WABCO Europe BVBA
Apr 30, 2008

WABCO Reports Q1 2008 Results; Sets Another Quarterly Sales and Net Income Record; Raises Full-Year Projections

-- Record quarterly sales of $705 million, up 26 percent over
prior year; up 12 percent in local currencies; all organic
growth

-- U.S. GAAP operating margin of 11.9 percent, an expansion of 65
basis points over prior year; performance operating margin of
13.0 percent, an expansion of 157 basis points over prior year
in local currencies

-- Quarterly diluted EPS of $0.91 on U.S. GAAP basis; diluted EPS
of $1.04 on performance basis, up 55 percent over prior year

-- Raising full-year 2008 projections; U.S. GAAP diluted EPS
range raised to $3.56 - $3.71; performance diluted EPS range
raised to $3.91 - $4.05, an increase of $0.18

BRUSSELS, Belgium, Apr 30, 2008 (BUSINESS WIRE) -- WABCO Holdings Inc. (NYSE: WBC) today reported record Q1 2008 sales of $705 million, up 26 percent over prior year and up 12 percent in local currencies, continuing the Company's long track record of quarterly growth.

"These results again demonstrate our continued ability to outperform the global commercial vehicle market," said Jacques Esculier, WABCO Chief Executive Officer. "We outpaced the industry performance in all regions of the world, led by our 36 percent growth in Asia. Commercial vehicle production in Europe, our largest market, grew by 10 percent while our sales increased by 12 percent. Even in North America this quarter, where the market contracted by 27 percent, we succeeded in containing our sales decline to 14 percent."

WABCO reported Q1 2008 operating income of $83.7 million, up 34 percent over prior year on a U.S. GAAP basis. Performance operating income, which excludes separation and streamlining costs, rose to $91.5 million, up 44 percent over prior year; up 27 percent in local currencies.

WABCO's U.S. GAAP operating margin in Q1 2008 increased to 11.9 percent, expanding 65 basis points over prior year. Performance operating margin increased to 13.0 percent, expanding 157 basis points over prior year in local currencies.

"Our WABCO Operating System, one of the industry's most advanced management environments, continues to strengthen our income performance through operational improvements in efficiency and quality across our value chain. It defines our path to continuously improve every aspect of our business, as we pursue global expansion powered by our passion for growth," said Esculier.

On a U.S. GAAP basis, Q1 2008 net income increased by 53 percent to $61.3 million or $0.91 cents per diluted share from $40.1 million or $0.58 cents per diluted share a year ago. On a performance basis that excludes separation costs, operational streamlining expenses, and one-time and discrete tax items, Q1 2008 net income increased by 52 percent to $70.3 million or $1.04 per diluted share versus $46.4 million or $0.67 cents per diluted share a year ago.

WABCO generated $50.9 million in net cash from operating activities in Q1 2008 and $33.0 million of free cash flow, which was affected by a separation-related tax liability of $11.2 million that was paid in the quarter. Continuing its share buy-back program announced on August 1, 2007, the Company repurchased approximately 700,000 shares for $31.9 million in open market transactions in Q1 2008 and paid $4.7 million in dividends.

Q1 2008 Highlights

In Q1 2008, WABCO started delivery of transmission automation systems for the second generation powershift used in new Mercedes-Benz Actros trucks.

WABCO signed an agreement with China National Heavy Truck Company (CNHTC) in Q1 2008 to supply clutch control systems beginning in 2009. Also in Q1 2008, the company was awarded a vacuum pump contract for diesel applications by a U.S. customer starting in 2010.

In February 2008, WABCO introduced OnGuard(TM), a breakthrough technology and the world's first collision mitigation system with active braking for commercial vehicles. OnGuard is targeted to be available in Q3 2008 as a factory-installed option at several original equipment manufacturers.

WABCO's factory in Qingdao, China received the highest grade for quality and processes by one of our major European customers in Q1 2008, distinguishing WABCO as this customer's first A-rated supplier in China.

During Q1 2008, WABCO commenced extension of its existing test track located near Hanover, Germany. The extension will increase WABCO's capabilities to conduct development testing on sophisticated vehicle stability control systems. "We anticipate that the European Union will mandate Electronic Stability Control (ESC) technology starting in 2010, contributing further to road safety," said Dr. Christian Wiehen, WABCO Vice President, Product Development. "WABCO pioneered ESC for commercial vehicles in 2001 and we have driven ESC innovation ever since."

As part of its worldwide partnership with customers to develop and validate their products ahead of market introduction, WABCO has two other proprietary test tracks. One is located at the Arctic Circle in Rovaniemi, Finland where Company engineers and technicians completed approximately 1,300 person-days of extreme-condition winter tests in Q1 2008. The other test track is located near Chennai, India and owned by WABCO-TVS (India) Ltd.

