WABCO Reports Q3 2012 Results; Delivers Robust Operating

WABCO Reports Q3 2012 Results; Delivers Robust Operating Margin Amid
Sudden Downturn in Key Markets; Adjusts Guidance for Full Year 2012 
BRUSSELS, BELGIUM -- (Marketwire) -- 11/02/12 -- WABCO Holdings Inc.
(NYSE:WBC) - 


 
--  Q3 2012 sales of $588 million, down 7.2 percent in local currencies and
    down 16.7 percent in U.S. dollars from a year ago 
--  Q3 2012 operating margin of 13.0 percent on a performance basis, down
    from 13.4 percent a year ago; operating margin of 12.4 percent on a U.S.
    GAAP basis, down from 13.1 percent a year ago 
--  Q3 2012 diluted EPS of $1.02 on a performance basis, down from $1.19 a
    year ago; diluted EPS of $1.19 on a U.S. GAAP basis, down from $1.22 a
    year ago 
--  In Q3 2012, WABCO generated $112.6 million in net cash from operating
    activities and $90.2 million of free cash flow, excluding payments of
    $4.3 million for streamlining and separation activities, resulting in a
    conversion rate of 136 percent of performance net income attributable to
    the company, bringing year-to-date 2012 conversion rate to 102 percent 
--  As announced on October 29, 2012, WABCO is now authorized to repurchase
    up to $459.8 million of shares through December 31, 2014 
--  Previously disclosed guidance for full year 2012 sales is adjusted to
    decline between 4 and 5 percent in local currencies and full year 2012
    diluted EPS on a performance basis is narrowed to now range from $4.28
    to $4.38, while full year 2012 diluted EPS on a U.S. GAAP basis is
    adjusted to now range from $4.54 to $4.64 

