Wabco raises yearly outlook as car sales rise

Commercial auto parts maker Wabco Holdings Inc. on Friday raised its guidance due to better-than-expected demand worldwide.

The availability of credit has loosened, meaning businesses can buy cars and trucks more easily.

May marked the seventh straight month of year-over-year sales increases for the auto industry and demand for the electronic and mechanical products that Wabco makes is up.

The company now expects earnings in 2010 to be $1.75 to $2.05 per share, from earlier guidance of $1.40 to $1.80 per share. That excludes a fine levied on Wabco by the European Commission.

Analysts polled by Thomson Reuters, on average, predict a profit of $1.77 per share. Analyst estimates typically exclude one-time items.

Wabco has its headquarters in Brussels, Belgium. Company shares were unchanged at $33.63 Friday.

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WABCO Supplies MAN Latin America for 4,000 School Buses in Brazil, Improves Vehicle Safety and Comfort; MAN's Largest Delivery Ever

WABCO Holdings Inc. (NYSE: WBC) [www.wabco-auto.com], a global technology leader and tier-one supplier to the commercial vehicle industry, today announced that the company is supplying MAN Latin America in support of their contract with the federal government in Brazil to produce 4,000 school buses featuring improved vehicle safety and passenger comfort.

MAN Latin America, the market leader in Brazil, is part of the MAN Group, one of Europe's leading manufacturers of commercial vehicles and diesel engines.

As part of a national program to modernize the school bus fleet in Brazil, the federal government has ordered 4,000 of MAN Latin America's Volksbus buses, the vehicle maker's largest delivery ever. WABCO is supplying a range of products and innovative solutions that deliver advanced safety and enable cleaner, more efficient operation over the lifetime of the vehicles. Due for delivery by the end of 2011, these buses will further expand Brazil's public transportation system for schoolchildren in cities and rural areas.

""We are proud to contribute to MAN Latin America's increasingly successful Volksbus as this vehicle demonstrates high quality transportation and enhanced safety alike,"" said Nikhil Varty, WABCO Vice President, Compression and Braking. ""On this Volksbus made for transporting schoolchildren in Brazil, WABCO's content helps significantly to improve vehicle safety while increasing passenger comfort.""

About WABCO

WABCO Vehicle Control Systems (NYSE: WBC) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world's leading commercial truck, trailer, and bus manufacturers. With sales of $1.5 billion in 2009, WABCO is headquartered in Brussels, Belgium. For more information, visit www.wabco-auto.com

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Wabco posts 1Q profit of $30M, reversing loss

Wabco Holdings Inc., which supplies components for commercial vehicle manufacturers, posted first-quarter net income Wednesday of $30.7 million, citing higher truck and bus production in emerging markets.

The company also lifted its full-year forecast.

The Brussels-based company said earnings for the three months ended March 31 came to 47 cents per share. That compares with a loss of $36.4 million, or 57 cents per share, in the same period last year.

Excluding items, the company earned 51 cents per share. Results on that basis breezed past Wall Street estimates. According to Thomson Reuters, analysts expected 25 cents per share, on average.

Revenue rose to $491.1 million from $333.9 million. Analysts expected $427.8 million.

"The commercial vehicle industry is recovering," said Wabco Chairman and CEO Jacques Esculier.

The company said Asia and South America showed "significant growth" during the quarter, adding that 75 percent of the world's truck and bus production took place in China, India and Brazil.

Wabco raised its full-year earnings forecast to $1.27 to $1.67 per share, excluding items, citing a recovery in European truck and bus demand. Analysts expect $1.32 per share.

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WABCO Develops and Supplies Innovative Electronics and Air Suspension Technology for Luxury Automaker's Newest Model

WABCO Holdings Inc. (NYSE: WBC) , a global technology leader and tier-one supplier to the commercial vehicle industry, today announced that the company has developed and will supply innovative electronic control technology and a high performance air supply module for original equipment manufacturer Rolls-Royce Motor Cars. WABCO's content will be equipped on the air suspension of the Rolls-Royce Ghost, the newest model in the Rolls-Royce range of luxury sedans.

Enabled by WABCO's and BMW's innovative engineering, the new Rolls-Royce Ghost air suspension is so sensitive that it can detect the movement of a single rear passenger from one side of the seat to the other, and it compensates accordingly. The air suspension system also includes a lift and kneel function, raising or lowering the Rolls-Royce Ghost by 25 millimeters. It assists passengers to enter or exit the vehicle and allows unmatched riding dynamics over uneven road surface.

WABCO's electronic control unit superbly regulates the new Rolls-Royce Ghost's high-tech air suspension, which is pressurized by WABCO's newest generation of high power compressors. The Rolls-Royce Ghost has a state-of-the-art chassis using four-corner air suspension enabled by WABCO's proprietary control algorithms that intelligently distribute air to four air springs. Significantly boosting performance of the new Rolls-Royce Ghost's air suspension, WABCO also enables its virtual silence due to enhanced air management and substantially improved acoustics of WABCO compressors.

