WABCO Europe BVBA
Jul 30, 2009

WABCO Reports Q2 2009 Results, Delivers Outstanding Cash Flow Despite Continued Severe Slump in Industry; Updates 2009 Operating Framework

BRUSSELS, BELGIUM, Jul 30, 2009 (MARKETWIRE via COMTEX News Network) -- WABCO Holdings Inc. (NYSE: WBC), a global technology leader and tier-one supplier to the commercial vehicle industry, today reported that Q2 2009 sales totaled $316 million, down 59 percent from prior year and down 53 percent in local currencies due to the unprecedented continued severe slump in global demand for new commercial vehicles.

"As emerging markets such as China, Brazil and India are expanding their share of WABCO's total revenue, our strategy of investing in global expansion is proving to be increasingly powerful. As of Q2 2009, our second largest customer worldwide is China National Heavy Truck Corporation (CNHTC), the largest producer of heavy duty trucks in China," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "On June 3, 2009, we took majority control of WABCO-TVS in India, the leader in its market, further strengthening WABCO's capabilities to connect with and grow in the world's emerging markets."

"Emerging markets have been hit less hard by the industry's current downturn and are likely faster to recover, further powering WABCO's future growth. The European market suffers from both depressed demand for new commercial vehicles as well as a decline of around 15 percent in production due to inventory sell-off by original equipment manufacturers. Market conditions in the United States are weak but we expect these conditions to recover soon on a growth path," said Esculier.

WABCO reported a Q2 2009 gross profit margin of 21.4 percent versus 27.5 percent a year ago. Excluding separation and streamlining costs, performance gross profit margin was 22.6 percent versus 27.5 percent a year ago.

WABCO reported a Q2 2009 operating loss of $7.6 million versus operating income of $84.4 million a year ago. Performance operating income was a loss of $5.5 million, down from operating income of $93.2 million in prior year.

WABCO reported Q2 2009 Earnings Before Interest and Taxes (EBIT) at a loss of $15.3 million, down from $85.0 million of income a year ago. Performance EBIT loss was $1.6 million, down from $93.7 million of income a year ago.

"Even as the global commercial vehicle industry is facing its worst downturn in history, and despite the company's sales decline of 53 percent in local currencies versus a year ago, WABCO almost reached break-even at the operational level in Q2 2009, showing our powerful ability to perform," said Esculier. "Our achievements in Q2 2009 demonstrate that WABCO continues to move quickly to mitigate adverse market conditions while also making outstanding progress on our strategy of excellence in execution, global expansion and technology leadership."

"In Q2 2009, we achieved cost savings of $33 million in operating expenses, resulting in a reduction of approximately 25 percent year on year. Our WABCO Operating System also delivered $10.9 million of materials and conversion productivity, with materials productivity representing 5.4 percent of total materials cost and close to a record level, despite an unusually severe sourcing environment. As another mark of excellence in execution, in Q2 2009, we achieved zero defective parts-per-million on a greater number of production lines than ever before, which contributed to an overall improvement in quality," said Esculier.

On a U.S. GAAP basis, Q2 2009 reported a net loss of $17.4 million or $0.27 per diluted share versus net income of $67.0 million or $1.00 per diluted share a year ago. Excluding separation and streamlining costs, the one-time impact from the Indian joint venture transactions, and discrete and other one-time tax items, Q2 2009 resulted in a performance net loss of $4.7 million or $0.07 per diluted share versus performance net income of $75.5 million or $1.13 per diluted share a year ago.

WABCO generated $61.1 million in net cash from operating activities in Q2 2009 and $43.4 million of free cash flow.

"After three consecutive quarters in deeply depressed market conditions, we continue to generate strong operating cash flow, with $61.1 million in Q2 2009, further indicating WABCO's ability to execute efficiently and with maximum flexibility as we tightly manage working capital by reducing inventories and improving accounts receivable, among other measures," said Esculier.