 
WABCO Holdings Inc., (www.wabco-auto.com) a global technology leader
and tier-one supplier to the commercial vehicle industry, today
reported Q3 2012 sales of $588 million, down 7.2 percent in local
currencies from a year ago and down 16.7 percent in U.S. dollars,
reflecting sudden downturn in key markets. 
"We had previously stated that markets across all regions would be
uncertain and unstable throughout 2012 but in Q3 2012 market
conditions further deteriorated beyond what we expected as global
truck and bus production declined 12 percent year on year and 8
percent versus the previous quarter," said Jacques Esculier, WABCO
Chairman and Chief Executive Officer. 
"Western Europe, our largest market, accelerated 
its downturn as new
truck and bus builds declined 11 percent versus a year ago and 16
percent versus Q2 2012. In addition, North America reversed its
growth trend in Q3 2012 as the market contracted almost 2 percent
year on year and 16 percent versus the previous quarter," said
Esculier. "Furthermore, truck and bus production in China dropped 17
percent year on year and 11 percent versus the previous quarter." 
"Nonetheless, WABCO delivered solid performance operating margin at
13.0 percent in Q3 2012 as we acted quickly to mitigate this sudden
downturn, further demonstrating WABCO's strong execution of business
fundamentals across our global organization," said Esculier.  
"WABCO's business from emerging markets continued to benefit from an
increased adoption of our technologies, resulting in higher value of
WABCO content per vehicle," said Esculier. "Also in Q3 2012, our
aftermarket business delivered its best quarter ever." 
WABCO reported Q3 2012 performance operating income of $76.4 million
versus $94.5 million a year ago, and operating income was $73.2
million on a U.S. GAAP basis versus $92.4 million a year ago.  
WABCO reported Q3 2012 performance operating margin of 13.0 percent,
down from 13.4 percent a year ago, and operating margin was 12.4
percent on a U.S. GAAP basis, down from 13.1 percent a year ago. 
WABCO reported Q3 2012 performance net income attributable to the
company of $66.3 million or $1.02 per diluted share versus $81.9
million or $1.19 per diluted share a year ago, and Q3 2012 U.S. GAAP
net income attributable to the company of $77.5 million or $1.19 per
diluted share versus $83.8 million or $1.22 per diluted share a year
ago. Q3 2012 U.S. GAAP results benefitted from several discrete tax
items. 
WABCO generated $112.6 million in net cash from operating activities
in Q3 2012, resulting in free cash flow of $85.9 million. Excluding
payments of $4.3 million for streamlining and separation activities,
free cash flow was $90.2 million, which is a conversion rate of 136
percent of performance net income attributable to the company,
bringing year-to-date 2012 conversion rate to 102 percent.  
"WABCO's Q3 2012 results demonstrate how the company consistently and
efficiently flexes with changes in market demand to continue to
deliver outstanding value for our shareowners," said Esculier.
"WABCO's fundamentals remain firmly in place as we continue to
mitigate the impact of sales declines on our margins." 
"WABCO's Operating System, one of our industry's most advanced
management environments, continued to enable fast and flexible
responses to significant market changes. It generated $17.1 million
of materials and conversion productivity in Q3 2012, another solid
result. Gross materials productivity represented 5.3 percent of total
materials cost but, as expected, the impact of commodity inflation
reduced net materials productivity to 4.6 percent," said Esculier.
"Q3 2012 was another robust quarter throughout our organization for
conversion productivity, which we delivered at 6.1 percent, while at
the same time continuously flexing capacity to address changes in
market demand." 
As previously announced, WABCO's board of directors authorized the
company on October 26, 2012 to enter into an additional share
repurchase program. This board authorization allows for the
repurchase of a further $400 million of common shares at the
discretion of management for a period until December 31, 2014.  
Since the initiation of WABCO's ongoing share buyback program of $400
million commenced in June 2011, the company has repurchased 6,409,012
million shares for $340.2 million in open market transactions as of
October 26, 2012. 
Together with the new program, as of October 26, 2012, WABCO is
authorized to repurchase up to $459.8 million of shares through
December 31, 2014. 
Recent Highlights  
WABCO announced in Q3 2012 that it has acquired Ephicas, a pioneering
company in the field of aerodynamic solutions for commercial
vehicles. WABCO will develop a range of aerodynamic products -
branded OptiFlow(TM) - designed to increase vehicle efficiency and
reduce fuel consumption for trucks, trailers and buses. WABCO's first
product introduction is an innovative aerodynamic SideWing for
trailers. Already installed within 17 major European fleets, SideWing
delivers long-haul fuel savings up to 5 percent. Independent tests
show these results are up to 3 times greater than those from
comparable competitive products. 
In Q3 2012, WABCO reported that it has entered into a new agreement
with GAZ Group, Russia's leading manufacturer of commercial vehicles.
WABCO is sole supplier of anti-lock braking systems (ABS) for
heavy-duty trucks, and the company will supply ABS for series
production of Ural trucks and GAZ Group's whole line of buses. WABCO
will also supply its innovative integrated system for electronic tire
pressure monitoring, IVTM(TM), for series production of low-floor
LIAZ buses for Moscow's public bus fleet. GAZ Group has been a
customer of WABCO since 2005.  
The Meritor WABCO joint venture in North America reported in Q3 2012
that WABCO's anti-lock braking system (ABS) is now standard equipment
on all Navistar's International(R) ProStar(R)+ and LoneStar(R) class
8 trucks. 
These vehicles from Navistar Inc. will add to the more than
7 million ABS systems already produced by WABCO for the North
American market.  
Also in Q3 2012, WABCO presented its breakthrough hydraulic anti-lock
braking systems (ABS). This technology is the industry's first and
unique range of hydraulic ABS that integrates electronic stability
control (ESC) for trucks and buses worldwide. As the first supplier
to bring such technology to market, WABCO helps original equipment
manufacturers to respond to government regulations that increasingly
require ESC on different classes of commercial vehicles. From 2013
onward, national authorities will be implementing ESC legislation in
Europe, Asia, and North and South America. 
WABCO introduced OnLane(TM) technology, a lane departure warning
system (LDWS) for trucks and buses, in Q3 2012. OnLane marks WABCO's
next step in advanced driver assistance systems. OnLane increases
vehicle safety by providing the driver with visual and acoustic
warnings or an optional seat-vibration warning, during unintentional
lane departure, which is one of the most common causes of accidents
involving commercial vehicles. OnLane is fully compliant with the
European Union's regulation that requires LDWS on new trucks and
buses as of November 2013. 
WABCO INDIA inaugurated its second world-class manufacturing facility
at Mahindra World City in Chennai, India, during Q3 2012. The company
now owns and operates four world-class manufacturing sites located in
India. WABCO's Plant 2 at Mahindra World City will manufacture
leading technologies and innovative products to supply commercial
vehicle manufacturers in Germany, Japan, Poland, and the United
States, among other markets internationally. The new plant will
employ 160 people, including 30 engineers. 
Recently, WABCO announced that its TrailerGUARD(TM) telematics system
with remote diagnostics technology for trailer fleet management has
won the 2012 Telematics Award for logistics and transport, a top
industry honor. TrailerGUARD's new remote diagnostics function is the
industry's first of its kind for a trailer's electronic braking and
air suspension control system. It allows remote diagnosis by
providing information about the trailer's technical status in
real-time.  
WABCO said in Q3 2012 that it has been recognized with a top award
for quality achievement throughout 2011 by PACCAR, a global
technology leader in the design, manufacture and customer support of
high-quality commercial trucks. PACCAR honored WABCO's manufacturing
facility in Meppel, the Netherlands, which supplies vehicle parts and
components for DAF trucks in series production at quality levels that
equal or exceed PACCAR's requirements. 
Full Year 2012 Guidance  
Based on prevailing market conditions, WABCO revises its guidance for
2012 to now indicate estimated 2012 sales to decline between 4 and 5
percent in local currencies, which is adjusted from previous guidance
for sales growth to range between negative 2 percent and positive 3
percent in local currencies. 
WABCO narrows its guidance for 2012 performance operating margin to
now range from 13.4 to 13.6 percent versus its previous guidance to
range from 12.8 to 13.8 percent, while operating margin on a U.S.
GAAP basis is adjusted to now range from 13.1 to 13.3 percent, versus
its previous guidance to range from 12.5 to 13.5 percent, resulting
in updated diluted earnings per share on a performance basis to range
from $4.28 to $4.38 versus previous guidance to range from $4.30 to
$4.80, and diluted earnings per share on a U.S. GAAP basis is updated
to now range from $4.54 to $4.64 versus previous guidance to range
from $4.42 to $4.92. 
WABCO now expects to convert around 90 percent of its net income
attributable to the company into free cash flow, excluding payments
associated with streamlining and separation activities, an upgrade of
the company's previous guidance for a conversion rate between 80 and
90 percent. 
"Although the market downturn in Q3 2012 was sudden, WABCO remained
well prepared to protect our margins," said Esculier. "Looking ahead,
we expect to achieve full year 2012 operating margin that equals or
exceeds the record level that we set in 2011 on a performance basis." 
"WABCO's three-pillar strategy - technology leadership, globalization
and excellence in execution - continues to power the future success
of WABCO," said Esculier. "Even in these uncertain times, we remain
fully confident in our ability to continue to deliver maximum value
for WABCO's shareowners." 
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 2012 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 November 2 until midnight November 30, 2012. Replay dial-in number
is +1 404 537 3406 and U.S. toll-free dial-in number is 855 859 2056.
Pass code is 34780403. 
About WABCO 
WABCO (NYSE:WBC) is a leading global supplier of technologies and
control systems for the safety and efficiency of commercial vehicles.
Founded over 140 years ago, WABCO continues to pioneer breakthrough
electronic, mechanical and mechatronic technologies for braking,
stability and transmission automation systems supplied to the world's
leading commercial truck, bus and trailer manufacturers. With sales
of $2.8 billion in 2011, 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 2012 result
s, several tables
follow this news release. Sales excluding the effects of foreign
exchange, incremental gross and operating margin and EBIT are
non-GAAP financial measures. Additionally, operating income, EBIT,
net income attributable to the company and net income attributable to
the company per diluted share on a "performance basis" are non-GAAP
financial measures that exclude separation and streamlining items,
the one-time impact from an adjustment to the UK pension plan, 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. 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. 
Attachment  


