WABCO Reports Q1 2014 Results; Strongly Outperforms Volatile Global Commercial Vehicle Market; Reiterates Guidance for 2014

WABCO Reports Q1 2014 Results; Strongly Outperforms Volatile Global Commercial 
Vehicle Market; Reiterates Guidance for 2014 
- Q1 2014 sales of $729.5 million, up 12.7 percent in local
currencies and up 13.2 percent in U.S. dollars from a year ago 
- Q1 2014 operating margin of 12.3 percent on a performance basis
versus 13.6 percent a year ago; operating margin of 11.5 percent on a
U.S. GAAP basis versus 12.7 percent a year ago 
- Q1 2014 diluted EPS of $1.28 on a performance basis, up from $1.17
a year ago; diluted EPS of $1.12 on a U.S. GAAP basis versus $1.15 a
year ago 
- Reiterates guidance for full year 2014; sales growth to range from
6 to 11 percent in local currencies; diluted EPS on a performance
basis to range from $5.30 to $5.80 and diluted EPS on a U.S. GAAP
basis to range from $4.78 to $5.28; from 80 to 90 percent of net
income attributable to the company to be converted into free cash
flow, excluding payments associated with streamlining, separation and
acquisition activities 
BRUSSELS, BELGIUM -- (Marketwired) -- 04/25/14 --  WABCO Holdings
Inc. (NYSE: WBC) (www.wabco-auto.com), a leading global supplier of
technologies to improve the safety and efficiency of commercial
vehicles, today reported Q1 2014 sales of $729.5 million, up 12.7
percent in local currencies from a year ago and up 13.2 percent in
U.S. dollars, including the consolidated results in local currencies
from February 12 through March 31, 2014, of Transics International,
WABCO's previously disclosed acquisition. 
"In Q1 2014, even though levels of truck and bus production in
different regions around the world remained uncertain and volatile,
we further increased WABCO content per vehicle and grew market share,
generating nearly 10 percent of market outperformance globally," said
Jacques Esculier, WABCO Chairman and Chief Executive Officer. "In Q1
2014, WABCO set a new quarterly record for global aftermarket sales,
even excluding consolidated results from Transics International, a
leading provider of fleet management solutions in Europe that we
acquired in mid-February 2014." 
WABCO reported Q1 2014 performance operating income of $89.8 million,
up from $87.6 million a year ago, and operating income was $84.2
million on a U.S. GAAP basis, up from $81.7 million a year ago. 
WABCO's performance operating margin for Q1 2014 was 12.3 percent
versus 13.6 percent a year ago, and operating margin was 11.5 percent
on a U.S. GAAP basis versus 12.7 percent a year ago. 
"In Q1 2014, WABCO demonstrated solid growth and further strengthened
profitability by a new record quarterly gain of $21.4 million of
materials and conversion productivity, while also continuing to
contain price erosion. However, as expected, performance operating
margin continued to be affected by stiff headwinds arising from
ongoing unfavorable currency transactional dynamics," said Esculier.
"WABCO's Operating System, our global management environment,
continued to enable fast and flexible responses to market changes
throughout Q1 2014 as it generated gross materials productivity of
5.8 percent and conversion productivity of 6.3 percent, both
continued robust results." 
For Q1 2014, WABCO reported performance net income attributable to
the company of $79.3 million or $1.28 per diluted share, up from
$74.9 million or $1.17 per diluted share a year ago, and Q1 2014 U.S.
GAAP net income attributable to the company of $69.4 million or $1.12
per diluted share versus $73.7 million or $1.15 per diluted share a
year ago.  
During Q1 2014, WABCO generated $45.9 million in net cash from
operating activities and $27.9 million of free cash flow, excluding
payments of $5.2 million for streamlining, separation and acquisition
activities, resulting in a seasonally lower quarterly conversion rate
of 35 percent of performance net income attributable to the company. 
Since June 2011, WABCO has repurchased 11,133,550 shares for $720.6
million in open market transactions as of March 31, 2014. WABCO is
authorized to repurchase up to $279.4 million of additional shares
through December 31, 2014. 
