Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from David Leiker with Baird.
David Leiker – Baird
I guess just two things I want to touch on. On the China side, we’re hearing some talk that some of the sub-segments, the vocational truck markets doing a little bit better, the freight markets not up ticking, construction is not showing on the uptick? Is that consistent with what you are seeing?
Jacques Esculier
Yeah, actually the market, I would say is very confusing at this point. There is lot of elements that would actually favor or not favor a kind of gross in the market overall. Again, David, as usual, this is an incredibly complicated market to forecast. To tell you the truth, right now we see a flat to slight erosion. I would more than welcome obviously but I would not be completely surprise that we see some may be increase. So the best guess is what we share with you but I am not really kind of very strong on this guess and I don’t think it would go further down below the 5% but it could be a little bit more favorable than what we anticipate.
David Leiker – Baird
Are you seeing some of those specific end markets do a little bit better here recently or is it pretty consistent everywhere?
Jacques Esculier
I don’t think we have the details that allow us to kind of drill into the sources of movements at this point, David. The only thing is obviously we have seen a strong upturn, Q3 versus Q4 even though Q3 was drastically low compared to the first two quarters. So at least we came back to that level of 270,000 trucks. We are again kind of at 270 it’s a little bit ahead of the run rate that we all talked about the 1,050,000 for the full year, so that would kind of indicated we continue like this may be we could be (inaudible) flattish market we are right now…
David Leiker – Baird
Okay, great and then the one other item here is on the North America side looks like you have got some nice attraction there growing faster than the market but when we look at your sale 11% percent North America, North America 16% of build what’s the timeline do you think for closing those gaps, closing that gap with your sales mix is closer to what the build mix is?
Jacques Esculier
In the US.
David Leiker – Baird
In North America you show your sales I am looking at slide nine, North America is 11% of your sales but it’s 16% of global production and getting those two closer aligned…
Jacques Esculier
Yeah I am sorry David I had not understood your question. So yes as you know we are putting a lot of focus right now at growing the region and that’s why we sent (inaudible) as the head of this business to kind of separate all the different forces we have and consolidate them and basically plant the WABCO flag in that region and we see already quite a bit of momentum as you have seen we (inaudible) really nicely outperform we want some good business at Navistar which is kind of very new to WABCO and Navistar now. We really keep kind of driving this AMT technology, this OnGuard technology. So I think that and I want to strategically really kind of increase the level of presence of WABCO and you said that we need to have an alignment between the share of the commercial vehicle market and the share of our revenues kind of closing that gap.
Operator
Our next question comes from Robert Kosowsky with Sidoti.
Robert Kosowsky – Sidoti
I was wondering if you can talk a little bit about, it looks like you underperformed in Europe by about 1%, some other factors that of the underperformance and if we do get a little better economy comment on the Europe maybe 2014 or so would you see an acceleration of market outgrowth?
Jacques Esculier
Yeah, couple of things I would list, one that’s some kind of a internal reshuffling of the phase, there were some players extremely ready pay AMT that was sold to Volvo for the US market, actually we are selling them out of Europe and before we are counting them into our European numbers now we have shifted them to the US numbers and that created the gap.
The second thing is that we have seen as we have explained to you earlier in the year, we have seen the introduction of this dual sourcing strategy at one of our key customer that has introduced a second source of braking system this year and that obviously also impact year the overall performance that customer that has basically kind of decided to outsource some of their key elements, and then there is obviously kind of all kinds of mix and (inaudible) but the two pillars is really that kind of shift of how we come for this AMT at Volvo and this loss of revenues because of this outsourcing that we had mentioned in Q2 or Q3.
Robert Kosowsky – Sidoti
And then continuing on the case, do you see any impact to content per vehicle once the Euro 6 comes online.
Jacques Esculier
No. We don’t ourselves contribute or participate in that Euro 6 movement. It’s really kind of mostly focused on the engine and the exhaust system and we don’t participate in these elements beyond obviously the compressor. So what we will take from the pre- buy this year but unfortunately we did not release the content of the vehicle at least as we see it today.
Robert Kosowsky – Sidoti
Okay, but that was more coming from to more expensive trucks so is that going to Euro at some of the more discretionary items you might have.