 
--  Consolidated Statements of Income 
--  Condensed Consolidated Balance Sheet 
--  Three Months Ended September 30, 2012 Consolidated Statement of Cash
    Flows 
--  Nine Months Ended September 30, 2012 Consolidated Statement of Cash
    Flows 
--  Q3 2012 Data Supplement Sheet 
--  Nine Months Ended September 30, 2012 Data Supplement Sheet 
--  Reconciliation of Net Cash Provided by Operating Activities to Free Cash
    Flow 
--  Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year 2012
    Guidance 
 
                            WABCO HOLDINGS INC.                             
                     Consolidated Statements of Income                      
                                (Unaudited)                                 
                                                                            
                               Three Months Ended         Nine Months Ended 
                                    September 30,             September 30, 
                                2012         2011         2012         2011 
                        ----------------------------------------------------
(Amounts in millions,                                                       
 except share data)                                                         
Sales                    $     588.3  $     706.3  $   1,880.8  $   2,122.2 
Cost of sales                  413.1        501.9      1,315.8      1,503.7 
                        ----------------------------------------------------
Gross profit                   175.2        204.4        565.0        618.5 
Costs and expenses:                                                         
  Selling and                                                               
   administrative                                                           
   expenses                     76.4         82.3        229.6        253.2 
  Product engineering                                                       
   expenses                     25.5         28.4         77.7         80.6 
  Other operating                                                           
   expense, net                  0.1          1.3          2.2          5.2 
                        ----------------------------------------------------
Operating income                73.2         92.4        255.5        279.5 
                                                                            
  Equity income of                                                          
   unconsolidated joint                                                     
   ventures, net                 4.1          3.9         13.8         12.4 
  Other non-operating                                                       
   (expense) / income,                                                      
   net                          (0.8)         0.1         (2.0)        (1.7)
  Indemnification and                                                       
   other settlements               -            -            -         23.1 
  Interest expense, net         (0.3)        (0.4)        (1.2)        (1.6)
                        ----------------------------------------------------
Income before income                                                        
 taxes                          76.2         96.0        266.1        311.7 
                                                                            
Income tax (benefit) /                                                      
 expense                        (3.3)         9.1         15.7         16.6 
                        ----------------------------------------------------
Net income                      79.5         86.9        250.4        295.1 
                                                                            
  Less: Net income                                                          
   attributable to                                                          
   noncontrolling                                                           
   interest                      2.0          3.1          8.1          8.0 
                        ----------------------------------------------------
Net income attributable                                                     
 to company              $      77.5  $      83.8  $     242.3  $     287.1 
                                                                            