Recent Highlights  
On April 16, 2014, WABCO announced that from Q2 2013 to Q1 2014 it
has entered into contracts with customers globally totaling $1
billion of expected cumulative incremental business, including $620
million from 2014 through 2018, up from $548 million reported a year
ago for the period from 2013 through 2017. These contracts represent
new incremental business, separate from replacement and renewal of
existing contracts. It comprises orders for WABCO technologies and
products that improve vehicle safety and efficiency. Economic
conditions permitting, WABCO expects that its sales growth will
continue to outperform market growth of truck and bus production by a
compound annual growth rate of 8 to 10 percent through 2018. 
In Q1 2014, WABCO announced that it had acquired Transics
International N.V., a market leader in Europe of fleet management
solutions headquartered in Ypres, Belgium. Transics International
helps commercial vehicle fleet operators to effectively and more
efficiently manage their trucks, trailers, drivers, cargo and orders
in real-time. Transics International currently serves more than 1,300
road transport and logistics companies across Europe connecting over
85,000 vehicles. The company's innovative suite of fleet management
solutions helps improve operational efficiency, customer service and
fleet productivity while lowering operating costs. The synergy of
WABCO and Transics aligns with a WABCO strategic objective to expand
business relationships with fleets around the world.  
In Q1 2014, WABCO disclosed that it has formed a strategic alliance
with SmartDrive Systems, a leader in performance management solutions
that help fleets to reduce collisions and lower fuel consumption,
enabling WABCO to expand such service to commercial vehicle fleets in
North America. WABCO and SmartDrive Systems will integrate their
breakthrough products and services to enhance the safety, efficiency
and operational productivity of commercial vehicle fleet operators.
As a result, North American joint venture Meritor WABCO and
SmartDrive Systems disclosed that they are developing the industry's
most comprehensive performance management system, which will be
available in May 2014. ProView Powered by SmartDrive(R) provides
unprecedented insights into driving situations through video-based
analysis, personalized driving performance improvement programs and
predictive analytics. SmartDrive Systems fleets have reduced
collision costs up to 70 percent after 12 months and achieved fuel
savings up to 10 percent. 
WABCO's factory in Rayong, Thailand, continued during Q1 2014 to
rapidly ramp up volume of braking system components to support the
new Asian truck platform of a major global commercial vehicle
manufacturer operating in Thailand, one of the member states of the
regional Association of Southeast Asian Nations. ASEAN comprises 10
markets where demand for locally produced trucks is expected to grow
strongly in future years. Customers based in ASEAN require more than
40 percent of the content value of their new vehicles to be produced
within the region itself. In another development, the largest global
original equipment maker located in the ASEAN region has awarded
WABCO a long-term supply contract for braking products to support a
new regional truck platform. WABCO's factory in Rayong is the
company's newest manufacturing facility, bringing WABCO's total
number of manufacturing sites to 21 across 11 countries. 
In Q1 2014, North American joint venture Meritor WABCO introduced
North America's first fuel-saving electronic air processing
technology for trucks. This breakthrough connectivity technology
combines innovative System Saver(TM) 1200 Plus air dryer technology
with electronic fuel-saving software stored in Meritor WABCO's
anti-lock braking system. Integration of these advanced technologies
with the breakthrough solution reduces system cost for original
equipment manufacturers and it helps fleets improve fuel efficiency
at a minimal cost. 
On April 14, 2014, the company reported that WABCO was named in
Institutional Investor's 2014 All-America Executive Team. WABCO was
cited among the top 3 in its sector for "Best CEO," according to this