Updated Full-Year 2008 Projections

Raising its full-year 2008 projections, WABCO expects sales growth between 9 and 12 percent, in local currencies, for the year, up 1 percent from its previous guidance. WABCO has also raised its full-year U.S. GAAP and performance diluted EPS projections. The revised range for U.S. GAAP diluted EPS is $3.56 to $3.71; the revised range for performance diluted EPS is $3.91 to $4.05, up $0.18. EPS on a performance basis excludes separation costs, operational streamlining expenses, and one-time and discrete tax items.

"With outstanding progress in the first quarter and markets continuing to remain strong, we are confident in our raised projections for the full year," said Esculier.

Conference Call

WABCO CEO Jacques Esculier and CFO Ulrich Michel will discuss WABCO's results and outlook on a conference call at 8 a.m. EDT today. It will be webcast at www.wabco-auto.com where the press release and financial information will be available under "WABCO Q1 2008 Results." The call is also accessible by telephone. Dial-in number is +1 719 325 4866 and U.S. toll-free dial-in number is 877 397 0300.

A replay of the call will be available from 11:00 a.m. EDT on April 30 until midnight EDT May 6, 2008. Replay dial-in number is +1 719 457 0820 and U.S. toll-free dial-in number is 888 203 1112. Pass code is 9574002.

About WABCO

WABCO Vehicle Control Systems is one of the world's leading providers of electronic braking, stability, suspension and transmission automation systems for heavy duty commercial vehicles. Customers include the world's leading commercial truck, trailer, and bus manufacturers. Founded in the U.S. in 1869 as Westinghouse Air Brake Company, WABCO was acquired by American Standard in 1968 and spun off in 2007. Headquartered in Brussels, Belgium, WABCO employs more than 7,700 people in 31 countries worldwide. In 2007, WABCO's total sales were $2.4 billion. WABCO is a publicly traded company and is listed on the New York Stock Exchange with the stock symbol WBC. Website: www.wabco-auto.com

Forward-Looking Statements

Comments in this document contain certain forward-looking statements, which are based on management's good faith expectations and beliefs concerning future developments. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the risks and uncertainties described in the "Risk Factors" section and the "Forward Looking Statements" section of WABCO's Form 10-K, as well as in the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements" section of WABCO's Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on Company estimates.

Non-GAAP Financial Measures

To facilitate understanding of Q1 2008 results, several tables follow this news release. Sales excluding the effects of foreign exchange are a non-GAAP financial measure. Additionally, operating income, net income and net income per diluted share on a "performance basis" are non-GAAP financial measures that exclude separation costs, operational streamlining expenses, and one-time and discrete tax items, as applicable. Lastly, "free cash flow" presents our net cash provided by operating activities less net cash used in investing activities. These measures should be considered in addition to, not as a substitute for, GAAP measures. Management believes that presenting these non-GAAP measures is useful to shareholders because it enhances their understanding of how management assesses the operating performance of the Company's business. Certain non-GAAP measures may be used, in part, to determine incentive compensation for current employees.

                         WABCO HOLDINGS INC.
                   Consolidated Statement of Income

                                           Three Months Ended Mar. 31,

                                               2008          2007
                                           ---------------------------
(Amounts in millions, except share data)    (Unaudited)   (Unaudited)
Sales                                       $     705.4   $     558.8
Cost of sales                                     509.4         406.1
                                           ------------- -------------
Gross profit                                      196.0         152.7
Cost and expenses:
  Selling and administrative expenses              83.0          68.7
  Product engineering expenses                     24.3          21.3
  Other operating expense, net                      5.0             -
                                           ------------- -------------
Operating income                                   83.7          62.7

  Equity (income) of unconsolidated joint
   ventures                                        (0.6)         (4.8)
  Other non-operating expense, net                  2.6           4.1
  Interest (income)/expense, net                   (0.6)          2.4
                                           ------------- -------------
Income before income taxes                         82.3          61.0

Income taxes                                       21.0          20.9
                                           ------------- -------------
Net income                                  $      61.3   $      40.1
                                           ============= =============


Net income per common share
  Basic                                     $      0.92

  Diluted                                   $      0.91


Pro-forma net income per common share
  Basic                                                   $      0.59

  Diluted                                                 $      0.58


Common shares outstanding
  Basic                                      66,456,232
  Diluted                                    67,481,001

Pro-forma common shares outstanding
  Basic                                                    67,867,159
  Diluted                                                  69,696,428