"Despite the current global economic slump, WABCO continues to make outstanding strategic achievements, which we highlight as examples of our passion to rise to new challenges," said Esculier.

Recent Highlights

On July 15, 2009, WABCO announced that its new ESCsmart system is now approved for use in all 27 countries in the European Union and in 20 other countries worldwide where electronic stability control (ESC) for commercial vehicles is applied in accordance with the United Nations Economic Commission for Europe's Regulation 13 for braking. WABCO's ESCsmart system is the industry's most efficient method to certify ESC for trucks and buses. It is the industry's first technology that uses computational simulation to homologate ESC systems, avoiding the traditional approach to ESC homologation, which requires original equipment manufacturers to physically test all variants of vehicles. It substantially increases flexibility and saves significant time and labor for truck and bus makers.

On July 7, 2009, WABCO announced that the company was awarded a major contract to supply anti-lock braking systems (ABS) to KAMAZ, the largest manufacturer of commercial vehicles in the Russian Federation. In addition, KAMAZ has contracted WABCO to supply air disc brakes and actuators for their commercial vehicles.

WABCO disclosed in June 2009 that a new report by The Smart Cube, a global independent research firm, has identified WABCO as one of the five strongest and most financially stable companies in the U.S. automotive parts industry. Facing its most difficult operating environment in history, the automotive parts industry provides an opportunity for a few suppliers to emerge leaner, stronger, more financially stable and more competitive than ever before, according to The Smart Cube's analysis of financial metrics of 98 companies that are domiciled and publicly listed in the United States.

On June 3, 2009, WABCO reported that the company executed its previously announced plan to take majority control of award-winning WABCO-TVS (India) Ltd.

On May 22, 2009, WABCO's factory in Qingdao, China, was awarded "Enterprise of the Year 2008" for its outstanding contribution to economic development by the Qingdao Municipal Government, further strengthening WABCO's reputation as a brand of reference in China.

WABCO announced in Q2 2009 that the company has been awarded a contract by a major original equipment manufacturer in Europe to supply EcoSmart systems to equip their heavy duty truck engines for series production starting in 2011. WABCO's EcoSmart system is a breakthrough in air compression technology for trucks and buses that substantially improves fuel efficiency and reduces emissions. The EcoSmart clutch compressor optimally disengages a truck or bus compressor from the engine when the vehicle's air system reaches full pressure.

In Q2 2009, the company's joint venture in North America, Meritor WABCO, was awarded new business from Crete Carrier, one of North America's largest trucking companies. Crete Carrier placed orders for 2,000 trucks equipped with SmartTrac stability control systems and OnGuard collision mitigation systems for delivery in 2009. Crete Carrier had purchased 390 OnGuard units in 2008 and reportable accidents significantly decreased compared with vehicles operating without such units. OnGuard is the only collision mitigation system available in North America.

As of Q2 2009, the Meritor WABCO PAN 22 Air Disc Brake is available for trailers through Hendrickson, the leader in North America for trailer suspensions. Combining best-in-class braking torque output with low weight and long pad life, Meritor WABCO's PAN 22 Air Disc Brake is expected to become available through other trailer suspension and axle manufacturers in North America.

As reported in Q2 2009, WABCO extended its technology leadership in electronic braking systems (EBS) for trailers by introducing two breakthrough technologies to enhance the performance of EBS on extra long trailers and truck-trailer combinations with two or more trailers. WABCO's new Controller Area Network (CAN) Repeater and Router are the industry's first application of high-speed data transmission using CAN in-vehicle communications to improve braking performance of trailers.

Also in Q2 2009, WABCO announced several breakthrough features in its Intelligent Trailer Program, further enhancing electronic braking and air suspension functionalities through new OptiLoad, OptiTurn, Tilt Alert and Bounce Control, all of which increase vehicle performance while enabling safer operation, more efficient loading and unloading, and more cost efficient maintenance.

Full Year 2009 Operating Framework

Due to continued uncertainties associated with market forecasts for commercial vehicles, WABCO is presently not providing full year 2009 earnings guidance. Based on market developments, the company has updated its operating framework for 2009 to include an estimated decline in 2009 sales of 35 to 40 percent in local currencies, resulting in a full year reported operating margin of negative 3.2 percent or better, including streamlining and separation related costs, and a positive operating margin on a performance basis. The company also expects to generate strongly positive free cash flow, excluding streamlining and separation related costs.

WABCO has also notified works councils that the company intends to terminate 300 additional positions in Germany.

"WABCO continues to anticipate and mitigate adverse market conditions without compromising our commitment to excellence in execution, global expansion and technology leadership," said Esculier. "We anticipated this economic crisis nearly a year ago, and now more than ever, we feel confident about adapting and executing what is necessary in the short term while preserving and powering the global capabilities and growth potential of WABCO."

Conference Call

WABCO Chairman and CEO Jacques Esculier and Vice President and Controller Todd Weinblatt will discuss WABCO's results and outlook on a conference call at 9 a.m. Eastern Time today. It will be webcast at www.wabco-auto.com/investor-relations where the press release and financial information will be available under "WABCO Q2 2009 Results."

The call is also accessible by telephone in listen only mode. Dial-in number is +1 719 457 2732 and U.S. toll-free dial-in number is 888 337 8168.

A replay of the call will be available from 12:00 Noon Eastern Time on July 30 until midnight August 5, 2009. Replay dial-in number is +1 719 457 0820 and U.S. toll-free dial-in number is 888 203 1112. Pass code is 8504255.