                                                                            
Net income attributable                                                     
 to company per common                                                      
 share                                                                      
  Basic                  $      1.22  $      1.25  $      3.78  $      4.28 
  Diluted                $      1.19  $      1.22  $      3.69  $      4.13 
                                                                            
                                                                            
Weighted average common                                                     
 shares outstanding                                                         
  Basic                   63,628,835   66,811,299   64,184,823   67,154,389 
  Diluted                 64,904,085   68,656,306   65,638,742   69,483,447 
                                                                            
                             WABCO HOLDINGS INC.                            
                    Condensed Consolidated Balance Sheet                    
                                 (Unaudited)                                
                                                                            
                                                September 30,   December 31,
(Amounts in millions)                                    2012           2011
                                              ------------------------------
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents                     $       225.0  $       102.4
  Accounts receivable, less allowance for                                   
   doubtful accounts: $3.4 in 2012; $3.4 in                                 
   2011                                                 318.3          296.3
  Inventories                                           205.0          198.0
  Taxes receivable on income                                -           18.5
  Future income tax benefits                             18.2            8.7
  Restricted cash                                        29.4           34.4
  Guaranteed notes receivable                            44.5           40.0
  Other current assets                                   41.5           52.4
                                      
        ------------------------------
  Total current assets                                  881.9          750.7
                                                                            
Facilities, less accumulated depreciation               370.0          357.4
Goodwill                                                365.2          363.9
Long-term future income tax benefits                     61.5           58.8
Investments in unconsolidated joint ventures             19.2           16.5
Intangible assets, net                                   39.4           35.6
Other assets                                             40.1           40.3
                                              ------------------------------
Total Assets                                    $     1,777.3  $     1,623.2
                                              ------------------------------
                                              ------------------------------
                                                                            
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
  Loans payable to banks                        $       123.1  $        26.2
  Accounts payable                                      143.6          137.8
  Accrued payroll                                       103.3          108.1
  Current portion of warranties                          41.2           42.3
  Taxes payable                                           8.3              -
  Indemnification liabilities                            11.6           11.2
  Income tax liabilities                                  3.9            4.9
  Other accrued liabilities                             126.4          121.1
                                              ------------------------------
  Total current liabilities                             561.4          451.6
                                                                            
Long-term debt                                              -           52.0
Post-retirement benefits                                340.8          348.6
Deferred tax liabilities                                 27.9           25.8
Long-term income tax liabilities                         46.1           67.0
Other liabilities                                        39.1           42.4
                                              ------------------------------
Total Liabilities                                     1,015.3          987.4
                                                                            
Total Equity                                            762.0          635.8
                                              ------------------------------
Total Liabilities & Equity                      $     1,777.3  $     1,623.2
                                              ------------------------------
                                              ------------------------------
                                                                            
                            WABCO HOLDINGS INC.                             
                    Consolidated Statement of Cash Flows                    
                                (Unaudited)                                 
                                                                            
                                                         Three Months Ended 
                                                              September 30, 
                                                      ----------------------
(Amounts in millions)                                       2012       2011 
                                                      ----------------------
                                                                            
                                                                            
Operating activities:                                                       
  Net income                                           $    79.5  $    86.9 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation                                            16.4       16.6 
    Amortization of intangibles                              2.9        2.9 
    Equity in earnings of unconsolidated joint                              
     ventures, net of dividends received                     0.8       (1.2)
    Non-cash stock compensation                              3.4        3.6 
    Deferred income tax (expense)/benefit                  (12.8)       0.2 
    Loss on sale or disposal of property, plant &                           
     equipment                                               0.1        0.3 
  Changes in assets and liabilities:                                        
    Accounts receivable, net                                 4.2        3.5 
    Inventories                                              0.3       (8.7)
    Accounts payable                                        (4.4)      (4.1)
    Other accrued liabilities and taxes                     11.8        1.8 
    Other current and long-term assets                      17.7        2.9 
    Other long-term liabilities                             (7.3)      (0.9)
                                                                            
                                                      ----------------------
Net cash provided by operating activities                  112.6      103.8 
                                                      ----------------------
                                                                            
Investing activities:                                                       
  Purchases of property, plant and equipment               (24.5)     (27.3)
  Investments in capitalized software                       (2.2)      (1.8)
  (Acquisitions) / Divestitures - Net                       (5.1)         - 
                                                                            
                                                      ----------------------
Net cash used in investing activities                      (31.8)     (29.1)
                                                      ----------------------
                                                                            
Financing activities:                                                       
  Net borrowings of revolving credit facilities             32.4       52.0 
  Borrowings / (repayments) of long-term debt                0.7       (0.1)
  Net repayments of short-term debt                         (1.9)      (6.4)
  Purchases of treasury stock                              (47.1)     (77.2)
  Dividends to noncontrolling interest holders              (1.7)      (0.9)
  Proceeds from exercise of stock options                    7.3          - 
                                                                            
                                                      ----------------------
Net cash used in financing activities:                     (10.3)     (32.6)
                                                      ----------------------
                                                                            