survey by Institutional Investor, a leading international
business-to-business publisher. The 2014 All-America Executive Team
reflects the opinions of more than 1,400 buy-side analysts and
portfolio managers at over 625 firms and financial institutions as
well as roughly 1,200 sell-side analysts at brokerages and
independent investment firms. WABCO earned the 3rd place for "Best
CEO" by sell-side analysts in both the 2014 and 2013 All-America
Executive Team rankings. 
WABCO reported on April 8, 2014, that it has appointed Prashanth
Mahendra-Rajah to the role of Chief Financial Officer (CFO) starting
June 3, 2014. Prashanth Mahendra-Rajah brings to WABCO over 20 years
of experience gained from senior finance roles in a broad range of
multinational and high-tech enterprises, including VISA, as well as
United Technologies Corporation and its subsidiaries Carrier
Corporation and Pratt & Whitney. He has held leadership positions
located in Asia, Europe and North America. Most recently, Prashanth
Mahendra-Rajah served as CFO of the Silicon Systems Group, a $6
billion division of Applied Materials, based in Santa Clara,
California.  
WABCO reported in Q1 2014 that Dr. Leon Liu, President, WABCO Asia,
has been named among the "Top 100 New Leaders" in China's economy in
2013 by China Economic News, a leading business magazine published in
China. This prestigious award further recognizes WABCO's continued
growth and success in China. It commends Dr. Liu's leadership for a
decade during which WABCO has further solidified its position in
China as the supplier of choice for new technologies and control
systems that help original equipment manufacturers to develop and
build safer and more efficient trucks, buses and trailers. Dr. Liu
was the only executive in the Chinese commercial vehicle industry
named.  
WABCO Reiterates Full Year 2014 Guidance  
Based on our current estimates of future market conditions, WABCO
reiterates its previously disclosed guidance for full year 2014.
WABCO expects full year 2014 sales growth to range from 6 to 11
percent in local currencies; performance operating margin to range
from 12.8 to 13.6 percent; and operating margin on a U.S. GAAP basis
to range from 12.4 to 13.2 percent, resulting in diluted EPS on a
performance basis to range from $5.30 to $5.80 and diluted EPS on a
U.S. GAAP basis to range from $4.78 to $5.28. 
WABCO also expects in 2014 to convert between 80 and 90 percent of
its net income attributable to the company into free cash flow,
excluding payments associated with streamlining, separation and
acquisition activities. 
"Moving ahead, WABCO's differentiation will further strengthen our
leadership position as preferred supplier in the global commercial
vehicle industry through our three-pillar strategy of technology
leadership, globalization and excellence in execution," said
Esculier. "Indeed, we remain committed to bring customers
cost-effective, value-based solutions. We also expect to continue to
outperform the market globally and deliver outstanding value for
WABCO's shareowners." 
Conference Call  
Jacques Esculier, Chairman and Chief Executive Officer, and Jason
Campbell, Controller and interim Chief Financial Officer, 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 Q1 2014 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 April 25 until midnight May 1, 2014. Replay dial-in number is +1
404 537 3406 and U.S. toll-free dial-in number is 855 859 2056.
Conference ID is 13969214. 
About WABCO 
WABCO (NYSE: WBC) is a leading global supplier of technologies and
control systems for the safety and efficiency of commercial vehicles.
Founded nearly 150 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 $2.7 billion in 2013, 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, our ability to successfully integrate any acquired
businesses or our acquired businesses not performing as planned 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 Q1 2014 results, several tables
follow this news release. Sales excluding the effects of foreign
exchange 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, 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  