About WABCO

WABCO Vehicle Control Systems (NYSE: WBC) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world's leading commercial truck, trailer, and bus manufacturers. With sales of $2.6 billion in 2008, WABCO is headquartered in Brussels, Belgium. For more information, visit 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 the understanding of Q2 2009 results, several tables follow this news release. EBIT and sales excluding the effects of foreign exchange are non-GAAP financial measures. Additionally, operating income, operating income margin, EBIT, net income and net income per diluted share on a "performance basis" are non-GAAP financial measures that exclude separation and streamlining costs, one-time impact from the Indian joint venture transactions, and discrete and other one-time tax items, as applicable. Lastly, free cash flow presents our net cash provided by operating activities less net cash used for purchases of property, plant, equipment, and computer software. 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 Statements of Income
                              Three Months Ended       Six Months Ended
                                   June 30,                 June 30,
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
(Amounts in millions,       (Unaudited) (Unaudited) (Unaudited) (Unaudited)
 except share data)
Sales                       $    316.0  $    772.9  $    649.9  $  1,478.3
Cost of sales                    248.5       560.6       524.2     1,070.0
                            ----------  ----------  ----------  ----------
Gross profit                      67.5       212.3       125.7       408.3
Cost and expenses:
  Selling and administrative
   expenses                       61.0        97.9       130.0       180.9
  Product engineering
   expenses                       20.1        27.2        37.9        51.5
  Other operating
   (income)/expense, net          (6.0)        2.8        (4.6)        7.9
                            ----------  ----------  ----------  ----------
Operating (loss)/income           (7.6)       84.4       (37.6)      168.0
  Equity income of
   unconsolidated joint
   ventures                       (5.3)       (2.5)       (0.5)       (3.1)
  Other non-operating
   expense, net                    0.5         1.3         1.4         2.7
  Fair value adjustment of
   the noncontrolling
   interest prior to taking
   control                        12.1           -        12.1           -
  Interest income, net            (0.3)       (0.4)       (0.7)       (1.0)
                            ----------  ----------  ----------  ----------
(Loss)/income before income
 taxes                           (14.6)       86.0       (49.9)      169.4
Income taxes                       2.4        18.4         3.0        39.4
                            ----------  ----------  ----------  ----------
Net (loss)/income including
 noncontrolling interest         (17.0)       67.6       (52.9)      130.0
  Less:  Net income
   attributable to
   noncontrolling interest         0.4         0.6         0.8         1.7
                            ----------  ----------  ----------  ----------
Net (loss)/income           $    (17.4) $     67.0  $    (53.7) $    128.3
Net (loss)/income per
 common share
  Basic                     $    (0.27) $     1.02  $    (0.84) $     1.94
  Diluted                   $    (0.27) $     1.00  $    (0.84) $     1.91
Common shares outstanding
  Basic                     64,003,281  65,551,460  63,993,159  66,003,846
  Diluted                   64,003,281  66,683,775  63,993,159  67,051,329
                            WABCO HOLDINGS INC.
                   Condensed Consolidated Balance Sheet
                                                  June 30,    December 31,
(Amounts in millions)                               2009          2008
                                                ------------- -------------
ASSETS                                          (Unaudited)     (Audited)
Current assets:
          Cash and cash equivalents             $       372.6 $       392.8
          Accounts receivable, less allowance
           for doubtful accounts:  $9.5 in
           2009; $6.9 in 2008                           244.7         313.8
          Inventories                                   149.1         162.7
          Tax receivable                                    -          20.0
          Future income tax benefits                      4.3           4.3
          Other current assets                           53.2          54.4
                                                ------------- -------------
          Total current assets                          823.9         948.0
Facilities, less accumulated depreciation               352.3         315.8
Goodwill                                                388.8         360.8
Capitalized software costs, net of accumulated
 amortization: $150.0 in 2009; $145.9 in 2008            24.3          22.7
Long-term future income tax benefits                     29.2          29.1
Investments in unconsolidated joint ventures             11.8          74.0
Other assets                                             40.9          25.6
                                                ------------- -------------
Total Assets                                    $     1,671.2 $     1,776.0
                                                ============= =============
LIABILITIES AND EQUITY
Current liabilities:
          Loans payable to banks                $        25.6 $        76.4
          Accounts payable                              104.1         108.3
          Accrued payroll                                75.9          89.8
          Current portion of warranties                  45.2          54.2
          Taxes payable on income                        25.0             -
          Indemnification liabilities                    25.0          25.2
          Streamlining liabilities                       24.2          15.3
          Other accrued liabilities                      85.2          59.2