Jacques Esculier
I think that overall the you are talking about probably the options right that people select on their prices that there maybe a little bit less encouraged to select options if they have to pay 10,000 more. But I think the products and systems that we bring to the world of commercial vehicles usually have their financial kind of reason and support in terms of payback.
So you are talking about AMP, you are talking about all the kind of trucks compressor, everything that kind of sell through. Usually its pretty sound as a value and then the rest s safety and most of the safety equipment is driven by regulations so there is not much of a choice. I would say Robin I would not at this point take this as a measureable factor overall.
Robert Kosowsky – Sidoti
Then finally as regarding North America how do you see the adoption of disc brakes going and I know you mentioned some AMT adoption as well, and I was wondering if you could maybe give us some numbers or even just some color as to how you see that plan out.
Jacques Esculier
Well, we see really Volvo making some nice inroads on that AMT. I understand about 40% of their production right now seems to be equipped with AMT. I know that Daimler is working very hard with actually us to introduce AMT in the US as well. So I think the market is more and more convinced of the value of AMT overall. The disc brake is little bit less here. There are a lot of debates out there as you know, but it doesn’t seem there is yet a regulation on the horizon that would just make it a definite switch from the world of drum brakes.
It’s just a matter of time. Again we said that time and time again, we continue to obviously highlight this with the authorities over there. We have a technology that should allow a truck to stop with a significantly shorter distance and for me it doesn’t make sense that we continue like this forever but for whatever reason there is some business delay. Now one thing that is good though it seems that this is really kind of very strong at pushing the stability control regulation and we expect that to happen maybe in the next two years. And that’s a good obviously addition to the content per vehicle.
Operator
Our next question comes from Brett Lindsay with KeyBanc Capital Markets.
Brett Lindsay – KeyBanc Capital Markets
Just wanted to circle back on Europe. You guys tightened the outlook range there, could you just talk about what you are seeing or hearing from customers that gave you confidence, and then relative to your prior expectation for flattish to down 10, how much of that is driven by greater confidence in the market versus higher expectation for pre-buy during the year?
Jacques Esculier
Well, from customer spread, I am telling you, it goes a little bit left and right. There are some customers who are [lying] with us, kind of forecasting at these points a further erosion in truck (inaudible). There are couple that are maybe slightly more optimistic, maybe even talking. I think there is one talking about a slight increase, but there is only one. The other one is more flattish type of forecast.
So that’s usual, because it’s a very complicated thing to forecast at this level of accuracy. But when I review overall what the customers says, I don’t feel that our forecast is unreasonable. Now where we kind of seen maybe, some kind of positive inputs which led us to maybe be a little bit less negative or less negative on the evolution of things is that the level of orders has shown a little upturn lately in the last quarter of last year.
So the order book also is lower, first quarter, second quarter then the sales we have seen last year in that kind of 10ish% percentage type of thing. So when you look at the order book for Europe, versus the sales of 2012 to Q1, Q2, we are kind of 10ish% lower, but the overall order book for the year, the other order book goes as far as you want but obviously mostly for the year is actually up.
So we kind of see that, we positively will continue to see a weak market in the first half and then the second half should get stronger hopefully supported by the economy but as you said also driven by this pre-buy. Again the pre-buy is viewed from different customers in different ways. We kind of anticipate 10,000 trucks, some people will challenge that it could be a lot more. So people may challenge it’s probably not that important, but that’s the assumption that we took aboard and I am telling you I am more than ready to be proven wrong in the right direction.
Brett Lindsay – KeyBanc Capital Markets
So with the 10,000 trucks for pre-buy what type of base level production are you driving that off of in 2012. So as a rate of growth what’s the contribution?
Jacques Esculier
When you look at overall Western Europe, we are focusing something like 110,000 of trucks a quarter. So it would be 10% more of one quarter kind of thing.
Brett Lindsay – KeyBanc Capital Markets
Last question here, I know you guys don’t give quarterly guidance. But if you could just help us frame how the Euro builds quarterly. I understand that some of the BRIC economies are might be going to develop a little bit better than the developed markets in the front half and just how that impacts both the top line and margins as we progress for the year?
Jacques Esculier
Well I think we are going to have probably a little bit more of a challenging first half in certain regions expect in South America where we are going to see a sound growth, right. But you look in Europe, you look in North America overall, when you look at the number of trucks our assumption is kind of flat across the year. But the number of trucks will be up.
