WABCO Europe BVBA
Oct 29, 2010

WABCO Reports Q3 2010 Results, Continues Strong Rise in Sales and Profit Amid Industry Recovery; Raises Guidance for 2010

BRUSSELS, BELGIUM, Oct 29, 2010 (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 Q3 2010 sales of $545 million, up 50 percent in local currencies and up 43 percent on a U.S. GAAP basis from a year ago, reflecting an industry recovery that continues to gain globally.

"This quarter is the second in a row for growth in truck and bus production year on year in every region of the world, marking another uptick in the recovery of the commercial vehicle industry. Each region experienced double digit growth, including more than 60 percent in Europe and South America," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "Continuing to show the importance of emerging markets, China, India and Brazil accounted for 66 percent of the world's truck and bus production in the third quarter."

"In the third quarter, we increased sales worldwide by 50 percent in local currencies, continuing to outperform the global market," said Esculier. "In addition to major sales growth from Europe, WABCO further benefited from our well anchored position in fast growing emerging economies such as China, India and Brazil, where we successfully sustain our ability to penetrate applicable markets for new technologies and systems, resulting in higher value of WABCO content per vehicle."

"Also in the third quarter, our aftermarket sales grew by 25 percent year on year in local currencies, resulting in an all-time record quarter of aftermarket revenues," said Esculier. "This outstanding performance indicates increased utilization of fleets while we also benefit from the continued superb execution of our aftermarket growth strategies initiated several years ago."

WABCO reported Q3 2010 performance operating income of $56.4 million, up from $17.0 million a year ago, while operating income was $54.8 million on a U.S. GAAP basis, up from a $3.0 million loss a year ago. This strong increase in performance operating income in Q3 2010 represents an incremental operating margin of 22 percent, excluding the impact from foreign exchange translations.

WABCO reported Q3 2010 performance operating margin of 10.3 percent, up from 4.5 percent a year ago, while operating margin was 10.1 percent on a U.S. GAAP basis, up from a negative 0.8 percent a year ago.

Q3 2010 performance EBIT was $57.3 million, up from $16.4 million a year ago, while reported EBIT was $54.9 million, up from $34.3 million a year ago. As a result, WABCO reported Q3 2010 performance net income of $47.1 million or $0.71 per diluted share versus a performance net income of $12.5 million or $0.19 per diluted share a year ago, and a Q3 2010 U.S. GAAP net income of $44.0 million or $0.66 per diluted share versus net income of $33.8 million or $0.52 per diluted share a year ago.

WABCO used $381.7 million in net cash from operating activities in Q3 2010 which was impacted by three items: the European Commission fine indemnification payment of EUR 326 million ($437.2 million at the date of payment), the effects of $7.5 million from the company's asset securitization program and net payments of $1.5 million associated with streamlining activities. Excluding these three items, Q3 2010 free cash flow on a performance basis totaled $52.4 million, which is a conversion of 119 percent of net income.

"For the third consecutive quarter, our results confirm WABCO's powerful ability to transform market recovery into outstanding profitability," said Esculier. "We continue to leverage last year's exceptional efforts, including our significantly reduced cost structure. This quarter WABCO achieved an incremental gross profit margin of 33 percent, despite continuing severe constraints among many suppliers, and we generated an incremental operating profit margin of 22 percent, resulting in an operating margin above 10 percent."

"WABCO's Operating System, one of our industry's most advanced management environments, remains remarkably flexible to adapt to fast changing markets. It delivered $11.1 million of materials and conversion productivity in Q3 2010, with materials productivity representing 2.7 percent of total materials cost, reflecting significantly higher prices, as anticipated, due to commodity inflation," said Esculier. "In Q3 2010 we generated 5.7 percent of conversion productivity, matching our highest ever quarterly level. This result is a superlative achievement, particularly during a period of high growth."

"Based on our strong results so far this year, along with a continuing positive outlook on market developments, we have raised WABCO's previously announced full year 2010 guidance," said Esculier.

Recent Highlights

On October 27, 2010, WABCO conducted live demonstrations of its new breakthrough OnGuardPLUS technology, an advanced emergency braking system (AEBS), at Technology Day 2010 in Brussels organized by the European Association of Automotive Suppliers. Available from 2012 for trucks and buses worldwide, OnGuardPLUS is the commercial vehicle industry's first system in compliance with the European Union's expected regulation to make AEBS mandatory on new heavy commercial vehicles from November 2013. Last month, WABCO presented its new breakthrough OnGuardPLUS technology at IAA Commercial Vehicles 2010, one of the industry's most comprehensive trade shows.