                                                ------------- -------------
          Total current liabilities                     410.2         428.4
Long-term debt                                          155.7         173.6
Post-retirement benefits                                316.8         319.9
Deferred tax liabilities                                 25.3          26.6
Long-term indemnification liabilities                    30.7          35.2
Long-term income tax liabilities                         73.8          94.1
Other liabilities                                        67.8          83.3
                                                ------------- -------------
Total Liabilities                                     1,080.3       1,161.1
Total Equity                                            590.9         614.9
                                                ------------- -------------
Total Liabilities & Equity                      $     1,671.2 $     1,776.0
                                                ============= =============
                            WABCO HOLDINGS INC.
                   Consolidated Statement of Cash Flows
                                (Unaudited)
                                                Three Months Ended June 30,
                                                  ------------------------
(Amounts in millions)                                 2009         2008
                                                  -----------  -----------
Operating activities:
          Net (loss)/income                       $     (17.4) $      67.0
          Adjustments to reconcile net
           (loss)/income to net cash
           provided by operating activities:
            Depreciation                                 17.2         18.3
            Amortization of capitalized
             software and other intangibles               6.3          7.2
            Fair value adjustment of the
             noncontrolling interest prior
             to taking control                           12.1            -
            Equity in earnings of
             unconsolidated joint ventures,
             net of dividends received                   (3.4)        (1.7)
            Non-cash stock compensation                   3.0          2.9
            Deferred income taxes                        (1.1)           -
            Loss/(gain) on disposal of
             facilities                                   0.4         (0.8)
            Gain on divestitures                          0.8            -
          Changes in assets and liabilities:
            Accounts receivable                          41.1        (12.4)
            Inventories                                  21.8         11.7
            Accounts payable                             (4.6)         8.6
            Other accrued liabilities and taxes          (8.4)       (13.8)
            Post-retirement benefits                     (3.1)         2.5
            Other current and long-term assets            1.0         (1.1)
            Other long-term liabilities                  (4.6)         2.4
                                                  -----------  -----------
Net cash provided by operating activities                61.1         90.8
                                                  -----------  -----------
Investing activities:
          Purchases of property, plant and
           equipment                                    (13.5)       (16.9)
          Investments in capitalized software            (4.2)        (1.9)
          (Acquisitions) / divestitures, net             (7.4)           -
                                                  -----------  -----------
Net cash used in investing activities                   (25.1)       (18.8)
                                                  -----------  -----------
Financing activities:
          Net (repayments)/borrowings of
           revolving credit facilities                  (21.0)        66.0
          Net borrowings of short-term debt               9.0          0.3
          Purchases of treasury stock                       -        (65.8)
          Dividend payments                                 -         (4.6)
          Proceeds from exercise of stock options           -         12.8
                                                  -----------  -----------
Net cash used in financing activities:                  (12.0)         8.7
                                                  -----------  -----------
Effect of exchange rate changes on cash and cash
 equivalents                                             22.5          2.2
                                                  -----------  -----------
Net increase in cash and cash equivalents                46.5         82.9
Cash and cash equivalents at beginning of period        326.1        226.9
                                                  -----------  -----------
Cash and cash equivalents at end of period        $     372.6  $     309.8
                                                  ===========  ===========
                            WABCO HOLDINGS Inc.
                    Consolidated Statements of Income
Reconciliation of Net Income to Performance Net Income and Performance Net
                      Income per Diluted Common Share
                                (Unaudited)
(Amounts in millions, except per share    Three Months    Six Months Ended
 data)                                    Ended June 30,      June 30,
                                          2009     2008     2009     2008
                                        -------  -------- -------  --------
Net (Loss)/Income                       $ (17.4) $   67.0 $ (53.7) $  128.3
Adjustments:
Streamlining cost, net of tax               5.2       5.1    33.1       6.2
Tax items                                   1.4       0.5     2.2       2.5
Separation costs, net of tax and
 separation related taxes                  (4.3)      2.9    (2.0)      8.8
Impact from India JV Transaction, net