"WABCO plays an important role in the success of the new Ghost model," said Mike Thompson, WABCO Vice President, Car Systems. "We are proud of our 23-year track record of innovative electronics and modules for air suspension in passenger cars and light commercial vehicles, and we have a passion for complete, cost-effective modules that satisfy the increasingly strong global demand from car makers and end-users alike for air suspension that significantly enhances ride quality."

In 1986, WABCO introduced its first electronically controlled air suspension (ECAS) system for passenger cars and light commercial vehicles. Today WABCO offers a range of electronic control units and air supply modules for air suspension systems that can be adapted to luxury, midsize and compact passenger cars, sports utility vehicles, and compact vans. Original equipment manufacturers increasingly seek additional functionalities such as speed sensitive adaptation of vehicle body height, which improves vehicle safety while reducing fuel consumption.

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Wabco TVS inks supply pact with Mahindra Navistar

Wabco TVS (India) Limited, part of global technology leader Wabco Holdings Inc of Belgium, a tier-I global supplier for the commercial vehicles industry, has entered into an agreement with Mahindra Navistar Automotives Limited (MNAL), a manufacturer of trucks and part of M&M Group. The pact is for development and long-term supply of air compressor technology products for braking systems and clutch servo technology products.

MNAL, a joint venture between M&M and Navistar, Inc of the US, manufactures a range of trucks and tractor-trailers that set new levels of reliability, efficiency and customer value for the commercial vehicle industry in India.

“Our commitment is to develop and deliver an entire spectrum of commercial vehicles that will benefit our customers in ways that until now are unseen and unheard of in the industry. By partnering with Wabco TVS in India for rigid trucks, we can create and sustain new value in the marketplace through technology innovation that enhances our products for local and export markets,” said Rakesh Kalra, managing director, Mahindra Navistar.

“We are proud to partner with Mahindra Navistar as they move forward to grow their position in high quality commercial vehicles in India and abroad,” said P Kanniappan, managing director, Wabco-TVS (India) Limited. “This significant new business with MNAL further leverages the well-anchored leading position of Wabco TVS in the local market and our ability to maximise value for our customers through improved vehicle safety, increased fuel efficiency and driver effectiveness,” he added. According to Leon Liu, Wabco president (Asia-Pacific), “We are passionate about partnering with MNAL as we continue to contribute to Wabco's pioneering engineering and highly reliable products while further growing our position in emerging markets through deep connectivity with customers.”

This agreement confirms Wabco’s number one position in air compressor technology globally, particularly in India. It also enlarges Wabco's already broad and successful customer base in Asia, he added.

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Moody's Corp. Releases Results for 4th Quarter and Full-Year 2009

Moody's Corp. announced results for the fourth quarter and full-year 2009.

In a release on Feb. 4, Moody's reported revenue of $485.8 million for the three months ended December 31, an increase of 20 percent from $403.7 million for the fourth quarter of 2008. Operating income for the quarter was $178.9 million, a 43 percent increase from $125.4 million for the same period last year. Diluted earnings per share of $0.43 for the fourth quarter of 2009 included a benefit of $0.01 related to previously announced restructuring activities. Excluding restructuring adjustments in both periods, diluted earnings per share of $0.42 for the quarter increased 14 percent from $0.37 in the prior-year period.

Summary of Results for Full-Year 2009

Moody's Corp. said its revenue for the full-year 2009 totaled $1,797.2 million, an increase of 2 percent from $1,755.4 million for 2008. U.S. revenue of $920.8 million increased 1 percent, while non-U.S. revenue of $876.4 million increased 4 percent from the prior year. Operating income of $687.5 million declined 8 percent from $748.2 million for the full-year 2008, and the operating margin was 38.3 percent for the full-year 2009. Excluding the unfavorable impact from foreign currency translation, revenue increased 4 percent from the prior-year period. The impact of foreign currency translation on operating income was negligible. Diluted earnings per share of $1.69 for the full-year 2009 included a net charge of $0.01, reflecting costs related to previously announced restructuring plans partially offset by a benefit from certain legacy tax matters. Excluding these items in both years, diluted earnings per share of $1.70 for the full-year 2009 decreased 7 percent from $1.82 for the full-year 2008.

"Moody's full-year results reflected gradual improvement of credit markets throughout 2009. Strength in corporate debt issuance and growth from Moody's Analytics provided a slight increase in revenue from the prior year, but activity was limited in other areas of the markets," said Raymond McDaniel, Chairman and Chief Executive Officer of Moody's. "We anticipate continuing recovery for 2010, but also expect market conditions to remain challenging until economic improvement across key markets is sustained. With this outlook, we are projecting a stronger revenue increase and a return to earnings growth for 2010, with ongoing expense management to support business initiatives and regulatory and compliance efforts."

Fourth Quarter Revenue

For Moody's Corp. overall, global revenue of $485.8 million increased 20 percent from the fourth quarter of 2008. Excluding the favorable impact of foreign currency translation, revenue increased 17 percent. U.S. revenue of $245.1 million for the fourth quarter of 2009 increased 25 percent from the fourth quarter of 2008, while revenue generated outside the U.S. of $240.7 million increased 16 percent from the prior-year period. Revenue generated outside the U.S. represented 50 percent of Moody's total revenue for the quarter, down from 52 percent in the year-ago period.