But when you look at the comparison versus last year between 2012, because we have seen a drastic drop in the second half, when you compared H1, 2013 to H1, 2012 you are going to find probably a larger gap then if you look at the H2, H2 maybe actually favorable but H1 make sure gap, the level of production though we are assuming overall for the global production levels as sluggish H1 to H2.
Brett Lindsay – KeyBanc Capital Markets
So should we infer that the two to four points or the two to seven point of total core growth, how much of that is related to your out growth potential within those markets, if you are looking for flattish production globally?
Jacques Esculier
No, I am sorry. I missed, I didn’t express properly. The quarterly production rate or the H1 production rate, H1, 2013 should be fairly consistent with H2, 2013. It’s not like we are seeing a ramp up in the production level of trucks, right next year.
So the production level should be kind of (inaudible) across the year. Now when you compare to 2012 which has been H1 that was stronger than the H2 actually we have lost H1 to H2 I think about 10.5%, 10% trucks, right, so 2012 was a decline in H2 versus H1. 2013 we kind of see flat in production levels meaning that the H1 will be more challenged in terms of year-over-year comparisons in revenues and compensate by a better H2.
Operator
Our next question comes from Alex Potter with Piper Jaffray.
Alex Potter – Piper Jaffray
I was wondering if you could comment a bit on the regional variation within Europe and whether you are seeing Northern and Western Europe starting to struggle a bit and whether or not that might have an impact on your mix from a margin standpoint?
Jacques Esculier
We still see Southern Europe very weak compared to Northern Europe, obviously there is no real change in trend at this point when you look at the 1000 countries, you know, the Italy, Spain, Portugal or Greece. And obviously, the strength still comes from the Northern part of Europe. Now when you look at Eastern Europe, Eastern Europe part of the European Union versus Western Europe and that is a little different you know, this year we see that the production in Western Europe went down about 9.4%, but in Eastern Europe it would have gone down which represents mostly Russia, it represents about 2.5% to 3% down, so Eastern Europe has been holding up better than Western Europe, Russia has been better, and again 2013 we think is going to still be the case. We kind of see Eastern Europe mostly flattish versus 2012 and we see Western Europe declining.
Alex Potter – Piper Jaffray
Okay, thanks. I was wondering also if you can comment a bit on CapEx and R&D; how do you plan to be spending money on those two items?
Jacques Esculier
Well, CapEx we basically continue we think to go in the same kind of past we are going to be in that $100 million plus investment. We are going to this year build a new factory in Eastern Europe. We have already purchased the land and we should open in the first quarter of 2014. We are also building a new factory in India, close to Delhi to support TATA Motors, plus the normal kind of activity to grow our business through new products globally, further globalization. Now when you look at OpEx, we continue to invest, as I told you we are investing about $10 million and inflation counts for another $10 million to $11 million and then as we really has gone through it with you when you look at ’12 to ’13 there is about a kind of $15-ish million at the OpEx level of one timers, but still there’s room for a sound $10 million of continuous investment mostly in R&D.
Operator
Our next question comes from Tim Denoyer with Wolfe Trahan.
Tim Denoyer – Wolfe Trahan
A question on just the overall content growth outlook for 2013; it seems like your weighted average end markets are down a few percent and with sales expected to be up 2% to 7%. Is it fair to think about the content growth as sort of 4% or 5% at the low end to maybe 10% at the high end?
Jacques Esculier
No, I would say, Tim, that we count on an outperformance level overall, the way we have defined our performance in this 5%, 6%, region; we’re not firing on all cylinders because the market doesn’t allow us to fire on all cylinders, because those markets where we outperform more, namely the grids, are not yet and itself kind of really growing the way they should in our model, but we should still be able to reach 5% to 6% and that’s basically going across the range. So if we do say 2% to 7%, we would kind of mirror that with again, a bracket that would kind of characterize the market evolution itself.
Tim Denoyer – Wolfe Trahan
Okay, great. And how about within another sort of aspect of this, with channel destocking, it seems like there has been a decent amount of destocking over the past few quarters and you mentioned Brazil started to restock a little bit. Can you talk about your expectation within the guidance for channel restocking or like thereof in 2013 and specifically with China, what are you seeing there and what that might mean for the Chinese production outlook?
