- Company trades under symbol NYSE: WBC
- WABCO directors declare quarterly dividend of 7 cents per share and
authorize $500 million stock repurchase program
NEW YORK and BRUSSELS, Belgium, Aug. 1 /CNW/ -- WABCO (NYSE: WBC), a
leading global provider of electronic braking, stability, suspension and
transmission control systems for commercial vehicles, will make its debut on
the New York Stock Exchange today, trading under the symbol WBC.
WABCO, with revenues of approximately $2 billion in 2006, previously
operated as the Vehicle Control Systems business of American Standard
Companies (NYSE: ASD). On February 1, 2007, American Standard announced plans
to spin off the business, and completed the separation yesterday, exactly six
months later. WABCO was originally part of the Westinghouse Air Brake Company
founded in 1869 and was acquired by American Standard in 1968.
"WABCO's progress has been fueled by consistent strategies, innovative
products and a relentless focus on customers," said Jacques Esculier, former
president of the Vehicle Control Systems business and now CEO of WABCO
Holdings Inc. "I am proud that our evolution to date has positioned us for
this new status as a public company. We are well-equipped to continue to
strengthen our business by further improving the way we serve our clients, and
focusing on expanding opportunities in the global commercial vehicle
Fred Poses, chairman and CEO of American Standard Companies, said, "WABCO
now has the size, global reach and organizational talent to succeed on its own
and is well-positioned to build on its industry leadership."
Since its invention of anti-lock braking systems (ABS) for commercial
vehicles in cooperation with DaimlerChrysler in 1981, WABCO has successfully
grown its revenues with advanced technologies focused on improving the
performance, safety and efficiency of commercial vehicles. These include the
first electronically controlled air suspension (ECAS) system, first commercial
vehicle automated manual transmission controls system, first electronic
stability control (ESC) system and the first integrated vehicle tire pressure
monitoring (IVTM) system developed in partnership with Michelin.
In addition to focusing on continued growth in Western Europe and North
America, the company is pursuing growth strategies in emerging markets such as
China, India and Eastern Europe, as well as expanding its commercial vehicle
aftermarket participation. These growth drivers have helped WABCO generate a
compound annual growth rate (CAGR) in revenue of 8 percent over the last five
years (excluding foreign exchange impact).
With 12 manufacturing facilities in nine countries, WABCO is continually
improving its operations environment through its WABCO Operating System (WOS).
This includes implementing the "Lean" philosophy across the supply chain,
adherence to Design for Six Sigma (DFSS) tools in product development,
customer partnership initiatives and advanced management systems to ensure
accountability across the organization.
"We are continually improving our performance and aligning our global
operations to best serve our strong balance of customers in different markets
and regions worldwide," said Esculier. "We will continue to deliver the
innovative products and outstanding service that our commercial vehicle
customers expect and look forward to bringing the WABCO brand of advanced
technology and service to new markets."
The company also announced today that its board of directors declared a
quarterly dividend of 7 cents per share of common stock and authorized the
company to undertake a $500 million repurchase program of the company's common
stock through 2009. The dividend is payable on September 20, 2007, to
shareholders of record on September 4, 2007.
The company plans to purchase shares at prevailing market prices either
in the open market or through privately negotiated transactions. Timing will
vary depending on market conditions and other factors.
Lazard served as financial advisor for the WABCO spinoff. Skadden Arps
and Baker & McKenzie served as legal counsel.
WABCO is one of the world's leading providers of electronic braking,
stability, suspension and transmission control systems for heavy duty
commercial vehicles. WABCO products are also increasingly used in luxury cars
and sport utility vehicles (SUVs). Customers include the world's leading
commercial truck, trailer, bus and passenger car manufacturers. Founded in
the U.S. in 1869 as Westinghouse Air Brake Company, WABCO was acquired by
American Standard in 1968 and spun off in 2007. Headquartered in Brussels,
Belgium, with executive offices in Piscataway, N.J., WABCO employs more than
7,000 people in 34 offices and production facilities worldwide. In North
America, WABCO markets ABS and other vehicle control products through its 50-
percent-owned joint venture with Arvin Meritor Automotive Inc. (Meritor
WABCO). Also in North America, WABCO partners with Cummins Inc. in a 70-
percent-owned joint venture (WABCO Compressor Manufacturing Co.) focused on
production of WABCO-designed compressors. In 2006, WABCO's total sales were
$2 billion. WABCO is a publicly traded company and is listed on the New York
Stock Exchange under the stock symbol WBC. Web site:
The information contained in this press release contains forward-looking
statements, which are based on management's good faith expectations and belief
concerning future developments. Forward-looking statements can be identified
by the use of words such as "believe," "expect," "plans," "strategy,"
"prospects," "estimate," "project," "anticipate," "intends" and other words of
similar meaning. These forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. Certain factors
could cause actual results and conditions to differ materially from those
projected in these forward-looking statements, and some of these factors are
enumerated in WABCO's filings with the Securities and Exchange Commission.
Financial data is included in the Form 10 of WABCO Holdings Inc. filed
with the Securities and Exchange Commission (SEC) on July 3, 2007.
For further information:
For further information: Media, Margie Pazikas, +32 (2) 663 9801,
Margie.Pazikas@wabco-auto.com; or Fred Spar, +1-212-521-4813,
email@example.com; or Investors and Financial Analysts, Mike Thompson, +32
(2) 663 9854, Mike.Thompson@wabco-auto.com Web Site: