WABCO FY18 EPS To Be In Lower Half Of Prior Guidance - Quick Facts

(RTTNews) - WABCO Holdings Inc. (WBC) announced, as a result of the economic and political conditions, the company expects to end in the lower half of its previously issued EPS guidance for the full year 2018. WABCO estimates the impact to the second half of 2018 reported and performance EPS to be approximately $0.20, spread evenly over the third and fourth quarters. Additionally, WABCO anticipates product engineering expenses will be more concentrated in the third quarter resulting in up to a $0.10 reported and performance EPS headwind with no impact to the full year outlook.

The company noted that the recent intensification of geopolitical dynamics is negatively impacting markets and currencies in some of WABCO's regions. WABCO now expects that truck and bus production in China will deteriorate by approximately 30 percent in the second half of 2018 and 11 percent on a full year basis, compared to 2017. In addition, this is causing a slowdown in demand from Russia and Turkey.

"As a result of efficiencies generated within WABCO's supply chain and through cost management activities, we expect to stay within our previous full year guidance, coming in towards the lower half of the range, despite intensifying economic headwinds. This outlook does not consider any tax tailwinds that may materialize in the second half," said Jacques Esculier, WABCO CEO.