 
 
--  Condensed Consolidated Statements of Operations 
--  Condensed Consolidated Balance Sheets 
--  Condensed Consolidated Statements of Cash Flows 
--  Q1 2014 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 2014
    Guidance 
 
                                                                            
                    WABCO HOLDINGS INC. AND SUBSIDIARIES                    
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (Unaudited)                                 
                                                                            
                                                                            
                                                      Three Months Ended    
                                                          March 31,         
                                                                            
                                                          2014         2013 
                                                  --------------------------
(Amounts in millions, except share and per share                            
 data)                                                                      
Sales                                              $     729.5  $     644.7 
Cost of sales                                            511.6        447.0 
                                                  --------------------------
Gross profit                                             217.9        197.7 
Costs and expenses:                                                         
  Selling and administrative expenses                     92.8         82.5 
  Product engineering expenses                            36.3         30.3 
  Other operating expense, net                             4.6          3.2 
                                                  --------------------------
Operating income                                          84.2         81.7 
                                                                            
  Equity income of unconsolidated joint ventures,                           
   net                                                     5.7          2.9 
  Other non-operating expense, net                        (2.3)        (0.1)
  Interest income/(expense), net                           0.1         (0.3)
                                                  --------------------------
Income before income taxes                                87.7         84.2 
                                                                            
Income tax expense                                        15.8          8.2 
                                                  --------------------------
Net income including noncontrolling interests             71.9         76.0 
                                                                            
  Less: Net income attributable to noncontrolling                           
   interests                                               2.5          2.3 
                                                  --------------------------
Net income attributable to Company                 $      69.4  $      73.7 
                                                                            
                                                                            
Net income attributable to Company per common                               
 share                                                                      
  Basic                                            $      1.13  $      1.17 
  Diluted                                          $      1.12  $      1.15 
Cash dividend per share of common stock            $         -  $         - 
Weighted average common shares outstanding                                  
  Basic                                             61,268,511   62,921,412 
  Diluted                                           61,988,737   64,071,002 
                                                                            
                    WABCO HOLDINGS INC. AND SUBSIDIARIES                    
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                                            
                                                     March 31, December 31, 
(Amounts in millions, except share data)                  2014         2013 
----------------------------------------------------------------------------
                                                   (Unaudited)              
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents                        $     341.9  $     472.8 
  Short-term investments                                  55.1         55.2 
  Accounts receivable, less allowance for doubtful                          
   accounts: $4.8 in 2014; $5.0 in 2013                  420.7        346.2 
  Inventories:                                                              
    Finished products                                    105.3         93.9 
    Products in process                                    9.4          7.2 
    Raw materials                                        105.4        106.1 
  Future income tax benefits                              10.7         10.4 
  Restricted cash                                         26.4         34.6 
  Guaranteed notes receivable                             62.3         51.4 
  Other current assets                                    78.9         56.8 
                                                  --------------------------
  Total current assets                                 1,216.1      1,234.6 
                                                                            
Property, plant and equipment, less accumulated                             
 depreciation                                            422.8        422.5 
Goodwill                                                 461.4        381.2 
Long-term future income tax benefits                     244.6        248.9 
Investments in unconsolidated joint ventures              19.9         19.9 
Intangible assets, net                                   120.0         44.3 
Other assets                                              43.4         41.4 
                                                  --------------------------
TOTAL ASSETS                                       $   2,528.2  $   2,392.8 
                                                  ==========================
                                                                            
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
  Loans payable to banks                           $      29.2  $      40.1 
  Accounts payable                                       184.6        149.3 
  Accrued payroll                                        112.6        118.8 
  Current portion of warranties                           30.4         29.8 
  Taxes payable                                           13.7          3.8 
  Accrued expenses                                        57.2         58.7 
  Other accrued liabilities                              116.7         84.9 
                                                  --------------------------
  Total current liabilities                              544.4        485.4 
                                                                            
Long-term debt                                           117.0         47.0 
Post-retirement benefits                                 436.2        438.6 
Deferred tax liabilities                                 135.6        120.1 
Long-term income tax liabilities                          45.5         45.3 
Other liabilities                                         63.3         59.0 
                                                  --------------------------
Total Liabilities                                      1,342.0      1,195.4 
Shareholders' equity:                                                       
  Preferred stock, 4,000,000 shares authorized;                             
   none issued and outstanding                                              
  Common stock, $.01 par value, 400,000,000 shares                          
   authorized; shares issued: 77,815,885 in 2014;                           
   77,471,174 in 2013; and shares outstanding:                              
   60,725,529 in 2014; 61,359,025 in 2013                  0.8          0.8 
  Capital Surplus                                        812.5        800.2 
  Treasury stock, at cost: 17,090,356 shares in                             
   2014; 16,112,149 shares in 2013                      (996.9)      (896.6)
  Retained earnings                                    1,441.2      1,371.8 
  Accumulated other comprehensive income                                    
    Foreign currency translation adjustments             (15.9)       (14.4)
    Unrealized losses on benefit plans, net of tax      (108.0)      (109.0)
    Unrealized gains on investments                        0.1          0.0 
                                                  --------------------------
Total shareholders' equity                             1,133.8      1,152.8 
Noncontrolling interests                                  52.4         44.6 
                                                  --------------------------
Total equity                                           1,186.2      1,197.4 
                                                  --------------------------
TOTAL LIABILITIES AND EQUITY                       $   2,528.2  $   2,392.8 
                                                  ==========================
                                                                            