Effect of exchange rate changes on cash and cash                            
 equivalents                                                 4.7       (5.6)
                                                                            
Net increase in cash and cash equivalents                   75.2       36.4 
Cash and cash equivalents at beginning of period           149.8      108.3 
                                                      ----------------------
Cash and cash equivalents at end of period             $   225.0  $   144.7 
                                                      ----------------------
                                        
              ----------------------
                                                                            
                            WABCO HOLDINGS INC.                             
                    Consolidated Statement of Cash Flows                    
                                (Unaudited)                                 
                                                                            
                                                          Nine Months Ended 
                                                              September 30, 
                                                      ----------------------
(Amounts in millions)                                       2012       2011 
                                                      ----------------------
                                                                            
                                                                            
Operating activities:                                                       
  Net income                                           $   250.4  $   295.1 
  Adjustments to reconcile net income/(loss) to net                         
   cash provided by operating activities:                                   
    Depreciation                                            49.7       49.9 
    Amortization of intangibles                              8.3        8.8 
    Equity in earnings of unconsolidated joint                              
     ventures, net of dividends received                    (1.7)      (4.1)
    Non-cash stock compensation                             11.0       10.1 
    Deferred income tax benefit                            (15.6)     (11.6)
    Loss on sale or disposal of property, plant &                           
     equipment                                               0.1        0.7 
    Indemnification settlements                                -      (23.1)
  Changes in assets and liabilities:                                        
    Accounts receivable, net                               (24.9)     (70.5)
    Inventories                                             (9.3)     (52.5)
    Accounts payable                                         6.8        4.1 
    Other accrued liabilities and taxes                      2.7       40.0 
    Other current and long-term assets                      32.1       15.5 
    Other long-term liabilities                            (27.5)     (16.4)
                                                                            
                                                      ----------------------
Net cash provided by/(used in) operating activities        282.1      246.0 
                                                      ----------------------
                                                                            
Investing activities:                                                       
  Purchases of property, plant and equipment               (60.5)     (59.9)
  Investments in capitalized software                       (6.8)      (5.7)
  (Acquisitions) / Divestitures - Net                       (5.1)         - 
                                                                            
                                                      ----------------------
Net cash used in investing activities                      (72.4)     (65.6)
                                                      ----------------------
                                                                            
Financing activities:                                                       
  Net borrowings / (repayments) of revolving credit                         
   facilities                                               47.4      (11.6)
  Borrowings / (repayments) of long-term debt                0.7       (0.2)
  Net (repayments) / borrowings of short-term debt          (6.2)       4.6 
  Purchases of treasury stock                             (146.9)    (125.4)
  Dividends to noncontrolling interest holders              (4.6)      (3.9)
  Proceeds from exercise of stock options                   21.5       34.7 
                                                                            
                                                      ----------------------
Net cash used in financing activities:                     (88.1)    (101.8)
                                                      ----------------------
                                                                            
Effect of exchange rate changes on cash and cash                            
 equivalents                                                 1.0       (1.0)
                                                                            
Net increase in cash and cash equivalents                  122.6       77.6 
Cash and cash equivalents at beginning of period           102.4       67.1 
                                                      ----------------------
Cash and cash equivalents at end of period                 225.0      144.7 
                                                      ----------------------
                                                                            
                            WABCO HOLDINGS INC.                             
                 Q3 2012 Data Supplement Sheet (Unaudited)                  
                                                                            
                                     Quarter Ended September 30,            
                                      % of             % of                 
                                    Sales/           Sales/      Chg  % Chg 
(Amounts in millions,                  Adj              Adj      vs.    vs. 
 except per share data)       2012   Sales     2011   Sales     2011   2011 
                          --------------------------------------------------
Sales                                                                       
Reported                   $ 588.3          $ 706.3          $(118.0) -16.7%
  Foreign exchange                                                          
   translational effects      66.9                -             66.9        
                          ---------        ---------        ---------       
Adjusted Sales             $ 655.2          $ 706.3          $ (51.1)  -7.2%
                          ---------        ---------        ---------       
                          ---------        ---------        ---------       
                                                                            
Gross Profit                                                                
Reported                   $ 175.2    29.8% $ 204.4    28.9% $ (29.2) -14.3%
  Streamlining costs           1.6              0.5              1.1        
  Separation costs             0.2              0.3             (0.1)       
                          ---------        ---------        ---------       
Performance Gross Profit   $ 177.0    30.1% $ 205.2    29.1% $ (28.2) -13.7%
                                                                            
  Foreign exchange                                                          
   translational effects      21.0                -             21.0        
                          ---------        ---------        ---------       
Adjusted Gross Profit      $ 198.0    30.2% $ 205.2    29.1% $  (7.2)  -3.5%
                          ---------        ---------        ---------       
                          ---------        ---------        ---------       
                                                                            
Selling, Administrative,                                                    
 Product Engineering                                                        
 Expenses and Other                                                         
                                                                            
