Westinghouse Air Brake Technologies Corporation (WAB) has reported 62.85 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $37.81 million, or $0.42 a share in the quarter, compared with $101.78 million, or $1.05 a share for the same period last year.     

Revenue during the quarter dropped 8.75 percent to $759.98 million from $832.85 million in the previous year period. Gross margin for the quarter contracted 329 basis points over the previous year period to 28.84 percent. Total expenses were 91.74 percent of quarterly revenues, up from 81.84 percent for the same period last year. That has resulted in a contraction of 989 basis points in operating margin to 8.26 percent.

Operating income for the quarter was $62.80 million, compared with $151.21 million in the previous year period.

Raymond T. Betler, Wabtec’s president and chief executive officer, said: "During 2016 we faced many challenges, including significant headwinds in our freight and industrial markets. Yet, our financial results were among the best in our history, we generated more cash from operations than net income, and we completed the most important strategic acquisition we’ve made to date. I’m pleased with how our team responded to difficult market conditions, some of which will persist in 2017. We will continue to control what we can by managing our costs aggressively, while working diligently on the integration of Faiveley. We will also continue to invest in our balanced growth strategies and expect to benefit from our diversified business model and rigorous application of the Wabtec Excellence Program."

Westinghouse Air Brake Technologies Corporation projects revenue to be $4,100 million for financial year 2017, the company expects diluted earnings per share to be in the range of $3.95 to $4.15 on adjusted basis.