                         WABCO HOLDINGS INC.
                 Condensed Consolidated Balance Sheet

                                               March 31,  December 31,
(Amounts in millions)                            2008         2007
                                              ----------- ------------
ASSETS                                        (Unaudited)
Current assets:
        Cash and cash equivalents                $  226.9     $  183.2
        Accounts receivable, less allowance
         for doubtful accounts: $7.0 in 2008;
         $6.4 in 2007                               531.7        464.6
        Inventories                                 212.4        177.4
        Future income tax benefits                    7.9          8.0
        Other current assets                         57.6         54.2
                                              ----------- ------------
        Total current assets                      1,036.5        887.4

Facilities, less accumulated depreciation           356.6        336.2
Goodwill                                            403.7        376.8
Capitalized software costs, net of
 accumulated amortization: $133.4 in 2008;
 $129.1 in 2007                                      34.3         35.1
Long-term future income tax benefits                 40.8         40.7
Investments in unconsolidated joint ventures         82.8         83.0
Other assets                                         36.6         35.0
                                              ----------- ------------
Total Assets                                     $1,991.3     $1,794.2
                                              =========== ============

LIABILITIES AND SHAREHOLDERS' EQUITY/OWNER'S
 NET INVESTMENT
Current liabilities:
        Loans payable to banks                   $    6.2     $   10.2
        Accounts payable                            199.9        193.5
        Accrued payroll                             107.5        100.1
        Current portion of warranties                56.9         49.7
        Taxes on income                              26.0         12.8
        Indemnification liabilities                  23.4         26.4
        Other accrued liabilities                   119.6         91.6
                                              ----------- ------------
        Total current liabilities                   539.5        484.3

Long-term debt                                      146.0        116.0
Post-retirement benefits                            355.2        334.1
Deferred tax liabilities                             25.6         25.6
Minority interests                                   13.7         13.5
Long-term indemnification liabilities                54.5         55.6
Long-term income tax liabilities                    103.1         95.6
Other liabilities                                    64.1         61.9
                                              ----------- ------------
Total Liabilities                                 1,301.7      1,186.6

Total Shareholders' Equity                          689.6        607.6
                                              ----------- ------------
Total Liabilities & Shareholders' Equity         $1,991.3     $1,794.2
                                              =========== ============

                         WABCO HOLDINGS INC.
                 Consolidated Statement of Cash Flows
                             (Unaudited)

                                          Three Months Ended March 31,
                                          ----------------------------
(Amounts in millions)                         2008            2007
                                          ------------    ------------


Operating activities:
    Net income                              $    61.3      $     40.1
    Adjustments to reconcile net income to
     net cash provided by operating
     activities:
        Depreciation                             18.0            14.4
        Amortization of capitalized
         software and other intangibles           7.1             7.6
        Equity in earnings of
         unconsolidated joint ventures,
         net of dividends received                0.3            (0.5)
        Non-cash stock compensation               1.7             0.7
        Loss on disposal of facilities            0.1             0.4
    Changes in assets and liabilities:
        Accounts receivable                     (38.0)          (35.7)
        Inventories                             (22.8)          (16.7)
        Accounts payable                         (6.2)           26.6
        Other accrued liabilities and
         taxes                                   30.8             3.4
        Post-retirement benefits                 (0.9)           (2.4)
        Other current and long-term assets       (2.8)          (19.2)
        Other long-term liabilities               2.3            35.4

                                          ------------    ------------
Net cash provided by operating activities        50.9            54.1
                                          ------------    ------------

Investing activities:
    Purchases of property, plant and
     equipment                                  (16.7)          (10.1)
    Investments in capitalized software          (1.2)           (2.2)

                                          ------------    ------------
Net cash used in investing activities           (17.9)          (12.3)
                                          ------------    ------------

Financing activities:
    Borrowings of long-term debt                 30.0           114.5
    Repayments of long-term debt                    -          (108.6)
    Net repayments of short-term debt            (4.8)           (5.5)
    Purchases of treasury stock                 (27.9)              -
    Dividend payments                            (4.7)              -
    Proceeds from exercise of stock
     options                                      5.4               -
    Net change in balance due from/to
     Trane or Trane affiliated entities             -           (45.7)

                                          ------------    ------------
Net cash used in financing activities:           (2.0)          (45.3)
                                          ------------    ------------

Effect of exchange rate changes on cash
 and cash equivalents                            12.7             0.3
                                          ------------    ------------

Net increase/(decrease) in cash and cash
 equivalents                                     43.7            (3.2)
Cash and cash equivalents at beginning of
 period                                         183.2            34.8
                                          ------------    ------------
Cash and cash equivalents at end of period  $   226.9      $     31.6
                                          ============    ============

                         WABCO HOLDINGS INC.
  Reconciliation of GAAP Reported Financial Measures to Performance
                          Financial Measures
                             (Unaudited)