Global revenue for Moody's Investors Service ("MIS") for the fourth quarter of 2009 was $331.9 million, an increase of 31 percent from the prior-year period. Excluding the favorable impact of foreign currency translation, revenue grew 26 percent. U.S. revenue of $179.1 million for the fourth quarter of 2009 increased 42 percent from the fourth quarter of 2008. Outside the U.S., revenue of $152.8 million increased 19 percent from the year-ago period, according to Moody's.

Within MIS, global corporate finance revenue of $115.2 million in the fourth quarter of 2009 increased 99 percent from the same quarter of 2008. U.S. corporate finance revenue increased 106 percent from the fourth quarter of 2008, while outside the U.S., revenue increased 90 percent from the prior-year period. Growth was primarily driven by activity in the high-yield bond market.

The company said global structured finance revenue totaled $78.7 million for the fourth quarter of 2009, a decrease of 14 percent from a year earlier. U.S. structured finance revenue increased 5 percent from the year-ago period, reflecting increased issuance activity from asset-backed securities and commercial real-estate finance. Non-U.S. structured finance revenue decreased 25 percent, driven by revenue declines across all asset classes as improved credit market conditions slowed use of securitization for central bank supported programs.

Global financial institutions revenue of $72.0 million in the fourth quarter of 2009 increased 27 percent compared to the same quarter of 2008, due to gains from the banking sector. U.S. financial institutions revenue increased 18 percent, while non-U.S. revenue increased 35 percent.

Global public, project and infrastructure finance revenue was $66.0 million for the fourth quarter of 2009, an increase of 36 percent from the fourth quarter of 2008. U.S. revenue increased 36 percent from the prior-year period, primarily driven by stimulus plan-related public finance issuance. Non-U.S. revenue increased 35 percent with strong issuance in European infrastructure finance.

Global revenue for Moody's Analytics ("MA") for the fourth quarter of 2009 reached $153.9 million, up 3 percent from the same quarter of 2008. Foreign currency translation did not materially impact revenue. Reflecting a realignment of revenue by product grouping in both periods, revenue from subscription-based research, data and analytics of $106.0 million declined by 1 percent from the prior-year period; risk management software revenue of $42.3 million grew 21 percent; and professional services revenue of $5.6 million decreased 26 percent from the prior-year period. A reconciliation table for MA revenue is available at the end of this press release.

In the U.S., MA revenue of $66.0 million for the fourth quarter of 2009 declined 5 percent from the prior-year period, reflecting the effects of customer attrition due to financial market disruption in late 2008 and early 2009. Outside the U.S., revenue increased 10 percent over the prior-year period to $87.9 million, primarily due to growth in the risk management software business.

Fourth Quarter and Full-Year Expenses

According to the company, fourth quarter 2009 expense for Moody's Corp. of $306.9 million was 10 percent higher than in the prior-year period and included higher accruals for performance-based compensation. Moody's reported operating margin for the fourth quarter of 2009 was 36.8 percent. Excluding the restructuring adjustments in the current period, expenses were 11 percent higher than the prior-year period and operating margin was 36.6 percent, compared to 31.1 percent in the prior-year period. Without the unfavorable impact of foreign currency translation, reported expenses increased 8 percent.

Full-year 2009 expenses for Moody's Corp. of $1,109.7 million were 10 percent higher than the prior year. Excluding restructuring adjustments in both periods, Moody's expenses were 8 percent higher in 2009, primarily due to incremental expenses from businesses acquired in the fourth quarter of 2008 and higher incentive compensation.

Moody's said its effective tax rate was 38.3 percent for the fourth quarter of 2009, compared with 28.6 percent for the prior-year period. The increase was primarily due to a favorable true-up of the full-year 2008 tax accrual in the fourth quarter of 2008. In addition, the 2008 effective tax rate included realization of U.S. manufacturing and research credits and deductions. The annual effective tax rate for 2009 was 37.0 percent compared to 36.7 percent for 2008.

Full-Year 2009 Revenue Results

The release said that revenue at Moody's Investors Service totaled $1,217.7 million for the full-year 2009, an increase of 1 percent from the prior-year period. Excluding the unfavorable impact of foreign currency translation, revenue increased 3 percent. U.S. revenue of $663.1 million increased 3 percent, while non-U.S. revenue of $554.6 million decreased 1 percent from the prior year.

Moody's Analytics revenue rose to $579.5 million for the full-year of 2009, up 5 percent from the full-year of 2008. Excluding the unfavorable impact of foreign currency translation, revenue increased by 7 percent. Revenue from research, data and analytics declined by 1 percent to $413.6 million, and professional services revenue was down 10 percent to $20.8 million. For the risk management software business, revenue increased 33 percent to $145.1 million, due to the acquisition of Fermat International in late 2008 and good growth from legacy products and services. U.S. revenue of $257.7 million decreased 3 percent from the full-year 2008 results. Non-U.S. revenue of $321.8 million increased 13 percent from 2008 and represented 56 percent of total revenue, up from 52 percent in 2008.