                    WABCO HOLDINGS INC. AND SUBSIDIARIES                    
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                                (Unaudited)                                 
                                                                            
                                                      Three Months Ended    
                                                          March 31,         
                                                  --------------------------
                                                          2014         2013 
                                                  --------------------------
(Amounts in millions)                                                       
Operating activities:                                                       
  Net income including noncontrolling interests    $      71.9  $      76.0 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation                                          21.4         18.3 
    Amortization of intangibles                            3.0          3.0 
    Equity in (losses)/earnings of unconsolidated                           
     joint ventures, net of dividends received            (0.6)         0.7 
    Non-cash stock compensation                            3.4          3.2 
    Deferred income tax benefit/(expense)                  0.9         (1.0)
    Loss on sale or disposal of property, plant                             
     and equipment                                         0.2            - 
  Changes in assets and liabilities:                                        
    Accounts receivable, net                             (60.2)       (53.2)
    Inventories                                          (10.4)       (14.8)
    Accounts payable                                      26.1         45.1 
    Other accrued liabilities and taxes                    8.0         (3.8)
    Other current and long-term assets                   (18.7)        (8.2)
    Other long-term liabilities                            0.9         (1.3)
                                                  --------------------------
Net cash provided by operating activities                 45.9         64.0 
                                                  --------------------------
Investing activities:                                                       
  Purchases of property, plant and equipment             (19.5)       (15.5)
  Investments in capitalized software                     (3.7)        (4.9)
  Acquisitions, net                                     (124.6)           - 
                                                  --------------------------
Net cash used in investing activities                   (147.8)       (20.4)
                                                  --------------------------
Financing activities:                                                       
  Net borrowings/(repayments) of revolving credit                           
   facilities                                             70.0        (13.1)
  Net (repayments)/borrowings of short-term debt         (13.7)         2.3 
  Purchases of treasury stock                            (92.0)       (43.8)
  Dividends to noncontrolling interest holders            (1.1)        (1.3)
  Proceeds from exercise of stock options                 10.3         15.7 
                                                  --------------------------
Net cash used in financing activities                    (26.5)       (40.2)
                                                  --------------------------
Effect of exchange rate changes on cash and cash                            
 equivalents                                              (2.5)        (2.7)
                                                  --------------------------
Net (decrease)/increase in cash and cash                                    
 equivalents                                            (130.9)         0.7 
Cash and cash equivalents at beginning of period         472.8        175.0 
                                                  --------------------------
Cash and cash equivalents at end of period         $     341.9  $     175.7 
                                                  ==========================
                                                                            
                            WABCO HOLDINGS INC.                             
                 Q1 2014 Data Supplement Sheet (Unaudited)                  
                                                                            
                                     Quarter Ended March 31,                
(Amounts in millions,      2014    % of      2013    % of   Chg vs.   % Chg 
 except per share                Sales/            Sales/      2013     vs. 
 data)                              Adj               Adj              2013 
                                  Sales             Sales                   
                      ------------------------------------------------------
Sales                                                                       
Reported               $  729.5          $  644.7          $   84.8    13.2%
  Foreign exchange                                                          
   translational                                                            
   effects                 (3.2)                -              (3.2)        
                      ----------        ----------        ----------        
Adjusted Sales         $  726.3          $  644.7          $   81.6    12.7%
                      ==========        ==========        ==========        
                                                                            
