WABCO Holdings Inc. providing an update within its previously disclosed guidance issued July 19, 2018, based on its estimate of economic and market conditions for the second half of the year. The recent intensification of geopolitical dynamics is negatively impacting markets and currencies in some of WABCO's regions. WABCO now expects that truck and bus production in China will deteriorate by approximately 30% in the second half of 2018 and 11% on a full year basis, compared to 2017. In addition, this is causing a slowdown in demand from Russia and Turkey.

As a result of these economic and political conditions, WABCO expects to end in the lower half of its previously issued EPS guidance for the full year 2018. WABCO estimates the impact to the second half of 2018 reported and performance EPS to be approximately $0.20, spread evenly over the third and fourth quarters. The company will partially mitigate the effect of these market factors through cost management activities. Additionally, WABCO anticipates product engineering expenses will be more concentrated in the third quarter resulting in up to a $0.10 reported and performance EPS headwind with no impact to the full year outlook.