                                   Quarter Ended Mar 31,

(Amounts in millions,
 except per share
 data)                 2008   % of Sales/  2007  % of Sales/ % Chg vs.
                               Adj Sales          Adj Sales    2007
                      ------- ----------- ------ ----------- ---------
Sales
---------------------
Reported              $705.4              $558.8                 26.2%
  Foreign exchange
   translation
   effects             (79.8)                  -
                      -------             ------
Adjusted Sales        $625.6              $558.8                 12.0%
                      =======             ======

Operating Income
 Reported             $ 83.7        11.9% $ 62.7       11.2%     33.5%
---------------------
  Streamlining costs     1.2                 0.9
  Separation costs       6.6                   -
                      -------             ------
Performance Operating
 Income               $ 91.5        13.0%   63.6       11.4%     43.9%

  Foreign exchange
   translational
   effects             (10.5)                  -
                      -------             ------
Adjusted Operating
 Income               $ 81.0        12.9% $ 63.6       11.4%     27.4%
                      =======             ======

Net Income
---------------------
Reported              $ 61.3              $ 40.1                 52.9%
  Streamlining costs,
   net of tax            1.1                 0.6
  Tax items              2.0                 5.7
  Separation costs,
   net of tax and
   separation related
   taxes                 5.9                   -
                      -------             ------
Performance Net
 Income               $ 70.3              $ 46.4                 51.5%

Performance Net
 Income per Diluted
 Common Share         $ 1.04              $ 0.67                 55.2%

Common shares
 outstanding -
 diluted                67.5

Pro-forma common
 shares outstanding -
 diluted                                    69.7


----------------------------------------------------------------------
Note: The presentation of the performance measures above are not in
 conformity with generally accepted accounting principles (GAAP).
 These measures may not be comparable to similar measures of other
 companies as not all companies calculate these measures in the same
 manner.
----------------------------------------------------------------------

                         WABCO HOLDINGS INC.
                 Reconciliation of Net Cash Provided
              By Operating Activities to Free Cash Flow
                             (Unaudited)

(Amounts in millions)                       Three Months Ended Mar 31,
                                            --------------------------
                                               2008            2007
                                            ----------      ----------

Net Cash Provided by Operating Activities     $  50.9         $  54.1

Deductions or Additions to Reconcile to Free
 Cash Flow:
Purchases of property, plant, equipment and
 computer software                              (17.9)          (12.3)
                                            ----------      ----------

Free Cash Flow                                $  33.0         $  41.8
                                            ==========      ==========

Note: This statement reconciles net cash provided by operating
 activities to free cash flow. Management uses free cash flow, which
 is not defined by US GAAP, to measure the Company's operating
 performance. Free cash flow is also one of several measures used to
 determine incentive compensation for certain employees.

                         WABCO HOLDINGS INC.
Reconciliation of Projected US GAAP EBIT and EPS to Performance EBIT
                                and EPS
                    for Full Year 2008 Projections
                             (Unaudited)

(1 EURO = 1.47 USD)

(Amounts in millions, except per share    Original         Revised
 data)
                                            2008            2008

EBIT (Earnings Before Interest and
 Taxes)
---------------------------------------

Projected US GAAP EBIT                 $315.5 - $327.5 $318.5 - $330.5
     Streamlining costs                           10.0             9.0
     Separation costs                             10.5            11.5
                                       --------------- ---------------
Performance EBIT (Earnings Before
 Interest and Taxes)                   $336.0 - $348.0 $339.0 - $351.0
                                       =============== ===============


Net Income
---------------------------------------

Projected US GAAP Net Income           $230.3 - $240.3 $237.5 - $246.8
   Streamlining costs, net of tax                  6.5             7.2
   Tax items                                       3.3             5.0
   Separation costs, net of tax and
    separation related taxes                       8.0            10.7
                                       --------------- ---------------
Performance Net Income                 $248.1 - $258.1 $260.4 - $269.7
                                       =============== ===============

Performance Net Income per Diluted
 Common Share                            $3.73 - $3.87   $3.91 - $4.05

Projected diluted common shares
 outstanding                                      66.6            66.6

----------------------------------------------------------------------
Note:  The presentation of the performance measures above are not in
 conformity with generally accepted accounting principles (GAAP).
 These measures may not be comparable to similar measures of other
 companies as not all companies calculate these measures in the same
 manner.
----------------------------------------------------------------------

SOURCE: WABCO Holdings Inc.

Media, Investors and Financial Analysts:
WABCO Holdings Inc.
Mike Thompson, +32-2-663-9854
mike.thompson@wabco-auto.com
or
Jason Campbell, +1-732-369-7477
jason.campbell@wabco-auto.com

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