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MotivePower parent firm nets $115M in income for ’09

Wabtec Corp., the Pennsylvania parent company of Boise-based locomotive manufacturer MotivePower, announced its fourth quarter and fiscal year 2009 financials on Feb. 23, reporting earnings per diluted share of $2.39 on sales of $1.4 billion for the year.

Cash flow from operations was strong, pegged at $161 million, or 11.5 percent of sales – the 12th consecutive year the company’s cash flow from operations exceeded net income. Net income was reported at $24.2 million for the quarter and $115 million for the year.

At the close of FY09, Wabtec had cash totaling $189 million and debt of $392 million. During the quarter the company completed the $93 million acquisition of Unifin International, an Ontario, Canada-based manufacturer of cooling systems and equipment for the power generation and transmission industry.

Albert Neupaver, Wabtec president and CEO, stated that while the company faced “very challenging market conditions” in 2009, its diversified business model helped keep cash flow high and contributed to improved margins, after adjusting for one-time items.

According to the company’s earnings release, fourth quarter sales fell from $405 million to $359 million, brought down by slowed sales in Wabtec’s Freight Group. Its Transit Group, however, saw sales increase from $206 million to $211 million. MotivePower, in Boise, builds and services both commuter and switcher locomotives.

“Market conditions will continue to be challenging in 2010, but we expect to benefit from our 2009 restructuring actions and other growth initiatives,” Neupaver said.

Shares in Wabtec (NYSE:WAB) were valued at $38.99 in mid-morning trading following its earnings report, down $0.37 or 0.94 percent from the opening bell.


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