Gross Profit                                                                
Reported               $  217.9    29.9% $  197.7    30.7% $   20.2    10.2%
  Streamlining costs        3.1               2.9               0.2         
  Separation costs          0.1               0.2              (0.1)        
                      ----------        ----------        ----------        
Performance Gross                                                           
 Profit                $  221.1    30.3% $  200.8    31.1% $   20.3    10.1%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 (3.0)                -              (3.0)        
                      ----------        ----------        ----------        
Adjusted Gross Profit  $  218.1    30.0% $  200.8    31.1% $   17.3     8.6%
                      ==========        ==========        ==========        
                                                                            
Selling,                                                                    
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other                                                         
Reported               $  133.7    18.3% $  116.0    18.0% $   17.7    15.3%
  Streamlining costs       (0.6)             (2.3)              1.7         
  Separation costs         (1.8)             (0.5)             (1.4)        
Performance Selling,                                                        
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other    $  131.3    18.0% $  113.2    17.6% $   18.0    15.9%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 (2.7)                -              (2.7)        
                      ----------        ----------        ----------        
Adjusted Selling,                                                           
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other    $  128.6    17.7% $  113.2    17.6% $   15.3    13.5%
                      ==========        ==========        ==========        
                                                                            
Operating Income                                                            
Reported               $   84.2    11.5% $   81.7    12.7% $    2.5     3.1%
  Streamlining costs        3.7               5.2              (1.5)        
  Separation and                                                            
   performance                                                              
   adjustments              1.9               0.7               1.2         
Performance Operating                                                       
 Income                $   89.8    12.3% $   87.6    13.6%      2.2     2.5%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 (0.3)                -              (0.3)        
                      ----------        ----------        ----------        
Adjusted Operating                                                          
 Income                $   89.5    12.3% $   87.6    13.6% $    1.9     2.2%
                      ==========        ==========        ==========        
                                                                            
EBIT (Earnings Before                                                       
 Interest and Taxes)                                                        
Reported Operating                                                          
 Income/(Loss)         $   84.2          $   81.7          $    2.5         
  Equity in Income of                                                       
   Unconsolidated                                                           
   Joint Venture            5.7               2.9               2.8         
  Other non-operating                                                       
   expense, net            (2.3)             (0.1)             (2.2)        
  Net income                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest                (2.5)             (2.3)             (0.2)        
                      ----------        ----------        ----------        
                                                                            
EBIT                   $   85.1    11.7% $   82.2    12.8% $    2.9     3.5%
                                                                            
  Streamlining costs        3.7               5.2              (1.5)        
  Separation and                                                            
   performance                                                              
   adjustments              4.3               1.0               3.3         
Performance EBIT                                                            
 (Earnings Before                                                           
 Interest and Taxes)   $   93.1    12.8% $   88.4    13.7% $    4.7     5.3%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects                 (0.4)                -              (0.4)        
                      ----------        ----------        ----------        
Adjusted EBIT                                                               
 (Earnings Before                                                           
 Interest and Taxes)   $   92.7    12.8% $   88.4    13.7% $    4.3     4.9%
                      ==========        ==========        ==========        
                                                                            
Pre-Tax Income                                                              
EBIT                   $   85.1          $   82.2          $    2.9         
  Interest                                                                  
   (expense)/income,                                                        
   net                      0.1              (0.3)              0.4         
                      ----------        ----------        ----------        
                                                                            
Pre-Tax Income         $   85.2          $   81.9          $    3.3         
                                                                            
  Streamlining costs        3.7               5.2              (1.5)        
  Separation and                                                            
   performance                                                              
   adjustments              4.3               1.0               3.3         
Performance Pre-Tax                                                         
 Income                $   93.2          $   88.1          $    5.1         
                                                                            
  Tax rate on a                                                             
   performance basis       14.9%             15.0%                          
                                                                            
Net Income                                                                  
 Attributable to                                                            
 Company                                                                    
Reported Net Income                                                         
 Attributable to                                                            
 Company               $   69.4          $   73.7          $   (4.3)        
  Streamlining cost,                                                        
   net of tax               2.5               4.3              (1.8)        
  Tax items                 4.0              (3.9)              7.9         
  Separation and                                                            
   performance                                                              
   adjustments, net of                                                      
   tax and separation                                                       
   related taxes            3.4               0.8               2.6         
                      ----------        ----------        ----------        
Performance Net Income                                                      
 Attributable to                                                            
 Company               $   79.3          $   74.9          $    4.4         
                      ==========        ==========        ==========        
                                                                            
