In January 2013, WABCO announced that it has won contracts to provide anti-lock braking systems (ABS) to 6 of Brazil's leading trailer manufacturers. Together, these companies supply around 45 percent of the new trailers manufactured in Brazil, the single largest market in South America. As of January 2013, new ABS legislation took effect in Brazil to further increase vehicle and road safety.
The Meritor WABCO joint venture in North America said in January 2013 that it has been named the standard position steer-axle service brake-chamber supplier for all Daimler Trucks North America air brake vehicles. WABCO's service brake-chambers allow reduced cost of ownership and increased payload capacity.
Also in January 2013, Meritor WABCO said that Schneider National has ordered more than 2,500 units of its OnGuard collision safety system as standard equipment for its new class 8 trucks. Schneider National operates one of the leading truckload, intermodal and transport fleets in North America. OnGuard is the first collision mitigation system introduced in North America, and as of December 2012, nearly 30,000 OnGuard systems have been sold there.
In January 2013, WABCO reported that it has been honored with 9 awards for superior performance in 2012 by 7 of China's leading commercial vehicle manufacturers, including Baotou Bei Ben Heavy Duty Truck, Beiqi Foton Motor, FAW Jeifang Automotive and China National Heavy Duty Truck Group.
Meritor WABCO reported in Q4 2012 that it received the prestigious 2012 Platinum Supplier Award from Wabash National for excellence in supply chain performance, delivery, quality, cost effectiveness and innovation. Wabash National is a leading trailer manufacturer in North America. Meritor WABCO is the only supplier to win this award for five consecutive years.
In Q4 2012, WABCO INDIA sold approximately 2,500 retrofit anti-lock braking system (ABS) kits to India's largest public sector oil companies: Indian Oil Corporation, Hindustan Petroleum Corporation and Castrol contracted trucks.
Full Year 2013 Guidance
Based on our current best estimates of future market conditions, WABCO's guidance for 2013 indicates sales growth to range between 2 and 7 percent in local currencies for 2013, performance operating margin to range from 12.3 to 13.3 percent, and operating margin on a U.S. GAAP basis to range from 11.7 to 12.7 percent, resulting in diluted earnings per share on a performance basis to range from $4.30 to $4.80.
Taking into account an anticipated release in Q4 2013 of an estimated $200 million valuation allowance associated with the tax benefit on net operating loss carry-forwards partially offset by streamlining and separation related expenses throughout the year, diluted earnings per share are estimated to range from $7.26 to $7.76 on a U.S. GAAP basis.
WABCO expects in 2013 to convert between 80 and 90 percent of its net income attributable to the company into free cash flow, excluding payments associated with streamlining and separation activities.
"2012 was another year in which WABCO demonstrated differentiation through its performance as a global leader in the commercial vehicle industry," said Esculier. "Although we are facing prevailing market uncertainty in 2013, we remain confident in our ability to continue to deliver outstanding value for WABCO's shareowners. As we stay fully focused on driving outperformance through increasing the adoption of WABCO technologies globally, we will maintain our flexibility to efficiently respond to market conditions."
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