Reported                   $ 102.0    17.3
% $ 112.0    15.9% $ (10.0)  -8.9%
  Streamlining costs          (1.0)            (0.5)            (0.5)       
  Separation costs            (0.4)            (0.8)             0.4        
                          ---------        ---------        ---------       
Performance Selling,                                                        
 Administrative, Product                                                    
 Engineering Expenses and                                                   
 Other                     $ 100.6    17.1% $ 110.7    15.7% $ (10.1)  -9.1%
                                                                            
  Foreign exchange                                                          
   translational effects      10.8                -             10.8        
                          ---------        ---------        ---------       
Adjusted Selling,                                                           
 Administrative, Product                                                    
 Engineering Expenses and                                                   
 Other                     $ 111.4    17.0% $ 110.7    15.7% $   0.7    0.6%
                          ---------        ---------        ---------       
                          ---------        ---------        ---------       
                                                                            
Operating Income                                                            
Reported                   $  73.2    12.4% $  92.4    13.1% $ (19.2) -20.8%
  Streamlining costs           2.6              1.0              1.6        
  Separation costs             0.6              1.1             (0.5)       
                          ---------        ---------        ---------       
Performance Operating                                                       
 Income                    $  76.4    13.0% $  94.5    13.4%   (18.1) -19.2%
                                                                            
  Foreign exchange                                                          
   translational effects      10.2                -             10.2        
                          ---------        ---------        ---------       
Adjusted Operating Income  $  86.6    13.2% $  94.5    13.4% $  (7.9)  -8.4%
                          ---------        ---------        ---------       
                          ---------        ---------        ---------       
                                                                            
EBIT (Earnings Before                                                       
 Interest and Taxes)                                                        
Reported Operating                                                          
 Income/(Loss)             $  73.2          $  92.4          $ (19.2)       
  Equity in Income of                                                       
   Unconsolidated Joint                                                     
   Venture                     4.1              3.9              0.2        
  Other non-operating                                                       
   expenses, net              (0.8)             0.1             (0.9)       
  Net income attributable                                                   
   to noncontrolling                                                        
   interest                   (2.0)            (3.1)             1.1        
                          ---------        ---------        ---------       
                                                                            
EBIT                       $  74.5    12.7% $  93.3    13.2% $ (18.8) -20.2%
                                                                            
  Streamlining costs           2.6              1.0              1.6        
  Separation costs             1.0              0.8              0.2        
                          ---------        ---------        ---------       
Performance EBIT (Earnings                                                  
 Before Interest and                                                        
 Taxes)                    $  78.1    13.3% $  95.1    13.5% $ (17.0) -17.9%
                                                                            
  Foreign exchange                                                          
   translational effects       9.8                -              9.8        
                          ---------        ---------        ---------       
Adjusted EBIT (Earnings                                                     
 Before Interest and                                                        
 Taxes)                    $  87.9    13.4% $  95.1    13.5% $  (7.2)  -7.6%
                          ---------        ---------        ---------       
                          ---------        ---------        ---------       
                                                                            
Pre-Tax Income                                                              
EBIT                       $  74.5          $  93.3          $ (18.8)       
  Interest                                                                  
   (expense)/income, net      (0.3)            (0.4)             0.1        
                          ---------        ---------        ---------       
                                                                            
Pre-Tax Income             $  74.2          $  92.9          $ (18.7)       
                                                                            
  Streamlining costs           2.6              1.0              1.6        
  Separation costs             1.0              0.8              0.2        
                          ---------        ---------        ---------       
Performance Pre-Tax Income $  77.8          $  94.7          $ (16.9)       
                                                                            
  Tax rate on a                                                             
   performance basis          14.8%            13.5%                        
                                                                            
Net Income Attributable to                                                  
 Company                                                                    
Reported Net Income                                                         
 Attributable to Company   $  77.5          $  83.8          $  (6.3)       
  Streamlining cost, net                                                    
   of tax                      2.2              0.8              1.4        
  Tax items                  (14.3)            (3.1)           (11.2)       
  Separation costs, net of                                                  
   tax and separation                                                       
   related taxes               0.9              0.4              0.5        
                          ---------        ---------        ---------       
Performance Net Income                                                      
 Attributable to Company   $  66.3          $  81.9          $ (15.6)       
                          ---------        ---------        ---------       
                          ---------        ---------        ---------       
                                                                            
Performance Net Income                                                      
 Attributable to Company                                                    
 per Diluted Common Share  $  1.02          $  1.19                         
                                                                            
Common Shares Outstanding                                                   
 - Diluted                    64.9             68.7                         
                                                                            
--------------------------------------------
----------------                
Incremental Gross Profit                                                    
and Operating Income         Gross        Operating                         
Margin                      Profit           Income                         
--------------------------                                                  
Increase in adjusted sales                                                  
 from '11                    (51.1)           (51.1)                        
Increase in adjusted                                                        
 income from '11              (7.2)            (7.9)                        
                          ---------        ---------                        
Incremental Income as a %                                                   
 of Sales                     14.1%            15.4%                        
------------------------------------------------------------                