Capital Allocation and Liquidity

On December 15, Moody's said it increased its quarterly dividend by 5 percent to 10.5 cents per share of Moody's common stock. During the fourth quarter of 2009, Moody's did not repurchase shares and issued 0.4 million shares under employee stock-based compensation plans. Outstanding shares as of December 31, totaled 236.9 million, representing a 1 percent increase from a year earlier. Additionally, as of December 31, Moody's had $1.4 billion of share repurchase authority remaining under its current program. At year-end, Moody's had $1.2 billion of outstanding debt and approximately $550 million of additional debt capacity available under its revolving credit facility. Moody's reduced total outstanding debt by $87 million during the fourth quarter and $274 million for the full-year of 2009. At year-end, total cash and cash equivalents were $473.9 million, an increase of $228 million from a year earlier.

Assumptions and Outlook for Full-Year 2010

Moody's said its outlook for 2010 is based on assumptions about many macroeconomic and capital market factors, including interest rates, corporate profitability and business investment spending, merger and acquisition activity, consumer borrowing and securitization, and the eventual withdrawal of government-sponsored economic stabilization initiatives. There is an important degree of uncertainty surrounding these assumptions and, if actual conditions differ from these assumptions, Moody's results for the year may differ materially from the current outlook.

For Moody's overall, the Company expects full-year 2010 revenue to increase in the high-single-digit percent range. Full-year 2010 expenses are also expected to increase in the high-single-digit percent range. Full-year 2010 operating margin is projected in the high-thirties percent range and the effective tax rate is expected in the range of 37 to 38 percent. Share repurchase is expected to resume at modest levels in 2010 subject to available cash flow and other capital allocation decisions. The Company expects diluted earnings per share for full-year 2010 in the range of $1.75 to $1.85. This outlook assumes foreign currency translation at end-of-year 2009 rates.

For the global MIS business, revenue for the full-year 2010 is expected to increase in the high-single- to low-double-digit percent range. Within the U.S., MIS revenue is expected to increase in the mid-teens percent range, while non-U.S. revenue is expected to increase in the mid-single-digit percent range. Corporate finance revenue is expected to increase in the high-teens percent range with anticipated growth in speculative-grade issuance activity offset by moderation of investment-grade issuance from the high volume of 2009. Structured finance revenue is expected to increase in the mid-single-digit percent range reflecting modest growth in most asset classes. Revenue from financial institution ratings is expected to increase in the low-single-digit percent range, while revenue from public, project and infrastructure finance is expected to increase in the low-double-digit percent range.

For Moody's Analytics, full-year 2010 revenue is expected to increase in the mid-single-digit percent range. Revenue growth is expected in the low-single-digit percent range for research, data and analytics, in the mid-teens percent range for risk management software, and in the high-single- to low-double-digit percent range for professional services. MA revenue is expected to increase in the low-single-digit percent range in the U.S. and in the mid-single-digit percent range outside the U.S.

According to the release, Moody's provides credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody's Corp. is the parent company of Moody's Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which encompasses Moody's non-ratings businesses including risk management software for financial institutions, quantitative credit analysis tools, economic research and data services, data and analytical tools for the structured finance market, and training and other professional services. The Corp., which reported revenue of $1.8 billion in 2009, employs approximately 4,000 people and maintains a presence in 27 countries.

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WABCO Reports Q4, Maintains Profitability Amid Severe Industry Decline; Provides Guidance for 2010

WABCO Holdings Inc. (NYSE: WBC), a global technology leader and tier-one supplier to the commercial vehicle industry, today reported Q4 2009 sales of $460 million, up 1 percent from prior year and down 9 percent in local currencies, bringing full year 2009 sales to $1.49 billion, down 42 percent from prior year and down 39 percent in local currencies, reflecting the unprecedented severe slump in global demand for new commercial vehicles.

"2009 was an unprecedented year for the global commercial vehicle industry, which abruptly and deeply dropped in size while going through a shakeup of market demand among regions of the world and significantly increasing the importance of Asia. Indeed, in the last 12 months, commercial vehicle production decreased by more than 60 percent in Europe and almost 40 percent in North America while production grew by 18 percent in China. In 2009, more than 60 percent of the world's truck and bus production took place in China and India," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "During the past five years, in anticipation of the growing importance of emerging markets, WABCO has been driving major initiatives to globalize the company's culture, capabilities and customer reach. In 2009, the future came faster than we thought but we were well prepared to morph with the market."

"Strongly rooted in China and India, WABCO has achieved a leading position in the marketplace through increasingly close connectivity to customers. We are further strengthened in Asia by an outstanding network of suppliers, manufacturing sites and engineering hubs. We produce some of our most advanced technologies right in Asia to serve local markets," said Esculier. "In Q4 2009, Asia accounted for 22 percent of sales, compared with 10 percent the prior year."

"In 2009, we also benefited from our efforts initiated a few years ago to grow our aftermarket globally. Q4 2009 revenues from aftermarket, in fact, increased by 13 percent year on year," said Esculier. "For full year 2009, we limited our decline in aftermarket sales to 6 percent."

WABCO reported Q4 2009 EBIT of $24.6 million, up from $15.2 million a year ago while performance EBIT was $26.5 million versus $43.3 million a year ago.