 of tax                                    10.4         -    10.4         -
                                        -------  -------- -------  --------
Performance Net (Loss)/Income           $  (4.7) $   75.5 $ (10.0) $  145.8
                                        =======  ======== =======  ========
Performance Net (Loss)/Income per
 Diluted Common Share                   $ (0.07) $   1.13 $ (0.16) $   2.17
Common Shares Outstanding - Diluted        64.0      66.7    64.0      67.1
Note:  The presentation of performance net income and performance net
income per diluted common share is 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)
                                                             Three Months
(Amounts in millions)                                       Ended June 30,
                                                            --------------
                                                             2009    2008
                                                            ------  ------
Net Cash Provided by Operating Activities                   $ 61.1  $ 90.8
Deductions or Additions to Reconcile to Free Cash Flow:
Purchases of property, plant, equipment and computer
 software                                                    (17.7)  (18.8)
                                                            ------  ------
Free Cash Flow                                              $ 43.4  $ 72.0
                                                            ======  ======
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 the several measures used to determine incentive compensation
for certain employees.
                            WABCO HOLDINGS INC.
                      Q2 2009 Data Supplement Sheet
                                (Unaudited)
                                         Quarter Ended June 30,
                                          % of              % of
(Amounts in millions)            2009   Sales/     2008   Sales/    % Chg
                                          Adj               Adj       vs.
                                         Sales             Sales     2008
                               -------  -------  -------  -------  -------
Sales
Reported                       $ 316.0           $ 772.9             -59.1%
     Foreign exchange
      translational effects       47.0                 -
                               -------           -------
Adjusted Sales                 $ 363.0           $ 772.9             -53.0%
                               =======           =======
Gross Profit
Reported                       $  67.5     21.4% $ 212.3     27.5%   -68.2%
     Streamlining costs            3.6               0.3
     Separation costs              0.3               0.3
                               -------           -------
Performance Gross Profit       $  71.4     22.6% $ 212.9     27.5%   -66.5%
     Foreign exchange
      translational effects       11.0                 -
                               -------           -------
Adjusted Gross Profit          $  82.4     22.7% $ 212.9     27.5%   -61.3%
                               =======           =======
Selling, Administrative,
 Product Engineering Expenses
 and Other
Reported                       $  75.1     23.8% $ 127.9     16.5%   -41.3%
     Streamlining costs           (2.4)             (5.5)
     Separation costs              4.2              (2.7)
                               -------           -------
Performance Selling,
 Administrative, Product
 Engineering Expenses and
 Other                         $  76.9     24.3% $ 119.7     15.5%   -35.8%
     Foreign exchange
      translational effects       10.9                 -
                               -------           -------
Adjusted Selling,
 Administrative, Product
 Engineering Expenses and
 Other                         $  87.8     24.2% $ 119.7     15.5%   -26.6%
                               =======           =======
Operating (Loss)/Income
Reported                       $  (7.6)    -2.4% $  84.4     10.9%  -109.0%
     Streamlining costs            6.0               5.8
     Separation costs             (3.9)              3.0
                               -------           -------
Performance Operating Income   $  (5.5)    -1.7%    93.2     12.1%  -105.9%
     Foreign exchange
      translational effects        0.1                 -
                               -------           -------
Adjusted Operating Income      $  (5.4)    -1.5% $  93.2     12.1%  -105.8%
                               =======           =======
Equity in (Loss)/Income of
 Unconsolidated Joint Ventures
Reported                           5.3           $   2.5
     Foreign exchange
      translational effects        0.7                 -
                               -------           -------
Adjusted Equity in
 (Loss)/Income of
 Unconsolidated Joint Ventures $   6.0           $   2.5
                               =======           =======
EBIT (Earnings Before Interest
 and Taxes)
Reported Net (Loss)/Income     $ (17.4)          $  67.0
     Adjust for taxes              2.4              18.4
     Adjust for interest
      income                      (0.3)             (0.4)
                               -------           -------
EBIT                           $ (15.3)    -4.8% $  85.0     11.0%  -118.0%
     Streamlining costs            6.0               5.8
     Separation costs             (3.9)              2.9
     Impact from India JV
      transaction                 11.6                 -
                               -------           -------
Performance EBIT (Earnings
 Before Interest and Taxes)    $  (1.6)    -0.5% $  93.7     12.1%  -101.7%
     Foreign exchange
      translational effects        0.9                 -
                               -------           -------
Adjusted  EBIT (Earnings
 Before Interest and Taxes)    $  (0.7)    -0.2% $  93.7     12.1%  -100.7%
                               =======           =======
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.