 
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 30, 2012 Data Supplement Sheet         
                                (Unaudited)                                 
                                 Nine Months Ended September 30,            
                                   % of              % of                 % 
(Amounts in millions,            Sales/            Sales/       Chg     Chg 
 except per share                   Adj               Adj       vs.     vs. 
 data)                     2012   Sales      2011   Sales      2011    2011 
                      ------------------------------------------------------
Sales                                                                       
Reported               $1,880.8          $2,122.2          $ (241.4)  -11.4%
  Foreign exchange                                                          
   translational                                                            
   effects                160.0                 -             160.0         
                      ----------        ----------        ----------        
Adjusted Sales         $2,040.8          $2,122.2          $  (81.4)   -3.8%
                      ----------        ----------        ----------        
                      ----------        ----------        ----------        
                                                                            
Gross Profit                                                                
Reported               $  565.0    30.0% $  618.5    29.1% $  (53.5)   -8.6%
  Streamlining costs        3.7               1.8               1.9         
  Separation costs          0.6               0.8              (0.2)        
                      ----------        ----------        ----------        
Performance Gross                                                           
 Profit                $  569.3    30.3% $  621.1    29.3% $  (51.8)   -8.3%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 51.0                 -              51.0         
                      ----------        ----------        ----------        
Adjusted Gross Profit  $  620.3    30.4% $  621.1    29.3% $   (0.8)   -0.1%
                      ----------        ----------        ----------        
                      ----------        ----------        ----------        
                                                                            
Selling,                                                                    
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other                                                         
                                                                            
Reported               $  309.5    16.5% $  339.0    16.0% $  (29.5)   -8.7%
  Streamlining costs       (3.9)             (0.5)             (3.4)        
  Separation costs         (1.2)             (2.2)              1.0         
  UK pension                                                                
   adjustment               4.3                 -               4.3         
                      ----------        ----------        ----------        
Performance Selling,                                                        
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other    $  308.7    16.4% $  336.3    15.8% $  (27.6)   -8.2%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 25.3                 -              25.3         
                      ----------        ----------        ----------        
Adjusted Selling,                                                           
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other    $  334.0    16.4% $  336.3    15.8% $   (2.3)   -0.7%
                      ----------        ----------        ----------        
                      ----------        ----------        ----------        
                                                                            
Operating Income                                                            
Reported               $  255.5    13.6% $  279.5    13.2% $  (24.0)        
  Streamlining costs        7.6               2.3               5.3         
  Separation costs          1.8               3.0              (1.2)        
  UK pension                                                                
   adjustment              (4.3)                -              (4.3)        
                      ----------        ----------        ----------        
Performance Operating                                                       
 Income                $  260.6    13.9% $  284.8    13.4% $  (24.2)   -8.5%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 25.7                 -              25.7         
                      ----------        ----------        ----------        
Adjusted Operating                                                          
 Income                $  286.3    14.0% $  284.8    13.4% $    1.5     0.5%
                      ----------        ----------        ----------        
                      ----------        ----------        ----------        
                                                                            
EBIT (Earnings Before                                                       
 Interest and Taxes)                                                        
Reported Operating                                                          
 Income                $  255.5          $  279.5          $  (24.0)        
  Equity in Income of                                                       
   Unconsolidated                                                           
   Joint Venture       $   13.8              12.4               1.4         
  Other non-operating                                        
               
   expenses, net       $   (2.0)             (1.7)             (0.3)        
  Indemnification and                                                       
   Other settlements   $      -              23.1             (23.1)        
  Net income                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest            $   (8.1)             (8.0)             (0.1)        
                      ----------        ----------        ----------        
                                                                            
EBIT                   $  259.2    13.8% $  305.3    14.4% $  (46.1)  -15.1%
                                                                            
  Streamlining costs        7.6               2.3               5.3         
  Separation costs          3.0             (19.5)             22.5         
  UK pension                                                                
   adjustment              (4.3)                -              (4.3)        
                      ----------        ----------        ----------        
Performance EBIT                                                            
 (Earnings Before                                                           
 Interest and Taxes)   $  265.5    14.1% $  288.1    13.6% $  (22.6)   -7.8%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 24.5                 -              24.5         
                      ----------        ----------        ----------        
Adjusted EBIT                                                               
 (Earnings Before                                                           
 Interest and Taxes)   $  290.0    14.2% $  288.1    13.6% $    1.9     0.7%
                      ----------        ----------        ----------        
                      ----------        ----------        ----------        
                                                                            
Pre-Tax Income/(Loss)                                                       
EBIT                   $  259.2          $  305.3          $  (46.1)        
  Interest expense,                                                         
   net                     (1.2)             (1.6)              0.4         
                      ----------        ----------        ----------        
                                                                            
Pre-Tax Income/(Loss)  $  258.0          $  303.7          $  (45.7)        
                                                                            