Also in October 2010, WABCO announced that its TrailerGUARD, a state-of-the-art telematics technology for trailer fleet management, has won the 2010 Telematics Award for asset protection, a top industry honor. TrailerGUARD combines trailer telematics with diagnostics of the braking system and other vehicle operating data. It is available for all types of trailers in Europe. Operating data can be implemented into the customer's IT system for remote access via an internet portal to further improve trailer management.

In Q3 2010, WABCO disclosed that it is expanding the existing application of OptiDrive transmission automation technology on heavy duty vehicles to cover medium duty trucks and buses produced by Ashok Leyland, India's second largest manufacturer of commercial vehicles. In 2009, Ashok Leyland became the first manufacturer of commercial vehicles in India to adopt OptiDrive systems for the Indian market. Volume production is expected in early 2011. WABCO's OptiDrive system, a breakthrough in transmission automation technology, is a modular automated manual transmission solution and recipient of the 2010 Automotive News PACE Award, the automotive industry's benchmark for innovation.

Also in Q3 2010, WABCO reported the five-year extension of its long term supply agreement with Cummins Inc. to furnish air compressors for applications in trucks and buses worldwide. The products will be made by WABCO Compressor Manufacturing Company, based in Charleston, South Carolina. Cummins Inc. designs, manufactures, distributes and services engines and related technologies, serving customers in approximately 190 countries through a network of more than 500 distributor and 5,200 dealer locations. The extension of the existing supplier agreement significantly expands business development with Cummins globally while further strengthening WABCO's technology leadership.

WABCO announced in Q3 2010 that it has entered into a long term agreement with IVECO to supply innovative mechanical air processing technology for heavy duty trucks starting in 2011 for series production. It represents new business and further expands WABCO's long established supply relationship with IVECO, a global manufacturer of commercial vehicles headquartered in Turin, Italy. WABCO furnishes IVECO with anti-lock braking, electronic braking and electronically controlled air suspension systems, as well as air compressor technology, vehicle control modules and braking products, among other components. This new contract reinforces strategic growth of WABCO's air management business in Europe.

In Q3 at IAA Commercial Vehicles 2010, WABCO presented its suite of technology innovations that further improve vehicle efficiency and environmental sustainability. The company showcased its passion for technology to increase fuel economy, reduce vehicle weight and improve energy recovery, among other environmental benefits. For example, WABCO's fuel-saving breakthroughs include OptiDrive transmission automation system which can save up to 5 percent on fuel consumption. In addition, WABCO clutch compressors boost fuel efficiency by optimally disengaging a truck or bus compressor from the engine when the vehicle's air system reaches full pressure. It saves up to 264 gallons (1,000 liters) of fuel in long haul operation annually while reducing carbon dioxide emissions by as much as 5,700 pounds (2,600 kilograms).

In Q3 2010, WABCO's Intelligent Trailer Program won the industry's 2011 Trailer Innovation Award in recognition of WABCO's technologies that contribute to safer and more efficient trailer operation. It includes TrailerGUARD, a state-of-the-art telematics solution; TailGUARD for safer driving in reverse; OptiTurn for driver support when maneuvering curves; OptiLoad to automatically redistribute cargo weight and avoid trailer axle overload; Trailer Immobilizer, a security innovation to protect against theft; and Trailer Remote Control, an in-cabin device to increase safety and operational effectiveness. WABCO's Intelligent Trailer Program is available for customers worldwide.

WABCO stated in Q3 2010 that it will supply advanced air disc braking technology to VALX, a Europe-wide provider of heavy duty trailer axles, through WABCO's joint venture in China with Fuwa, the world's largest manufacturer of commercial trailer axles. As of Q4 2010, WABCO's majority-owned joint venture with Fuwa is expected to furnish VALX with trailer axles equipped with WABCO's advanced air disc brakes manufactured in Taishan, China. VALX has chosen WABCO's single piston air disc brake technology, featuring the industry's most effective weight-to-performance ratio for heavy duty vehicles. It marks further success in WABCO's global expansion as the company leverages supply chain and manufacturing capabilities in China to increase market share of advanced braking products in Europe.

