclosed, WABCO is authorized to repurchase up to $420.6 million of additional shares through December 31, 2014.
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