Jacques Esculier
No, I think right now destocking from the customer standpoint, I don’t think there is really much movement. I think there is restocking of our parts to support an increased production level. Now to be fair I think the restocking in South America has been really building up already fairly strongly in the last couple of quarters, because right now we are that’s 50,000 trucks per quarter level and we see a mixture at about 200, so we should be close to the runway. I don’t think there is really any destocking or restocking in China except if those guys finally increase the production rates, so I don’t see really a significant impact of those things at this point. Now one thing that I wanted to tell you, the low end of our, just to kind of put some flavor to our guidance, the low end of our guidance would assume that the production level across 2013 is reflective of what we have seen in Q4 2012, that’s the low end. So you take 2012 fourth quarter and you project that run rate to the entire 2013 year and that gives you the low end of our forecast.
Uli Michel
And the high end is the cover.
Jacques Esculier
Yeah the high end would just be kind of an incremental increase of production from that base.
Tim Denoyer – Wolfe Trahan
Okay, great thank you very much. If I could just sneak in one more, quick one, on the price then, I am just wondering why you are expecting the one to one and a 0.5% in 2013 whereas the last year or two you have had a much better performance in that?
Jacques Esculier
That’s a challenge you have when you get an exceptional level of performance, but we told you that it was hardly sustainable. I think 0.6 unfortunately maybe an exceptional EBIT of an operation that is the crossing of all kinds of different things converging this year to some (inaudible) delivery that is again kind of exceptional and we remember in that we used to be in the 2.5% prior 2009 and that was really the pace of the industry at the time because of everything happened since then obviously we have been able to contain that a lot down and also working harder basically to mitigate that pressure. I would anticipate that at this point looking ahead that 1 and 1.5 is still a very challenging level to maintain but probably more reasonable and adequate forecast for us at this point.
Operator
Our next question comes from Jerry Revich from Goldman Sachs.
Jerry Revich – Goldman Sachs
I am wondering if you could talk about which region do you expect to be the biggest drivers to our market outgrowth this year and how big of a contribution now you are expecting from the vacuum pump business, how is that ramp going on ‘13 versus ‘12?
Jacques Esculier
Well, first region wise, there is nothing really drastically different from the kind of model that we have been kind of driving through in the last year’s meeting that, we expect always more outperformance coming from emerging markets from the China, India, Brazil but we also expect probably some continuous good news from the US. As I said before, we are putting a lot of efforts into growing our share and presence in that market…
Uli Michel
And cost should also help.
Jacques Esculier
And cost should also help. Actually, we are cranking up this production to support GM and Chrysler.
Uli Michel
Chrysler in the US.
Jacques Esculier
And we see also an increased penetration of our vacuum pumps in China. So overall, I’ll tell you I was disappointed in 2012 because obviously we haven’t seen the volumes coming from those guys as we were supposed to, but we still have very strong contracts and very significant share of that market and at the end of the day, we kind of feel like we should see finally some good revenues, healthy revenues coming from that, that would help again as you know outperformance.
Jerry Revich – Goldman Sachs
And just the extended production ramp, can you just help us get a sense you’ve obviously provided very clear visibility on the multi-year market share targets based on contracts and handed vacuum pumps and I am just wondering how much of that comes in 2013 versus following years?
Jacques Esculier
You want…
Uli Michel
I don’t know.
Jacques Esculier
I can tell you that frankly I don’t have these numbers, this latest kind of forecast of costs; I know its going up versus late this year. This year it went down actually. I think we are down by 5% or 6% in vacuum pumps and next year it should be I think if I remember about 13% up but again this year it was disappointing hopefully these kind of 13% up for next year will mature that now, where its coming from, what customer, what region, I’m sorry I don’t have the data with me.
Jerry Revich – Goldman Sachs
And lastly, can you talk about what’s driving inflation in your raw materials guidance and relatively benign inflation environment and how back end loaded is that inflation forecast?
Uli Michel
It’s mostly steel that’s driving the inflation and we see a lot of pressure, especially in India and also increasingly in China by our suppliers to part on energy inflation as part of the raw material prices. And you know we have a time lag in negotiating steel between half the year sometimes its annual negotiation once a year, so we carry this year’s prices into the first half of next year.
Operator
Our next question comes from Ed Wheeler with Buckingham Research.
