Wabtec Q1 2009 Earnings Call Transcript

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2009-04-22 13:06:12.0

Tags: Call Transcript, Earnings, Question, Government, Sales Strategy, Sales, Seeking Alpha, Wabtec Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Our first question will come from Ryan MacLean from Janney Montgomery Scott. Please go ahead.

Ryan MacLean - Janney Montgomery Scott

Good morning. First question, I just want to know what the FX contribution you disclosed for the top line for a second (ph).

Albert Neupaver

The question is what impact did FX have on the top line from a year ago quarter? It was $22 million negative.

Ryan MacLean - Janney Montgomery Scott

And just wanted to talk a little bit about within Transit funding. Obviously, federal stimulus dollars are going to be... start flowing more so than we have seen already. And I am just wondering if, in the first quarter, have we seen any of the Transit customers maybe defer some of their spending while they are waiting for the money to start flowing their way, or was it... normally, did sales occur as they normally would?

Albert Neupaver

We saw no deferment of any spending during the first quarter and we actually have never... not seen any of that even last year, Ryan. What you will find is the ongoing approved programs are moving ahead at a pretty good pace and there is a tremendous amount of activity by most of our customers, transit authorities, governments to get in projects that would allow them to be successful in getting some of the stimulus funding.

Ryan MacLean - Janney Montgomery Scott

Okay. Shifting over to... on the freight side of the business, you mentioned that you expect the locomotive builds to be down about 25% this year. And I was wondering if you can kind of go into it a little more detail as to how that relates, U.S. versus international, we hear of the --

Albert Neupaver

We expect, Ryan, on the locomotive, we think that the domestic purchase could be down greater than 40%, 50% for the year. But there is still a lot of backlog related to some international purchases. In those cases, it may not be a full locomotive that is shipped and statistics may be a bit confusing. But in our case, we would be setting up a subtype of... a kidding (ph) of the products that we would supply to these various projects. So it still becomes a locomotive build. And that's built into that... when we talk about the 25% decline as we view it. So that may not be consistent with what you would hear about North American locomotive builds.

 

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