Performance Net Income                                                      
 Attributable to                                                            
 Company per Diluted                                                        
 Common Share          $   1.28          $   1.17                           
                                                                            
Common Shares                                                               
 Outstanding - Diluted     62.0              64.1                           
                                                                            
----------------------------------------------------------                  
Incremental Gross                                                           
Profit and Operating      Gross         Operating                           
Income Margin            Profit            Income                           
Increase in adjusted                                                        
 sales from '13            81.6              81.6                           
Increase in adjusted                                                        
 income from '13           17.3               1.9                           
                      ----------        ----------                          
Incremental Income as                                                       
 a % of Sales              21.2%              2.3%                          
YoY Transactional                                                           
 Foreign Exchange (FX)                                                      
 Impact                                       6.3                           
                                        ----------                          
Increase in adjusted                                                        
 income from '13                                                            
 excluding                                                                  
 transactional FX                                                           
 impact                                       8.2                           
Incremental income                                                          
 excluding                                                                  
 transactional FX as a                                                      
 % of Sales                                  10.0%                          
----------------------------------------------------------                  

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 
(Amounts in millions)                                             March 31, 
                                                      ----------------------
                                                            2014       2013 
                                                      ----------------------
                                                                            
Net Cash Provided by Operating Activities              $    45.9  $    64.0 
                                                                            
Deductions or Additions to Reconcile to Free Cash                           
 Flow:                                                                      
Net purchases of property, plant, equipment and                             
 computer software                                         (23.2)     (20.4)
                                                      ----------------------
                                                                            
Free Cash Flow                                         $    22.7  $    43.6 
                                                      ======================
                                                                            
Less: Streamlining, separation & acquisition related                        
 payments                                                   (5.2)      (5.8)
                                                      ----------------------
                                                                            
Free Cash Flow excluding streamlining, separation &                         
 acquisition related payments                          $    27.9  $    49.4 
                                                      ======================

Note: This statement reconciles net cash provided by operating
activities to free cash flow. Management uses free cash flow and free
cash flow excluding streamlining and separation payments, which are
not defined by US GAAP, to measure the Company's operating
performance. Free cash flow excluding streamlining and separation
payments is also one of the several measures used to determine
incentive compensation for certain employees.  


 
 
  Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year 2014  
                                  Guidance                                  
                                (Unaudited)                                 
                                                                            
                                                                            
                                                                            
(Amounts in millions, except per share data)                                
                                                             Full Year 2014 
                                                                   Guidance 
                                                          ------------------
                                                                            
Operating Income                                                            
                                                                            
Reported Operating Income Margin                               12.4% - 13.2%
  Streamlining cost, impact to margin                                   0.2%
  Separation costs, impact to margin                                    0.2%
                                                          ------------------
Performance Operating Income Margin                            12.8% - 13.6%
                                                          ==================
                                                                            
Net Income Attributable to Company                                          
                                                                            
Reported Net Income Attributable to Company                 $291.5 - $322.0 
  Streamlining cost, net of tax                                        12.8 
  Tax items                                                            18.0 
  Separation costs, net of tax and separation related                       
   taxes                                                                1.0 
                                                          ------------------
Performance Net Income Attributable to Company              $323.3 - $353.8 
                                                          ==================
                                                                            
                                                                            
Reported Net Income Attributable to Company per Diluted                     
 Common Share                                                 $4.78 - $5.28 
                                                                            
Performance Net Income Attributable to Company per Diluted                  
 Common Share                                                 $5.30 - $5.80 
                                                                            
Diluted common shares outstanding                                approx. 61 

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.
Christian Fife
+1 732 369 7465
christian.fife@wabco-auto.com
www.wabco-auto.com
 
 
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