WABCO reported full year 2009 EBIT of $7.6 million, compared with EBIT of $247.8 million a year ago while performance EBIT was $38.9 million versus $301.1 million a year ago.

WABCO reported Q4 2009 net income of $38.7 million or $0.59 per diluted share versus net income of $21.2 million or $0.33 per diluted share a year ago. Performance net income for Q4 2009 was $23.2 million or $0.36 per diluted share versus performance net income of $39.5 million or $0.62 per diluted share a year ago. Performance net income excludes $13.9 million of benefits from certain one-time tax items in Q4 2009, in addition to other smaller items relating to streamlining and separation.

WABCO reported full year 2009 net income of $18.8 million or $0.29 per diluted share versus net income of $213.3 million or $3.24 per diluted share in 2008. Performance net income for full year 2009 was $25.7 million or $0.40 per diluted share versus performance net income of $246.8 million or $3.75 per diluted share a year ago.

Full year performance net income excludes certain non-performance items including streamlining expenses of $46.4 million (net of tax), favorable settlements resulting in the release of certain separation related indemnification obligations of $37.8 million, the previously disclosed charge from the Indian joint venture transactions of $9.8 million, and other tax related benefits of $11.5 million. In total, these non-performance items negatively impacted reported net income by $6.9 million for full year 2009.

WABCO generated $18.9 million in net cash from operating activities in Q4 2009 and used $7.6 million of free cash flow. Excluding payments of $10.2 million associated with streamlining, free cash flow in Q4 2009 totaled $2.6 million, reflecting the company's funding of increased business activities in Q4 2009.

WABCO generated free cash flow of $78.8 million for full year 2009. Excluding payments of $40.0 million associated with streamlining, free cash flow for full year 2009 totaled $118.8 million.

"Rising to the market challenges in 2009, we demonstrated, once again, our powerful ability to adapt to fast changing conditions and outperform industry dynamics. As early as mid 2008, we had already anticipated adverse global market conditions, and we swiftly launched decisive actions to align our capacity and cost structure for a significantly reduced level of market demand," said Esculier. "In the meantime, we continued to make progress on our three-pillar strategy of technology leadership, global expansion and excellence in execution."

"In 2009, we announced two breakthrough technologies: new clutch compressors and ESCsmart™ simulation system while our OptiDrive™ transmission automation system was named a finalist for the Automotive News PACE™ Award, the industry's benchmark for innovation. We entered into a long term supply agreement with CNHTC, China's largest producer of heavy duty trucks, to deliver our broad range of products from traditional valves all the way to our most sophisticated transmission automation systems," said Esculier. "In India, after acquiring majority control of our award-winning joint venture WABCO-TVS, we successfully integrated this world class subsidiary into our global organization. We further expanded our global customer base for OptiDrive systems through our long term agreement with Ashok Leyland, one of India's largest manufacturers of commercial vehicles."

"Amid WABCO's many accomplishments in 2009, our organization performed superbly, with high efficiency, maximum flexibility and fully under control. Across our worldwide manufacturing network, we further improved the overall quality of our products by 60 percent, reaching another exceptional level," said Esculier. "Demonstrating our commitment to safety in the workplace, we also improved the company's rate of occupational injury or illness in our factories by 20 percent, exceeding our superlative result from the previous years and continuing WABCO's industry-leading safety performance at yet another world class level."

"During 2009, we drove continuous improvements through our WABCO Operating System, one of our industry's most advanced management environments. Despite market turmoil that continued to strongly impact our suppliers and significant restructuring activities internally, our WABCO Operating System delivered $56.6 million of materials and conversion productivity, with materials productivity representing a record 6.1 percent of total materials cost. Among other strong positive results, we also achieved cost savings of $75 million in operating expenses, resulting in a reduction of approximately 19 percent year on year," said Esculier. "This major success helped maintain WABCO's full year 2009 profitability and generate free cash flow that well achieved the expectations in the company's previously disclosed 2009 operating framework."

Recent Highlights

In January 2010, WABCO announced that WABCO-TVS, the company's Indian subsidiary, won the India Manufacturing Excellence Award (IMEA) with "Super Platinum" distinction. Presented by The Economic Times in partnership with Frost & Sullivan, it is India's largest on-site audit of manufacturing practices benchmarked against global standards. The jury honored the WABCO-TVS manufacturing facility located in Chennai, India, as "Super Platinum" in recognition of the site's highest score among all other winners in 2009.

WABCO reported in January 2010 that it again supplied its most advanced, high performance braking technology to KAMAZ-Master, the Russian national off-road truck rally team and winner of Dakar 2010, the world's most challenging endurance rally. KAMAZ-Master trucks finished in first, second and fifth place at Dakar 2010, marking an unprecedented ninth time that KAMAZ-Master is the winner of the Dakar competition. WABCO has been supplying KAMAZ-Master heavy duty trucks for more than 10 years.

WABCO announced in January 2010 that its roll stability support (RSS) for trailers is the industry's first trailer roll-over control approved for use in all 27 countries of the European Union and in 20 other countries worldwide in accordance with the United Nations Economic Commission for Europe's Regulation 13 for braking. A new EU regulation requires vehicle stability with roll-over control for semi-trailers and heavy trailers, both with air suspension and up to three axles. It is compulsory for new type approvals from July 2010 and for new registrations from July 2011.

