Commercial vehicle supplier Wabco Holdings Inc. reported third-quarter net income dropped and revenue soared.
For the period ended Sept. 30, year-over-year net income slid to $69.8 million, or $1.30 per diluted share, compared with $98.1 million, or $1.76.
The decline in earnings was primarily due to an indemnification liability and by an exceptional tax benefit a year earlier, according to Brussels, Belgium-based Wabco.
Revenue hit $827.8 million compared with $675.4 a year earlier.
“In Q3 2017, Wabco set a quarterly record for sales, both reported sales and in local currencies, as we capitalized on solid year-on-year growth in the commercial vehicle market and once again demonstrated strong outperformance of global truck and bus production,” Wabco Chairman and CEO Jacques Esculier said in a statement.
Also during the quarter, “we continued to sustain further adoption of Wabco’s safety and efficiency technologies globally,” Esculier said. “In particular, in North America, we further augmented Wabco content per vehicle through increased sales of automated manual transmission solutions and electronic stability control systems.”
Operating income rose to $93.2 million compared with $87.6 million in the 2016 period.
Wabco did not provide regional sales figures, however China was a particularly strong market, and markets grew in every region of the world, according to the company. Wabco global aftermarket sales also increased 13.6% to compared with last year from continuous growth in key regions, partially offset by a severe market downturn in the Middle East.
Total sales in Europe, its largest market, increased 14.6%.
Sales in North America increased 44.1%.
Wabco raised its full-year guidance on earnings per share to $5.95 to $6.10 compared with its previous guidance of $5.74 to $6.04.
The revision lifted sales to $3.3 billion to $3.3 billion compared with $3 billion to $3.1 billion.
Wabco is a supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles, according to the company, and it operates in 40 countries.