Westinghouse Air Brake Technologies Corp.

Wabtec's transit business tends to show greater stability than its freight business. At the onset of the pandemic, we believed that the related headwinds, specifically a prolonged decrease in ridership, posed a threat to the steadiness of this business. Wabtec, however, continues to win business in the segment. In the first quarter, the company signed contracts to install brakes, doors, and HVAC products in India, Taiwan, and France. Importantly, the company has not seen cancellations in the segment. While the pandemic's long-term effect on transit remains to be seen, we believe there are early signs that municipalities and governments will continue to invest significantly in this form of transportation. The recovery in North American freight, meanwhile, remains slow. Locomotive parking

...Stronger performance in its transit and international freight business should help offset a sluggish recovery in North American freight. While North American freight volumes and equipment utilization sequentially improved in the first quarter of 2021, they remain at low levels. Westinghouse Air Brake Technologies Corp.'s (Wabtec's) first-quarter sales were predominantly driven by international freight, its services business, and a recovery in transit. Wabtec's transit business tends to show greater stability than its freight business. At the onset of the pandemic, we believed that the related headwinds, specifically a prolonged decrease in ridership, posed a threat to the steadiness of this business. Wabtec, however, continues to win business in the segment. In the first quarter, the company signed contracts to install brakes, doors, and HVAC products in India, Taiwan, and France. Importantly, the company has not seen cancellations in the segment. While the pandemic's long-term effect on...

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