In January 2010, WABCO disclosed that it has developed and will supply breakthrough electronic control technology and an innovative high performance air supply system for original equipment manufacturer AUDI AG. WABCO's content will be equipped on the air suspension of the Audi A8 2010 model, Audi's new flagship luxury sedan. WABCO's electronic control unit is the passenger car industry's first application of air suspension using FlexRay™ technology for in-car data networking, resulting in faster and more highly reliable integration with the vehicle's other sensors and control systems.

Also in January 2010, WABCO introduced Trailer Immobilizer, a security innovation that significantly increases protection against trailer theft, as an additional function in the company's trailer electronic braking system (EBS). It blocks the wheels of a parked trailer to help prevent theft or unauthorized use. It is also the commercial vehicle industry's first trailer immobilizer system integrated with the vehicle's electronic braking system. It continues WABCO's 11-year track record of technology leadership in EBS for trailers.

In Q4 2009, WABCO announced that a global original equipment manufacturer headquartered in Europe has awarded WABCO a multi-year contract to supply an integrated pedal module to equip heavy and medium duty trucks for series production starting in 2013. Available for both automated and manual gearboxes, WABCO's integrated pedal module provides a standard interface in the vehicle's cab environment, resulting in lower installation costs and optimized logistics in original equipment manufacturing processes.

WABCO recently announced that its OptiDrive system, a breakthrough in transmission automation technology, has been named a finalist for the 2010 Automotive News PACE™ Awards, the automotive industry's benchmark for innovation. OptiDrive is a modular automated manual transmission system for medium and heavy duty commercial vehicles. It continues the company's 20-year track record of technology leadership in transmission automation.

WABCO was honored in Q4 2009 with two Technology Innovation Awards from one of China's largest manufacturers of commercial vehicles. Foton Group recognized WABCO's outstanding technological contribution to their trucks and Foton Bus Company praised WABCO's top innovation for their buses. Foton is ranked among China's 50 most valuable brands.

WABCO disclosed in Q4 2009 that the company and Yuchai Machinery Company have completed an agreement for product development and the long-term supply of twin-cylinder compressors for diesel engines to be mounted on heavy duty trucks. Yuchai is China's largest manufacturer of diesel engines for commercial vehicles for the past eight consecutive years and one of China's leading exporters serving more than 50 countries.

The company reported in Q4 2009 that WABCO and Chery Automobile Company have completed an agreement for product development and the long-term supply of vacuum pumps for automotive braking applications for diesel and gasoline direct injection engines. Chery is one of China's leading manufacturers of passenger cars and China's top ranked exporter of cars serving more than 70 countries. WABCO vacuum pumps for automotive braking systems utilize an ultra-low power consumption design that helps improve engine efficiency.

WABCO recently achieved a business breakthrough at one of its customers, Anhui Hualing Automobile Company (CAMC), one of China's major manufacturers of heavy duty trucks. Supplying the customer's trucks for both domestic and international markets, WABCO is providing anti-lock braking systems (ABS) and components for cabin air suspension systems on a sole supplier basis while also significantly furnishing other braking systems.

In Q4 2009, Meritor WABCO, the company's joint venture in North America, announced that System Saver 1200 Plus air dryers will be standard on all truck models of Daimler Trucks North America, as of January 2010. Developed specifically for North American air braking systems, the Meritor WABCO System Saver 1200 Plus is a high capacity air dryer that can be used in a wide range of vocational environments.

In Q4 2009, Meritor WABCO was awarded a significant contract by a major original equipment manufacturer of commercial vehicles to supply emission control valves, starting in January 2010, to help meet new engine requirements that came into effect in 2010 in the United States.

Also in Q4 2009, Meritor WABCO and a leading truck producer made an agreement for the supply of hydraulic clutch control systems, which include a master cylinder, slave cylinders and connecting technology for optional servo cylinders. The customer's volume production is scheduled to begin in April 2010.

As of 2009, Meritor WABCO marked another achievement in the company's technology leadership for commercial vehicle clutch technology. It now supplies clutch controls to three of the largest manufacturers of Class 8 trucks in North America. Class 8 trucks are the North American industry's heaviest duty with a gross vehicle weight rating above 33,000 pounds (14,969 kilos).

Full Year 2010 Guidance

Based on a set of market assumptions, the company's guidance for 2010 includes an estimated increase in 2010 sales of 15 to 20 percent in local currencies, full year reported operating margin from 4.5 to 6.5 percent, and performance operating margin from 5 to 7 percent, resulting in diluted earnings per share between $0.87 and $1.27 on a U.S. GAAP basis and between $1.00 and $1.40 on a performance basis. WABCO expects to convert between 80 and 90 percent of its net income into free cash flow, excluding streamlining and separation related payments.

"With our organization realignment and track record of excellent adaptability, we have enabled sufficient flexibility to take advantage of anticipated market opportunities. We will continue to connect more closely with customers and morph with the markets, especially in Asian and emerging countries," said Esculier. "We will fully capitalize on the exceptional efforts we made in 2009, resulting in our successful streamlining, major productivity gains, significantly reduced cost structure and an even more highly cost-effective WABCO Operating System. WABCO is well poised to generate superb incremental margins on future growth in the coming years."

