US-based Wabtec has reported a net income attributable to its shareholders of $158m in Q4 2022, compared with $190m in the same quarter a year ago.
The firm’s GAAP earnings per diluted share were $0.86 in the quarter, a 15.7% fall from the prior year, while adjusted earnings per diluted share rose 10.2% to $1.30.
Rise in restructuring expenses tied to the Integration 2.0 programme resulted in lower GAAP EPS, while higher sales and cost control measures triggered growth in adjusted EPS, stated the firm.
Net sales grew 11.2% year-on-year to $2.31bn. The growth can be attributed to higher freight segment sales, which outweighed lower sales in the transit segment. Consolidated sales increased 15.7% on a constant currency basis.
Growth in freight segment sales was led by digital electronics, services, and equipment, with sales up 18.6% on a constant currency basis.
Unfavourable foreign currency exchange hit the transit segment, with sales rising 9.3% on a constant currency basis.
Wabtec’s operating cash flow stood at $410m in the three-month-period ending December 2022, versus $314m a year ago.
Higher restructuring expenses led to 2.0 percentage points decline in GAAP operating margin.
The unfavourable sales mix and higher technology investment reduced adjusted operating margin.
Multi-year backlog at the end of 2022 was $272m more than 31 December 2021. This backlog rose 3.1% to $680m, when excluding the impact of unfavourable foreign currency exchange.
The firm’s 2023 outlook projects sales in a range of $8.7bn to $9bn, and adjusted earnings per diluted share between $5.15 and $5.55.
