Wabtec Inks $65 Million of Contracts with the PATH

By Ki Kim - 1/4/2006

Wabtec (NYSE: WAB) today announced that it has signed some $65 million of contracts to supply components for the Port Authority Trans-Hudson (PATH)’s new subway cars. The PATH rapid-transit system serves New York City and northern New Jersey.

The contracts inked with the PATH are related to the transport authority’s base order of 340 new subway cars, which are to be built by Kawasaki Rail Car. If the PATH exercises its option of ordering up to 125 more cars, the value of the contracts would increase to about $80 million.

Wabtec's WABCO Transit and Vapor Rail units will supply brakes, couplers, door operators, and controls for the cars. Wabtec expects to deliver its components later this year. "We're pleased to play an important role in the revitalization of the PATH fleet," said William E. Kassling, Wabtec's chairman, president and CEO.

The rail-car brake maker also has orders to supply parts for subway cars in New York City, and to build locomotives for the Toronto and New York transit authorities. Wabtec shares climbed $0.54 to $47.60 in early afternoon trading.

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