WABCO confirmed in Q3 2010 that it has appealed the recently announced decision by the European Commission to assess a EUR 326 million civil fine ($400 million at the date of assessment) against entities representing the former American Standard Companies Inc. and certain of its former operations in Europe. As previously disclosed, WABCO has never manufactured or marketed any of the products that are the subject of this investigation, however, WABCO is obliged to indemnify American Standard Companies Inc., now known as Trane Inc., and certain of its former entities involved in the Commission's investigation against any fine related to this investigation. WABCO filed its appeal on September 8, 2010 in the General Court of the European Union. Separately, the company also requested an expedited procedure for its appeal; this request was denied on October 22, 2010.

WABCO Raises Full Year 2010 Guidance

Raising its full year 2010 guidance, WABCO now expects an estimated increase in 2010 sales of 46 to 47 percent in local currencies, up from 35 to 40 percent in its previous guidance.

WABCO has also raised its full year 2010 guidance for performance operating margin to range from 9.7 to 10.0 percent, up from its previous guidance of 8.5 to 9.5 percent, and operating margin on a U.S. GAAP basis to range from 9.4 to 9.7 percent, up from its previous guidance of 8.2 to 9.2 percent.

Furthermore, WABCO has raised its full year 2010 guidance for diluted earnings per share on a performance basis to range from $2.47 to $2.57, an upgrade of previous guidance that ranged from $1.95 to $2.20. WABCO has adjusted its full year 2010 guidance for diluted earnings per share on a U.S. GAAP basis to a loss ranging from $3.85 to $3.75 per share, replacing previous guidance of a loss ranging from $4.36 to $4.11 per share.

WABCO reiterates that it expects to convert between 80 and 90 percent of its net income into free cash flow on a performance basis, excluding the European Commission fine indemnification, the effects of the company's asset securitization program and net payments associated with streamlining activities.

"As the commercial vehicle industry continues its recovery, we see further strengthening of market conditions that favor WABCO's three-pillar strategy of technology leadership, global expansion and excellence in execution," said Esculier. "Looking ahead, we expect to enter 2011 with strong momentum on a path of growth while demonstrating the outstanding success of WABCO."

Conference Call

WABCO Chairman and Chief Executive Officer Jacques Esculier and Chief Financial Officer Ulrich Michel 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 where the press release and financial information will be available under "WABCO Q3 2010 Results."

The call is also accessible by telephone in listen only mode. Dial-in number is +1 408 940 3818 and U.S. toll-free dial-in number is 877 844 0834.

A replay of the call will be available from 12:00 Noon Eastern Time on October 29 until midnight November 29, 2010. Replay dial-in number is +1 706 645 9291 and U.S. toll-free dial-in number is 800 642 1687. Pass code is 13595550.

About WABCO

WABCO (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 $1.5 billion in 2009, WABCO is headquartered in Brussels, Belgium. For more information, visit www.wabco-auto.com