  Streamlining costs        7.6               2.3               5.3         
  Separation costs          3.0             (19.5)             22.5         
  UK pension                                                                
   adjustment              (4.3)                -              (4.3)        
                      ----------        ----------        ----------        
Performance Pre-Tax                                                         
 Income                $  264.3          $  286.5          $  (22.2)        
                                                                            
  Tax rate on a                                                             
   performance basis       16.0%             15.0%                          
                                                                            
Net Income                                                                  
 Attributable to                                                            
 Company                                                                    
Reported Net Income                                                         
 Attributable to                                                            
 Company               $  242.3          $  287.1          $  (44.8)        
  Streamlining cost,                                                        
   net of tax               6.5               2.3               4.2         
  Tax items               (26.0)            (23.9)             (2.1)        
  Separation costs,                                                         
   net of tax and                                                           
   separation related                                                       
   taxes                    2.4             (20.5)             22.9         
  UK pension                                                                
   adjustment, net of                                                       
   tax                     (3.2)                -              (3.2)        
                      ----------        ----------        ----------        
Performance Net Income $  222.0          $  245.0          $  (23.0)        
                      ----------        ----------        ----------        
                      ----------        ----------        ----------        
                                                                            
Performance Net Income                                                      
 per Diluted Common                                                         
 Share                 $   3.38          $   3.53                           
                                                                            
Common Shares                                                               
 Outstanding - Diluted     65.6              69.5                           

 
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 Free Cash Flow                  
                                (Unaudited)                                 
                                                                            
                                                                            
                                     Three Months Ended   Nine Months Ended 
(Amounts in millions)                     September 30,       September 30, 
                                    ----------------------------------------
                                         2012      2011      2012      2011 
                                    ----------------------------------------
                                                                            
Net Cash Provided by Operating                                              
 Activities                          $  112.6  $  103.8  $  282.1  $  246.0 
                                                                            
Deductions or Additions to Reconcile                                        
 to Free Cash Flow:                                                         
Net purchases of property, plant,                                           
 equipment and computer software        (26.7)    (29.1)    (67.3)    (65.6)
                                    ----------------------------------------
                                                                            
Free Cash Flow                       $   85.9  $   74.7  $  214.8  $  180.4 
                                    ----------------------------------------
                                    ----------------------------------------
                                                                            
  Less: Streamlining & separation                                           
   payments                          $   (4.3) $   (4.3) $  (10.7) $   (9.0)
                                    ----------------------------------------
                                                                            
Free Cash Flow excluding                                                    
 streamlining & separation payments  $   90.2  $   79.0  $  225.5  $  189.4 
                                    ----------------------------------------
                                    ----------------------------------------

 
Note: This statement reconciles net cash provided by operating
activities to free cash flow. 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 2012   
                                  Guidance                                  
                                (Unaudited)                                 
                                                                            
                                                                            
                                                                            
(Amounts in millions, except per                                            
 share data)                                 Previous              Updated  
                                       Full Year 2012       Full Year 2012  
                                             Guidance             Guidance  
                                  ------------------------------------------
                                                                            
Operating Income                                                            
                                                                            
Reported Operating Income Margin         12.5% - 13.5%        13.1% - 13.3% 
  Streamlining cost, impact to                                              
   margin                                         0.4%                 0.4% 
  Separation costs, impact to                                               
   margin                                         0.1%                 0.1% 
  UK pension adjustment, impact to                                          
   margin                                        (0.2%)               (0.2%)
                                  ------------------------------------------
Performance Operating Income                                                
 Margin                                  12.8% - 13.8%        13.4% - 13.6% 
                                  ------------------------------------------
                                  ------------------------------------------
                                                                            
Net Income Attributable to Company                                          
                                                                            
Reported Net Income Attributable                                            
 to Company                        $   289.4 - $322.1   $   296.3 - $302.8  
  Streamlining cost, net of tax                   8.0                  9.4  
  Tax items                                     (15.6)               (26.2) 
  Separation costs, net of tax and                                          
   separation related taxes                       3.1                  3.2  
  UK pension adjustment, net of                                             
   tax                                           (3.2)                (3.2) 
                                  ------------------------------------------
Performance Net Income                                                      
 Attributable to Company           $   281.7 - $314.4   $   279.5 - $286.0  
                                  ------------------------------------------
                                  ------------------------------------------
                                                                            
                                                                            
Reported Net Income Attributable                                            
 to Company per Diluted Common                                              
 Share                             $     4.42 - $4.92   $     4.54 - $4.64  
                                                                            
Performance Net Income                                                      
 Attributable to Company per                                                
 Diluted Common Share              $     4.30 - $4.80   $     4.28 - $4.38  
                                                                            
Diluted common shares outstanding        approx. 65.5         approx. 65.3  

 
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. 
Contacts:
Media, investors and analysts:
WABCO Holdings Inc.
Jason Campbell
+1 732 369 7477
jason.campbell@wabco-auto.com
www.wabco-auto.com
 
 
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