Earnings Are Mixed For Brake Suppliers

DETROIT, MICH.–Earnings were mixed for brake suppliers largely do to a slow down in auto sales and increased spending in r&d for technologies not yet sold through to the market.

WABCO Holdings Inc.

WBC canceled the first-quarter 2019 earnings call scheduled for Apr 26, 2019, due to the agreement and plan of merger with ZF Friedrichshafen AG. However, the company issued the earnings report in Form 10-Q quarterly. Its earnings were $1.64 per share in the reported quarter, marking a decline from $1.87 recorded in the prior-year quarter. The Zacks Consensus Estimate for earnings was pegged at $1.85.

Reportedly, quarterly sales of WABCO declined 7% to $933 million. This decline was due to a challenging environment that led to a slump in the global production of new trucks, buses and trailers as well as passenger cars. The Zacks Consensus Estimate for sales was pegged at $972.3 million.

During the reported quarter, gross profit decreased 11.7% year over year to $273 million. Operating expenses rose 3.5% year over year to $167.7 million.

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Veoneer, a maker of radar, vision systems, brake products and software for autonomous driving, lost $1.57 per share in the first quarter on revenue of $494 million, falling short of analyst expectations for a $1.19 per share loss on sales of $525 million. The Swedish auto technology firm reported first-quarter earnings well below expectations and said it would seek to raise up to $500 million in new capital.

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Meritor, Inc. MTOR recorded adjusted earnings of $1.03 per share in the second-quarter fiscal 2019 (ended Mar 31, 2019), which surpassed the Zacks Consensus Estimate of 87 cents. In the year-ago period, the figure was 75 cents per share.

Adjusted income from continuing operations was $88 million compared with $65 million in second-quarter fiscal 2018.

Sales increased approximately 8% year over year to $1.56 billion. The top line surpassed the Zacks Consensus Estimate of $1.1 billion. This year-over-year rise was due to higher truck production, majorly in North America.

Meritor’s adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased to $139 million from $122 million a year ago. Adjusted EBITDA margin was 12% compared with 11.4% a year ago. Gain in adjusted EBITDA was due to higher revenues, partly offset by foreign currency fluctuation.

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Delphi Technologies

Delphi Technologies PLC (DLPH) (“Delphi Technologies” or the “Company”), a global leader in vehicle propulsion, today reported first quarter 2019 U.S. GAAP earnings of $0.18 per diluted share. Excluding special items, first quarter earnings totaled $0.67 per diluted share. The Company also reported revenue of $1.2 billion for the quarter, a decrease of 6% compared to the respective equivalent prior period, on an adjusted basis.

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David Kiley
David Kiley

David Kiley is Chief of Content for The BRAKE Report. Kiley is an award-winning business journalist and author, having covered the auto industry for USA Today, Businessweek, AOL/Huffington Post, as well as written articles for Automobile and Popular Mechanics.