Names change at Wabtec
FOLLOWING last year's merger of Westinghouse Air Brake Co and MotivePower Industries (RG 1.00 p55), Wabtec Corp has changed the name of several business units, 'to convey their product lines or association with the corporation more clearly', according to President & Chief Operating Officer Greg Davies. Boise Locomotive has been renamed MotivePower, and component supplier Power Parts is Wabtec Distribution. Wabco subsidiary RFS (E) of Great Britain becomes Wabtec Rail Ltd to 'generate recognition' in European markets. Young Radiator and Touchstone are consolidated as Young Touchstone, and Wabco's Casting Division becomes Wabtec Foundry. Wabco's Railway Electronics, Rubber Products and Service Centers businesses now carry the Wabtec name. However, Wabco Passenger Transit becomes Wabco Transit Division and Westinghouse Railway (Canada) becomes Wabco Freight Car Products 'to better describe this business' and retain the Wabco brand.
After merger and restructuring costs of US$43·6m, Wabtec reported income before tax of US$120·3m in 1999, and expects the second half of 2000 to be stronger than the first as 'cost-cutting actions, merger synergies and a firm backlog of new contracts begin to have a favourable impact'. Staffing has been reduced by 8% since mid-1999, and Wabtec says it is on target to generate 'at least US$15m of pre-tax synergies' this year.
Wabtec forecasts that the US supply industry will deliver around 50000 wagons and 1100 locos this year, down from 74000 and 1500 respectively in 1999. As a result, Wabtec Chairman & Chief Executive Officer William Kassling does not expect to see sales growth in the first half of 2000.
- Young Touchstone has signed an extension to its exclusive contract with General Motors EMD to supply radiators, oil coolers, charge air coolers and fuel preheaters. This is expected to be worth US$60m over four years.