Wabco Holdings Inc. reported lower first-quarter net income and revenue as truck and trailer production declined globally.
Wabco does about 76% of its business outside of the United States.
For the period ended March 31, net income dropped to $84.2 million, or $1.64 per diluted share, on revenue of $933 million. That compared with net income of $101 million, or $1.87, on revenue of $1 billion a year earlier.
“Our sales performance took place in a context of a challenging market, where the global production of trucks and buses declined 2.5% and the production of trailers also decreased 7.3%,” Wabco said in a company statement. “Changes in exchange rates can have a significant impact on the reported results of our operations, which are presented in U.S. dollars.”
In March, ZF Friedrichshafen AG, a global supplier of mobility systems for commercial vehicles, passenger cars and industrial technology, announced that it has entered into a definitive agreement to acquire Wabco for $7.1 billion, or $136.50 per share.
Bern, Switzerland-based Wabco’s largest selling products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes and a variety of conventional mechanical products such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. Its North American operation is headquartered in Auburn Hills, Mich. — Transport Topics