Forward-Looking Statements

This document contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995 that are based on management's good faith expectations and beliefs concerning future developments. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "strategies," "prospects," "intends," "projects," "estimates," "plans," "may increase," "may fluctuate," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward looking in nature and not historical facts. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the actual level of commercial vehicle production in our end markets, adverse developments in the business of our key customers, pricing changes to our supplies or products, and the other risks and uncertainties described in the "Risk Factors" section and the "Information Concerning 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 Q3 2010 results, several tables follow this news release. EBIT and sales excluding the effects of foreign exchange are non-GAAP financial measures. Additionally, operating income, EBIT, net income and net income per diluted share on a "performance basis" are non-GAAP financial measures that exclude separation and streamlining items, the European Commission fine indemnification, the one-time impact from the Indian joint venture transactions, and discrete and other one-time tax items, as applicable. Free cash flow presents our net cash provided by operating activities less net cash used for purchases of property, plant, equipment, and computer software. Free cash flow on a performance basis excludes net cash used for the European Commission fine indemnification, the impact from the company's asset securitization program and net payments for streamlining 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 Statements of Income
                           Three Months Ended         Nine Months Ended
                              September 30,             September 30,
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
(Amounts in millions,   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
 except share data)
Sales                   $     545.2  $     382.0  $   1,548.5  $   1,031.9
Cost of sales                 394.7        284.2      1,108.2        783.2
Streamlining expenses           2.3         11.0          2.7         36.2
                        -----------  -----------  -----------  -----------
Gross profit                  148.2         86.8        437.6        212.5
Cost and expenses:
 Selling and
  administrative
  expenses                     73.9         61.3        224.9        179.5
 Product engineering
  expenses                     19.8         20.1         60.5         58.0
 Streamlining
  (income)/expenses            (1.6)         7.6         (0.8)        19.3
 Other operating
  expenses/(income),
  net                           1.3          0.8          4.9         (3.7)
                        -----------  -----------  -----------  -----------
Operating income/(loss)        54.8         (3.0)       148.1        (40.6)
 European Commission
  fine indemnification            -            -       (400.4)           -
 Equity income of
  unconsolidated joint
  ventures, net                 3.2          1.6          6.9          2.1
 Other non-operating
  income/(expense), net         0.1         (4.5)        (4.8)        (5.9)
 Indemnification and
  other settlements               -         41.3            -         41.3
 Fair value
  adjustment/(charge)
  of the noncontrolling
  interest prior to
  taking control                  -          0.6            -        (11.5)
 Interest
  (expense)/income, net        (0.5)         0.2         (1.2)         0.9
                        -----------  -----------  -----------  -----------
Income/(loss) before
 income taxes                  57.6         36.2       (251.4)       (13.7)
Income taxes                   10.4          0.7         30.2          3.7
                        -----------  -----------  -----------  -----------
Net income/(loss)
 including
 noncontrolling
 interest                      47.2         35.5       (281.6)       (17.4)
 Less:  Net income
  attributable to
  noncontrolling
  interest                      3.2          1.7          9.1          2.5
                        -----------  -----------  -----------  -----------
Net income/(loss)       $      44.0  $      33.8  $    (290.7) $     (19.9)
Net income/(loss) per
 common share
 Basic                  $      0.68  $      0.53  $     (4.52) $     (0.31)
 Diluted                $      0.66  $      0.52  $     (4.52) $     (0.31)
Common shares
 outstanding
 Basic                   64,478,630   64,039,101   64,350,287   64,008,585
 Diluted                 66,540,027   64,841,763   64,350,287   64,008,585
                            WABCO HOLDINGS INC.
                   Condensed Consolidated Balance Sheet
                                                 September 30, December 31,
(Amounts in millions)                                2010          2009
                                                 ------------- ------------
ASSETS                                            (Unaudited)    (Audited)
Current assets:
    Cash and cash equivalents                    $       111.4 $      350.2
    Accounts receivable, less allowance
     for doubtful accounts:  $8.1 in 2010;
     $9.3 in 2009                                        285.0        264.2
    Inventories                                          197.6        155.3
    Future income tax benefits                            10.3          4.6
    Other current assets                                  92.5         41.4
                                                 ------------- ------------
    Total current assets                                 696.8        815.7
Facilities, less accumulated depreciation                347.1        368.2
Goodwill                                                 382.7        399.4
Capitalized software costs, less accumulated