             Six Months Ended June 2009 Data Supplement Sheet
                                (Unaudited)
                                   Six Months Ended June 30,
(Amounts in                       % of                  % of
 millions)             2009       Sales/     2008       Sales/   % Chg vs.
                                Adj Sales             Adj Sales    2008
                     ---------  ---------  ---------  ---------  ---------
Sales
Reported             $   649.9             $ 1,478.3                 -56.0%
   Foreign exchange
    translation
    effects              100.6                     -
                     ---------             ---------
Adjusted Sales       $   750.5             $ 1,478.3                 -49.2%
                     =========             =========
Gross Profit
Reported             $   125.7       19.3% $   408.3       27.6%     -69.2%
   Streamlining
    costs                 25.1                   0.6
   Separation
    costs                  0.6                   0.6
                     ---------             ---------
Performance Gross
 Profit              $   151.4       23.3% $   409.5       27.7%     -63.0%
   Foreign exchange
    translational
    effects               23.4                     -
                     ---------             ---------
Adjusted Gross
 Profit              $   174.8       23.3% $   409.5       27.7%
                     =========             =========
Selling,
 Administrative,
 Product Engineering
 Expenses and Other
Reported             $   163.3       25.1% $   240.3       16.3%     -32.0%
   Streamlining costs    (11.8)                 (6.4)
   Separation costs        2.4                  (9.0)
                     ---------             ---------
Performance Selling,
 Administrative,
 Product Engineering
 Expenses and Other  $   153.9       23.7% $   224.9       15.2%     -31.6%
   Foreign exchange
    translational
    effects               22.5                     -
                     ---------             ---------
Adjusted Selling,
 Administrative,
 Product Engineering
 Expenses and Other  $   176.4       23.5% $   224.9       15.2%     -21.6%
                     =========             =========
Operating Income
Reported             $   (37.6)      -5.8% $   168.0       11.4%    -122.4%
   Streamlining costs     36.9                   7.0
   Separation costs       (1.8)                  9.6
                     ---------             ---------
Performance
 Operating Income    $    (2.5)      -0.4%     184.6       12.5%    -101.4%
   Foreign exchange
    translational
    effects                0.9                     -
                     ---------             ---------
Adjusted Operating
 Income              $    (1.6)      -0.2% $   184.6       12.5%    -100.9%
                     =========             =========
Equity in Income of
 Unconsolidated
 Joint Ventures
Reported             $     0.5             $     3.1
   Foreign exchange
    translational
    effects               (0.1)                    -
                     ---------             ---------
Adjusted Equity in
 Income of
 Unconsolidated
 Joint Ventures      $     0.4             $     3.1                 -87.1%
                     =========             =========
EBIT (Earnings
 Before Interest and
 Taxes)
Reported Net
 (Loss)/Income       $   (53.7)            $   128.3
   Adjust for taxes        3.0                  39.4
   Adjust for interest
    (income)/expense      (0.7)                 (1.0)
                     ---------             ---------
EBIT                 $   (51.4)      -7.9% $   166.7       11.3%    -130.8%
   Streamlining costs     37.0                   7.0
   Separation costs       (1.0)                  9.5
   Impact from India
    JV transaction        11.6                     -
                     ---------             ---------
Performance EBIT
 (Earnings Before
 Interest and Taxes) $    (3.8)      -0.6% $   183.2       12.4%    -102.1%
   Foreign exchange
    translational
    effects                0.5                     -
                     ---------             ---------
Adjusted  EBIT
 (Earnings Before
 Interest and Taxes) $    (3.3)      -0.4% $   183.2       12.4%    -101.8%
                     =========             =========
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 Operating Income Margin to Performance Operating Income
                                Margin for
                    Full Year 2009 Operating Framework
                                (Unaudited)
                                                 Q1 2009         Update
                                                  Twelve         Twelve
                                                  Months         Months
                                                 Ending,        Ending,
                                               December 31,   December 31,
                                                   2009           2009
                                                 (1 Euro =      (1 Euro =
                                                 1.3 USD)       1.36 USD)
                                               ------------  ------------
Operating Income
Reported Operating Income Margin               (1.5%) - 1.5%       > (3.2%)
   Streamlining costs, impact to margin                 3.8%          2.9%
   Separation costs, impact to margin                   0.7%          0.3%
                                               ------------  ------------
Performance Operating Income Margin              3.0% - 6.0%        > 0.0%
                                               ============  ============
Note:  The presentation of performance Operating Income Margin is 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.

Media, investors and financial analysts contact
Mike Thompson
+32 2 663 9854
 mike.thompson@wabco-auto.com

Jason Campbell
+1 732 369 7477
jason.campbell@wabco-auto.com


SOURCE: WABCO

mailto:mike.thompson@wabco-auto.com
mailto:jason.campbell@wabco-auto.com

 

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