Commercial vehicle safety and control system supplier Wabco Holdings has raised its full year 2010 guidance citing stronger than expected aftermarket sales growth, further increased demand from original equipment manufacturers in Europe and stronger than anticipated demand from customers in China during the fourth quarter.
This was reportedly the fifth consecutive time the company forecast a better full year performance.
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Wabco now expects an estimated increase in Q4 2010 sales of 41.5 to 43.5% or US$623 to $633m, up from $595 to $615m previously.
Operating margin is now seen at 11.2 to 11.7%, up from 8.9 to 9.9%.
Earnings per share is forecast to range from $0.89 to $0.94 from $0.64 to $0.74.
Full year 2010 sales are pegged at $2,172 to $2,182m, up from $2,144 to $2,164m.
Operating margin is expected to range from 9.8 to 10.0%, up from 9.4 to 9.7%.
Full year diluted loss per share is now seen ranging from $3.59 to $3.54 instead of $3.85 to $3.75.
“Our business is developing even more favourably than we expected two months ago as severe winter conditions in Europe boost aftermarket sales and additional customer demand in Europe and China further grows our fourth quarter revenues,” said chairman and CEO Jacques Esculier. “As we prepare to enter 2011, our expanding backlog means keeping factories running during year-end holidays, which in turn will further increase volume productivity. We also see more favorable impacts from year-end activities in Q4 2010 than previously expected.”