 amortization: $159.8 in 2010; $154.5 in 2009             20.5         22.0
Long-term future income tax benefits                      60.4         56.2
Investments in unconsolidated joint ventures              13.9         11.1
Patents and intangibles                                   19.3         21.7
Other assets                                              24.0         21.3
                                                 ------------- ------------
Total Assets                                     $     1,564.7 $    1,715.6
                                                 ============= ============
LIABILITIES AND EQUITY
Current liabilities:
    Loans payable to banks                       $        20.2 $        1.7
    Accounts payable                                     160.2        111.2
    Accrued payroll                                      111.0         68.8
    Current portion of warranties                         43.4         43.1
    Taxes payable                                         11.8         11.4
    Indemnification and other separation
     related liabilities                                  14.2         11.6
    Streamlining liabilities                              17.5         31.7
    Other accrued liabilities                            112.3         75.7
                                                 ------------- ------------
    Total current liabilities                            490.6        355.2
Long-term debt                                           215.7        154.4
Post-retirement benefits                                 337.5        355.6
Deferred tax liabilities                                  28.0         25.8
Long-term indemnification liabilities                     27.2         27.9
Long-term income tax liabilities                          70.7         69.8
Other liabilities                                         42.3         48.0
                                                 ------------- ------------
Total Liabilities                                      1,212.0      1,036.7
Total Equity                                             352.7        678.9
                                                 ------------- ------------
Total Liabilities & Equity                       $     1,564.7 $    1,715.6
                                                 ============= ============
                            WABCO HOLDINGS INC.
                   Consolidated Statement of Cash Flows
                                (Unaudited)
                                                     Three Months Ended
                                                        September 30,
                                                  ------------------------
(Amounts in millions)                                 2010         2009
                                                  -----------  -----------
Operating activities:
    Net income including noncontrolling
     interest                                     $      47.2  $      36.3
    Adjustments to reconcile net income to net
     cash (used in)/provided by operating
     activities:
      Depreciation                                       17.9         15.4
      Amortization of capitalized software and
       other intangibles                                  4.1          5.6
      Fair value adjustment of the noncontrolling
       interest prior to taking control                     -         (0.6)
      Equity in earnings of unconsolidated joint
       ventures, net of dividends received               (1.8)         1.5
      Non-cash stock compensation                         3.1          3.2
      Loss/(gain) on sale or disposal of facilities       0.8         (0.1)
      Indemnification settlements                           -        (41.3)
    Changes in assets and liabilities:
      Accounts receivable                                (8.5)        (9.1)
      Inventories                                       (23.8)       (12.7)
      Accounts payable                                   18.0          8.8
      Other accrued liabilities and taxes              (421.7)         9.8
      Post-retirement benefits                           (0.1)        (0.7)
      Other current and long-term assets                (16.9)        14.7
      Other long-term liabilities                           -          0.6
                                                  -----------  -----------
Net cash (used in) / provided by operating
 activities                                            (381.7)        31.4
                                                  -----------  -----------
Investing activities:
    Purchases of property, plant and equipment          (13.3)       (10.9)
    Investments in capitalized software                  (1.8)        (0.8)
    Proceeds from disposal of property, plant
     and equipment                                        3.0            -
                                                  -----------  -----------
Net cash used in investing activities                   (12.1)       (11.7)
                                                  -----------  -----------
Financing activities:
    Net repayments of long-term debt                     (0.1)      (156.8)
    Net borrowings of revolving credit facilities        62.1        147.9
    Net borrowings/(repayments) of short-term debt       18.8        (10.1)
    Dividends to non-controlling interest holders        (0.3)           -
    Proceeds from exercise of stock options               2.0          0.2
                                                  -----------  -----------
Net cash provided by / (used in) financing
 activities:                                             82.5        (18.8)
                                                  -----------  -----------
Effect of exchange rate changes on cash and cash
 equivalents                                             43.2         13.0
                                                  -----------  -----------
Net (decrease)/increase in cash and cash
 equivalents                                           (268.1)        13.9
Cash and cash equivalents at beginning of period        379.5        372.6
                                                  -----------  -----------
Cash and cash equivalents at end of period        $     111.4  $     386.5
                                                  ===========  ===========
                            WABCO HOLDINGS INC.
                Q3 2010 Data Supplement Sheet (Unaudited)
                                  Quarter Ended September 30,
(Amounts in millions, except
   per share data)
                               % of               % of
                               Sales/             Sales/  Chg vs. % Chg vs.
                     2010    Adj Sales  2009    Adj Sales  2009      2009
                    -------  --------  -------  --------  -------   -------
Sales
Reported            $ 545.2           $ 382.0             $ 163.2     42.7%
  Foreign exchange
   translational
   effects             25.7                 -                25.7
                    -------           -------             -------
Adjusted Sales      $ 570.9           $ 382.0             $ 188.9     49.5%
                    =======           =======             =======
Gross Profit
Reported            $ 148.2     27.2% $  86.8       22.7% $  61.4     70.7%
  Streamlining
   costs                2.3              11.0                (8.7)
  Separation
   costs                0.3               0.3                   -
                    -------           -------             -------
Performance Gross
 Profit             $ 150.8     27.7% $  98.1       25.7% $  52.7     53.7%
  Foreign exchange
   translational
   effects              8.8                 -
                    -------           -------             -------
Adjusted Gross
 Profit             $ 159.6     28.0% $  98.1       25.7% $  61.5     62.7%
                    =======           =======             =======
Selling, Administrative,
 Product Engineering
 Expenses and Other
Reported            $  93.4     17.1% $  89.8       23.5% $   3.6      4.0%
  Streamlining
   costs                1.6              (7.6)                9.2
  Separation
   costs               (0.6)             (1.1)                0.5
                    -------           -------             -------
Performance Selling,
 Administrative,
 Product Engineering
 Expenses and Other $  94.4     17.3% $  81.1       21.2% $  13.3     16.4%
  Foreign exchange
   translational
   effects              6.5                 -
                    -------           -------             -------
Adjusted Selling,
 Administrative,
 Product Engineering
 Expenses and Other $ 100.9     17.7% $  81.1       21.2% $  19.8     24.4%
                    =======           =======             =======
Operating Income/(Loss)
Reported            $  54.8     10.1% $  (3.0)      -0.8% $  57.8      +++
  Streamlining
   costs                0.7              18.6               (17.9)
  Separation
   costs                0.9               1.4                (0.5)
                    -------           -------             -------
Performance
 Operating Income   $  56.4     10.3%    17.0        4.5%    39.4      +++
  Foreign exchange
   translational
   effects              2.3                 -
                    -------           -------             -------
Adjusted Operating
 Income             $  58.7     10.3% $  17.0        4.5% $  41.7      +++
                    =======           =======             =======
EBIT (Earnings Before
 Interest and Taxes)
Reported Operating
 Income/(Loss)      $  54.8           $  (3.0)            $  57.8
  Equity in Income
   of Unconsolidated
   Joint Venture        3.2               1.6                 1.6
  Other non-operating
   expenses, net        0.1              (4.5)                4.6
  Indemnification
   and Other
   settlements            -              41.3               (41.3)
  Impact from India
   JV transaction         -               0.6                (0.6)
  Net income
   attributable
   to noncontrolling
   interest            (3.2)             (1.7)               (1.5)
                    -------           -------             -------
EBIT                $  54.9     10.1% $  34.3        9.0% $  20.6     60.1%
  Streamlining
   costs                0.7              18.6               (17.9)
  Separation
   costs                1.7             (35.9)               37.6
  Impact from India
   JV transaction         -              (0.6)                0.6
                    -------           -------             -------
Performance EBIT
 (Earnings Before
 Interest and
 Taxes)             $  57.3     10.5% $  16.4        4.3% $  40.9      +++
  Foreign exchange
   translational
   effects              2.2                 -
                    -------           -------             -------
Adjusted  EBIT
 (Earnings Before
 Interest and
 Taxes)             $  59.5     10.4% $  16.4        4.3% $  43.1      +++
                    =======           =======             =======
Pre-Tax Income
EBIT                $  54.9           $  34.3             $  20.6
  Interest(expense)
   /income, net        (0.5)              0.2                (0.7)
                    -------           -------             -------
Pre-Tax Income      $  54.4           $  34.5             $  19.9
  Streamlining
   costs                0.7              18.6               (17.9)
  Separation
   costs                1.7             (35.9)               37.6
  Impact from India
   JV transaction         -              (0.6)                0.6
                    -------           -------             -------
Performance Pre-Tax
 Income             $  56.8           $  16.6             $  40.2
Net Income
Reported Net Income $  44.0           $  33.8             $  10.2
  Streamlining
   cost, net of
   tax                  0.5              15.5               (15.0)