About WABCO

WABCO Vehicle Control Systems (NYSE: WBC) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world's leading commercial truck, trailer, and bus manufacturers. With sales of $1.5 billion in 2009, WABCO is headquartered in Brussels, Belgium. For more information, visit www.wabco-auto.com

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Meritor Wabco Celebrates 20 Years of Offering Parts

Meritor Wabco Vehicle Control Systems has reached the 20-year mark of providing commercial vehicle braking and active safety systems.

As part of the company's anniversary, it celebrated its aftermarket business, which has grown 5 percent each year since 1990 and has shipped over 8.1 million units to date.

"Our complete customer support team in Hebron, Ky., in Florence, Ky., and in district managers across the country makes the world's most advanced vehicle control systems easier to understand, use, and service," said Jon Morrison, president of Meritor Wabco Vehicle Control Systems.

While the company's antilock brake parts accounted for all of its aftermarket sales 20 years ago, these products now account for about 50 percent of its sales, as the company has expanded its product offerings to include a range of air dryers, compressors, valves, and other parts.

Over the years, the company has also added and improved other services, including its one-year warranty on replacement parts, diagnostic support, its suite of electronic ordering and fulfillment services, training, and field support.

Meritor Wabco is a joint venture of ArvinMeritor and the Wabco Automotive Control Systems, a wholly-owned subsidiary of Wabco Holdings, Inc.

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WABCO develops breakthrough electronics

WABCO Holdings Inc. today announced that the company has developed and will supply breakthrough electronic control technology and an innovative high performance air supply system for original equipment manufacturer AUDI AG. WABCO’s content will be equipped on the air suspension of the Audi A8 2010 model, Audi’s new flagship luxury sedan.

Enabled by WABCO’s pioneering engineering, the new Audi A8’s adaptive air suspension with controlled damping responds softly and silently to even slight unevenness in the road surface. Integrating Audi’s unique damping algorithms, it determines the most effective damping level based on road surface, load, speed, and vehicle body movement. It increases passenger comfort through constantly adapted vehicle ride height. Speed sensitive lowering of the vehicle body also improves vehicle safety while reducing fuel consumption.

WABCO’s electronic control unit for the new Audi A8’s state-of-the-art air suspension features FlexRay™ technology, marking a breakthrough in data networking for in-car control systems. It is the passenger car industry’s first application of air suspension using FlexRay, a new standard for in-car communications, resulting in faster and more highly reliable integration with the vehicle’s other controls and sensors. It further improves performance of the new Audi A8’s air suspension through optimal sensitivity and continually adaptive damping that reduces vehicle vibration and prevents it from increasing.

Continuing WABCO’s 23-year track record of innovative air suspension systems for passenger cars and light commercial vehicles, the company’s newest generation of high power compressors enables WABCO’s air supply system to increase air pressure capacity by 40 percent. It significantly boosts performance for the new Audi A8’s front and rear axle air suspension by more quickly lowering and raising the body, reducing drag and stabilizing the vehicle. WABCO’s air supply system enables virtual silence during air suspension performance due to its enhanced air management and substantially improved acoustics of WABCO compressors.

“WABCO’s breakthrough electronics and innovative air supply modules provide an outstanding opportunity for car makers to boost air suspension performance, enable smoother running, increase vehicle safety and enhance passenger comfort while improving fuel efficiency,” said Mike Thompson, WABCO Vice President, Car Systems. “We are passionate about continuing to deliver innovative, cost-effective and easy-to-install solutions to meet the strongly growing global demand from car makers and end-users alike for air suspension systems in passenger cars.”

In 1986, WABCO introduced its first electronically controlled air suspension (ECAS) system for passenger cars and light commercial vehicles. Today WABCO offers a range of electronic control units and air supply modules for air suspension systems that can be adapted to luxury, midsize and compact passenger cars, sports utility vehicles, and compact vans. Original equipment manufacturers increasingly seek additional functionalities such as speed sensitive adaptation of vehicle body height, which improves vehicle safety while reducing fuel consumption.

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WABCO Holdings said that it has developed and will supply new electronic control technology and high performance air supply system for original equipm

WABCO Holdings said that it has developed and will supply new electronic control technology and high performance air supply system for original equipment manufacturer, Audi AG. WABCO's content will be equipped on air suspension of the company's new flagship luxury sedan, A8 2010 model.

The new Audi A8's adaptive air suspension with controlled damping responds to slight unevenness in road surface. Integrating Audi's damping algorithms, it determines effective damping level based on road surface, load, speed, and vehicle body movement. It increases passenger comfort through adapted vehicle ride height, and speed sensitive lowering of vehicle body also improves vehicle safety while reducing fuel consumption.

WABCO's electronic control unit for new Audi A8's air suspension features FlexRay technology, which results in reliable integration with vehicle's other controls and sensors. It also improves performance of the suspension through optimal sensitivity and continually adaptive damping reducing vehicle vibration and prevents it from increasing.

