Westinghouse Air Brake Technologies Corporation

Good morning. Welcome to the Web Tech Corp third quarter 2019 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Christine Kubacki, the VP of Investor Relations. Please go ahead.

Thank you, Debbie. Good morning, everyone, and welcome to WAB Tech's third quarter earnings call. With us today are President and CEO Rafael Santana, CFO Pat Dugan, and Corporate Controller John Mastelers. Before we start, I would like to point out a change to today's call. Based on feedback we received from you and our desire to drive continuous improvement, we will be sharing a slide presentation to support our discussion today during today's call. This presentation, along with our earnings release and financial disclosures, were posted on our website earlier today and can be accessed on our Investor Relations tab on wabtechcorp.com. As such, some statements we're making today are forward-looking and based on our best view of the world and our business today. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see disclosures in our earnings release and presentations. We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics. And now, I will turn over the call to Rafael.

Thanks, Christine, and good morning, everyone. Thanks for joining us. Today I'll share some thoughts on our third quarter performance and strategic priorities for the remainder of the year. Then Pat will cover the quarter in greater detail, as well as an overview of both our freight and transit segments and overall market dynamics. As you can see on slide three of the presentation, our third quarter results were on track and were well positioned to deliver the continuous strong performance with sales of over $2 billion due to strength in our service businesses, continued growth in our international markets, as well as the transit segments. Our aftermarket offerings continue to be a stable and profitable part of our portfolio as well as a key differentiator as we partner with customers over the life cycle of their equipment. This includes our successful modernization program, which closed a significant milestone, which was a first-of-a-kind international mods order in the third quarter. We have also seen growth in transits after market sales, which contributed to the overall transit sales growth year over year. In line with our goal to drive continued margin expansions, we saw improvement in our adjusted consolidated margin as a result of higher freight mix in aftermarket, along with early traction on our synergy and cost actions. We will continue to take action on improved project execution, and we remain laser focused on the prioritization of resources and prudent capital allocation. Cost reductions and synergy actions stemming from the WOTAC and GE transportation merger are also ahead of plan. This is the result of several actions, including a reduction of direct and indirect spend, efforts to consolidate over a million square feet across of our facility footprint, and the discontinuation of several shared service contracts with GE ahead of schedule. I'm encouraged by what we have accomplished so far, and we remain confident that we will deliver a total of $250 million in synergies before 2022. Finally, we continue to deliver strong cash generation in excess of $120 million for the quarter. This was largely driven by higher financial performance. Strong cash execution will allow us to drive increased shareholder value while reducing our debt. and creating the flexibility needed to fund organic growth, acquisition, stock buybacks, and dividends. Based on our third quarter performance and current backlog and our assessment of key markets, we are affirming our cash flow from operations guidance for the full year of approximately $900 million, and we're narrowing our adjusted EPS guidance to the higher end of the range to between $415 and $420. With that, I'll turn it over to Bats, who will provide you a deeper dive into the financials. Thanks, Rafael.