  Tax items             1.1               0.2                 0.9
  Separation costs,
   net of tax and
   separation
   related taxes        1.5             (36.4)               37.9
  Impact from India
   JV transaction         -              (0.6)                0.6
                    -------           -------             -------
Performance Net
 Income             $  47.1           $  12.5             $  34.6
                    =======           =======             =======
Performance Net
 Income per Diluted
 Common Share       $  0.71           $  0.19
Common Shares
 Outstanding -
 Diluted               66.5              64.8
Incremental Gross
 Profit and
 Operating Income    Gross           Operating
 Margin              Profit           Income
Increase in
 adjusted sales
 from '09             188.9             188.9
Increase in
 adjusted income
 from '09              61.5              41.7
                    -------           -------
Incremental Income
 as a % of Sales         33%               22%
                    -------           -------
+++ Percentage Not Meaningful
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.
          Nine Months Ended September 2010 Data Supplement Sheet
                                (Unaudited)
                                 Nine Months Ended September 30,
(Amounts in millions, except
   per share data)
                               % of               % of
                               Sales/             Sales/  Chg vs. % Chg vs.
                     2010    Adj Sales  2009    Adj Sales  2009      2009
                    -------  --------  -------  --------  -------   -------
Sales
Reported           $ 1,548.5          $ 1,031.9           $   516.6   50.1%
  Foreign exchange
   translational
   effects
                        (2.5)                 -                (2.5)
                   ---------          ---------           ---------
Adjusted Sales     $ 1,546.0          $ 1,031.9           $   514.1   49.8%
                   =========          =========           =========
Gross Profit
Reported           $   437.6    28.3% $   212.5     20.6% $   225.1    +++
  Streamlining
   costs                 2.7               36.2               (33.5)
  Separation
   costs                 0.8                0.9                (0.1)
                   ---------          ---------           ---------
Performance Gross
 Profit            $   441.1    28.5% $   249.6     24.2% $   191.5   76.7%
  Foreign exchange
   translational
   effects               2.4                  -
                   ---------          ---------           ---------
Adjusted Gross
 Profit            $   443.5    28.7% $   249.6     24.2% $   193.9   77.7%
                   =========          =========           =========
Selling, Administrative,
 Product Engineering
 Expenses and Other
Reported           $   289.5    18.7% $   253.1     24.5% $    36.4   14.4%
  Streamlining
   costs                 0.8              (19.3)               20.1
  Separation
   costs                (2.8)               1.3                (4.1)
                   ---------          ---------           ---------
Performance
 Selling,
 Administrative,
 Product Engineering
 Expenses and
 Other             $   287.5    18.6% $   235.1     22.8% $    52.4   22.3%
  Foreign exchange
   translational
   effects               4.4                  -
                   ---------          ---------           ---------
Adjusted Selling,
 Administrative,
 Product Engineering
 Expenses and
 Other             $   291.9    18.9% $   235.1     22.8% $    56.8   24.2%
                   =========          =========           =========
Operating Income/(Loss)
Reported           $   148.1     9.6% $   (40.6)    -3.9% $   188.7    +++
  Streamlining
   costs                 1.9               55.5               (53.6)
  Separation
   costs                 3.6               (0.4)                4.0
                   ---------          ---------           ---------
Performance
 Operating Income  $   153.6     9.9%      14.5      1.4%     139.1    +++
  Foreign exchange
   translational
   effects              (2.0)                 -
                   ---------          ---------           ---------
Adjusted Operating
 Income            $   151.6     9.8% $    14.5      1.4% $   137.1    +++
                   =========          =========           =========
EBIT (Earnings Before
 Interest and Taxes)
Reported Operating
 Income/(Loss)     $   148.1          $   (40.6)          $   188.7
  Equity in
   Income of
   Unconsolidated
   Joint Venture         6.9                2.1                 4.8
  Other non-operating
   expenses, net        (4.8)              (5.9)                1.1
  EC fine             (400.4)                 -              (400.4)
  Indemnification and
   Other settlements       -               41.3               (41.3)
  Impact from India
   JV transaction          -              (11.5)               11.5
  Net income
   attributable to
   noncontrolling
   interest             (9.1)              (2.5)               (6.6)
                   ---------          ---------           ---------
EBIT               $  (259.3)  -16.7% $   (17.1)    -1.7% $  (242.2)   +++
  Streamlining
   costs                 1.9               55.6               (53.7)
  Separation
   costs                 7.2              (36.9)               44.1
  EC fine              400.4                  -               400.4
  Impact from India
   JV transaction          -               11.0               (11.0)
                   ---------          ---------           ---------
Performance EBIT
 (Earnings Before
 Interest and
 Taxes)            $   150.2     9.7% $    12.6      1.2% $   137.6    +++
  Foreign exchange
   translational
   effects              (1.7)                 -
                   ---------          ---------           ---------
Adjusted  EBIT
 (Earnings Before
 Interest and