WABCO's high power compressors enables it's air supply system to increase air pressure capacity by 40%. It improves performance for the new Audi A8's front and rear axle air suspension by lowering and raising the body, reducing drag and stabilizing vehicle. It's air supply system enables virtual silence during air suspension performance due to its enhanced air management and acoustics of WABCO compressors.

Mike Thompson, vice president of car systems at WABCO, said: “WABCO's breakthrough electronics and innovative air supply modules provide an outstanding opportunity for car makers to boost air suspension performance, enable smoother running, increase vehicle safety and enhance passenger comfort while improving fuel efficiency. We are passionate about continuing to deliver innovative, cost-effective and easy-to-install solutions to meet the strongly growing global demand from car makers and end-users alike for air suspension systems in passenger cars.”

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WABCO Introduces Security Innovation in Trailer Electronic Braking System; New Immobilizer Technology Increases Protection against Trailer Theft

WABCO Holdings Inc. (NYSE: WBC), a global technology leader and tier-one supplier to the commercial vehicle industry, today introduced Trailer Immobilizer, a security innovation that significantly increases protection against trailer theft, as an additional function in the company’s trailer electronic braking system (EBS). The introduction of Trailer Immobilzer continues WABCO’s 11-year track record of technology leadership in EBS for trailers.

WABCO Trailer Immobilizer is an electronic system with high security that blocks the wheels of a parked trailer to help prevent theft or unauthorized use. It safeguards against manipulation and also increases security and safety when the trailer is parked on a slope. The truck driver activates Trailer Immobilizer by entering a PIN code via SmartBoard, an easy-to-use control box that graphically displays the trailer’s critical real-time operating information in a choice of 15 different languages.

WABCO Trailer Immobilizer is the commercial vehicle industry’s first trailer immobilizer system integrated with the vehicle’s electronic braking system. It is featured on the E1.5 version of the company’s Trailer EBS E generation, marking the latest innovation in WABCO’s industry-leading Trailer EBS series that was launched in 1998. As of 2009, WABCO has sold more than 900,000 trailer electronic braking systems worldwide.

“As the number of trailer thefts nearly doubles year on year, fleet owners and operators face sharply rising costs and major business disruption due to stolen vehicles, theft of valuable cargo, and damage and accidents due to manipulation by unauthorized persons,” said Nick Rens, WABCO Vice President, Aftermarket and Trailer Systems. “WABCO Trailer Immobilizer technology demonstrates our passion to help transport professionals continuously improve their vehicles’ security and safety while further protecting their profitability.”

Trailer EBS Version E1.5 continues to feature previously released roll stability support (RSS) and an operating data recorder that registers the trailer’s technical data much like an airplane’s black box, as well as optional functions such as OptiLoad™, OptiTurn™, Tilt Alert™ and Bounce Control™.

About WABCO

WABCO Vehicle Control Systems (NYSE: WBC) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world’s leading commercial truck, trailer, and bus manufacturers. With sales of $2.6 billion in 2008, WABCO is headquartered in Brussels, Belgium. For more information, visit www.wabco-auto.com

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WABCO Introduces Security Innovation in Trailer Electronic Braking System

WABCO Holdings Inc., a global technology leader and tier-one supplier to the commercial vehicle industry, today introduced Trailer Immobilizer, a security innovation that significantly increases protection against trailer theft, as an additional function in the company's trailer electronic braking system (EBS). The introduction of Trailer Immobilizer continues WABCO's 11-year track record of technology leadership in EBS for trailers.

WABCO Trailer Immobilizer is an electronic system with high security that blocks the wheels of a parked trailer to help prevent theft or unauthorized use. It safeguards against manipulation and also increases security and safety when the trailer is parked on a slope. The truck driver activates Trailer Immobilizer by entering a PIN code via SmartBoard, an easy-to-use control box that graphically displays the trailer's critical real-time operating information in a choice of 15 different languages.

WABCO Trailer Immobilizer is the commercial vehicle industry's first trailer immobilizer system integrated with the vehicle's electronic braking system. It is featured on the E1.5 version of the company's Trailer EBS E generation, marking the latest innovation in WABCO's industry-leading Trailer EBS series that was launched in 1998. As of 2009, WABCO has sold more than 900,000 trailer electronic braking systems worldwide.

"As the number of trailer thefts nearly doubles year on year, fleet owners and operators face sharply rising costs and major business disruption due to stolen vehicles, theft of valuable cargo, and damage and accidents due to manipulation by unauthorized persons," said Nick Rens, WABCO Vice President, Aftermarket and Trailer Systems. "WABCO Trailer Immobilizer technology demonstrates our passion to help transport professionals continuously improve their vehicles' security and safety while further protecting their profitability."

Trailer EBS Version E1.5 continues to feature previously released roll stability support (RSS) and an operating data recorder that registers the trailer's technical data much like an airplane's black box, as well as optional functions such as OptiLoad(TM), OptiTurn(TM), Tilt Alert(TM) and Bounce Control(TM).

About WABCO

WABCO Vehicle Control Systems (NYSE: WBC) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world's leading commercial truck, trailer, and bus manufacturers. With sales of $2.6 billion in 2008, WABCO is headquartered in Brussels, Belgium. For more information, visit www.wabco-auto.com.

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