 Taxes)            $   148.5     9.6% $    12.6      1.2% $   135.9    +++
                   =========          =========           =========
Pre-Tax (Loss)/Income
EBIT               $  (259.3)         $   (17.1)          $  (242.2)
  Interest (expense)
   /income, net        (1.2)               0.9                (2.1)
                   ---------          ---------           ---------
Pre-Tax Loss       $  (260.5)         $   (16.2)          $  (244.3)
  Streamlining
   costs                 1.9               55.6               (53.7)
  Separation
   costs                 7.2              (36.9)               44.1
  EC fine              400.4                  -               400.4
  Impact from India
   JV transaction          -               11.0               (11.0)
                   ---------          ---------           ---------
Performance
 Pre-Tax Income    $   149.0          $    13.5           $   135.5
Net Loss
Reported Net Loss  $  (290.7)         $   (19.9)          $  (270.8)
  Streamlining
   cost, net of tax      1.6               48.6               (47.0)
  Tax items              4.9                2.4                 2.5
  Separation costs,
   net of tax and
   separation related
   taxes                 6.0              (38.4)               44.4
  EC fine              400.4                  -               400.4
  Impact from India
   JV transaction          -                9.8                (9.8)
                   ---------          ---------           ---------
Performance Net
 Income            $   122.2          $     2.5           $   119.7
                   =========          =========           =========
Performance Net
 Income per
 Diluted Common
 Share             $    1.85          $    0.04
Common Shares
 Outstanding -
 Diluted                66.2               64.0
+++ Percentage Not Meaningful
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 Performance Free Cash Flow
                                (Unaudited)
(Amounts in millions)                               Three Months Ended
                                                       September 30,
                                                  -----------  -----------
                                                      2010         2009
                                                  -----------  -----------
Net Cash (Used in) / Provided by Operating
 Activities                                       $    (381.7) $      31.4
Deductions or Additions to Reconcile to Free Cash
 Flow:
Net purchases of property, plant, equipment and
 computer software                                      (12.1)       (11.7)
                                                  -----------  -----------
Free Cash Flow                                    $    (393.8) $      19.7
                                                  ===========  ===========
  Impact from EC fine indemnification payment (A)      (437.2)           -
  Impact from accounts receivables sold into
   securitization program                                (7.5)           -
  Impact from streamlining payments, net                 (1.5)       (10.5)
                                                  -----------  -----------
Free Cash Flow on a Performance Basis             $      52.4  $      30.2
                                                  ===========  ===========
(A) Represents 326 million Euro payment made in September translated at a
    Euro to USD rate of approx. 1.34 on date of payment.
Note:  This statement reconciles net cash provided by operating activities
to free cash flow on a performance basis.  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.
 Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year 2010
                                 Guidance
                                (Unaudited)
(Amounts in millions, except per
 share data)                            Previous             Revised
                                    Full Year 2010       Full Year 2010
                                        Estimate             Estimate
                                  -------------------  -------------------
Operating Income
Reported Operating Income Margin       8.2% - 9.2%          9.4% - 9.7%
   Streamlining cost, impact to
    margin                                0.1%                 0.1%
   Separation costs, impact to
    margin                                0.2%                 0.2%
                                  -------------------  -------------------
Performance Operating Income
 Margin                                8.5% - 9.5%         9.7% - 10.0%
                                  ===================  ===================
Net Income
Reported Net Income               (280.8) - ($  264.4) (247.9) - ($  241.3)
   Streamlining cost, net of tax                  1.0                  2.0
   Tax items                                      2.0                  2.0
   EC fine                                      400.4                400.4
   Separation costs, net of tax
    and separation related taxes                  6.5                  7.0
                                  -------------------  -------------------
Performance Net Income            $   129.1 - $ 145.5  $   163.5 - $ 170.1
                                  ===================  ===================
Reported Net Income per Diluted
 Common Share                     ($  4.36) - ($ 4.11) ($  3.85) - ($ 3.75)
Performance Net Income per
 Diluted Common Share             $     1.95 - $ 2.20  $     2.47 - $ 2.57
Diluted common shares outstanding
 (Reported)                                      64.4                 64.4
Diluted common shares outstanding
 (Performance)                                   66.2                 66.2
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.
Media, investors and analysts contact
Jason Campbell
+1 732 369 7477
jason.campbell@wabco-auto.com

SOURCE: WABCO Holdings Inc.

mailto:jason.campbell@wabco-auto.com

 

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