Ed Wheeler – Buckingham Research
I would like to circle back on the production that you talked about in terms of first half, second half because I guess I’m feeling I’m missing something. It looks pretty clear the North American guys are going to be low beginning and much stronger going through the year. my sense is the European OEMs are still kind of producing under the market of correct inventories so it just feels like your customers are going to be making more trucks in the second half, I mean maybe there is some other regional detail I don’t have and I would like to get it to square up that first half, second half production comment?
Uli Michel
But I think that’s in a nutshell what Jacques described before was the scenario in the low end of our guidance range. So that means if you want to be a bit conservative do you say the markets to only recover very mildly or not and on the higher end of our guidance you could assume that there are higher production levels mostly in the second half of the year. That should close together — from Jacques and what you might have heard from our customers.
Ed Wheeler – Buckingham Research
And I guess one other question, in terms of just the after market performance was awfully good. I am wondering, are you seeing the same better than 5% after market activity as you look at the first few weeks and months of 2013?
Jacques Esculier
Actually, our current estimate (inaudible). As you might know, the after market is actually fairly strong. I mean, I am looking at relative to what we have seen back in 2012. So I feel kind of good about this 5%. I don’t think we are going to much higher than that this year. But you know, the trade in after market is slight increase lately that would at least indicate that there is a good level of utilization of the fleet out there and as I said, would be an indicator. We don’t say we don’t think the market will go any further down. That’s why we kind of said the low end of our kind of guidance in the first half of it would be more kind of flat at this level where we are, we had experienced in Q4 but again as we said, potential upside in the second half.
Ed Wheeler – Buckingham Research
I guess I am trying to interpret. I think you (inaudible) after market activity would suggest at least for this second that the low end is maybe not the most likely forecast but it’s possible. But I am trying to sort of bracket the low end forecast with what’s happening in the after market?
Jacques Esculier
I think that the first half, particularly the first quarter, Ted, I think we would not expect much of an improvement versus what we are seeing I think what we told you is its probably towards the second half of the year that we could expect some potential upsides from our key markets, but when you look what our customers are telling us as I told you the order book for Q1 is kind of 10ish percent down I mean don’t take this as concrete because it’s not end of the quarter yet but I think it indicates that there is a slowdown year-over-year, remember it’s not quarter-over-quarter.
So at this point, we don’t expect anywhere a major kind of upturn in any market but there are a lot of ingredients whether from the economy or from this pre-buy in Europe that could kind of lead us to believe that the second half may be better than this current level of production which again would kind of drag you to the upper end of our guidance.
Ed Wheeler – Buckingham Research
And just one other when you brought up the pre-buy, you mentioned the order book year-to-year is slightly up I would assume there is no pre-buy orders in the order book yet is that a fair assumption?
Uli Michel
We don’t.
Jacques Esculier
I mean (inaudible) question to us because I think our customers, some customers are again expecting that there would be a pre-buy some customers are right now sharing with you guys results that they don’t expect that much that significant of a pre-buy I think each of them has their own kind of approach to kind of drive this through the order books to their supplies.
Ed Wheeler – Buckingham Research
I wouldn’t expect it to be in the order book today, right?
Uli Michel
In general, we should say although we do get 12 months rolling forecast in some of our OE placed 12 months forward orders with us. The reliability beyond the three month horizon is fairly questionable. They keep switching orders, so I don’t think they had pre-buys in the order book at the moment.
Operator
Our next question comes from Larry De Maria with William Blair.
Larry De Maria – William Blair
Few questions you mentioned you have two new factories and that works, are those most that support incremental growth or will you be shifting some of your higher cost production to those maybe lower cost factories which could be better for you overtime?
Jacques Esculier
The Eastern Europe is both, but Eastern Europe production center is obviously driving also support in growth that we see, they are all supporting from that part of the world. This additional factory in India is also kind of helping growth, but the reason the main to be is to be closed to TATA motors factory for operational reason as well as, as know in India there is a complication that if you cross some regional borders you have to pay taxes.
So at a certain level if becomes efficient to position a factory next to your customers and that’s obviously a major center of revenue for us. So we will start putting some manufacturing there as well, but again overall India is right now struggling, but it is not in the long term logic of that region. I think we can very secure a forecast of long term growth and continuous growth in India and continue to increase capacity is probably in line with reasonable approach there.
Larry De Maria – William Blair
Okay, thanks and then just two more. Can you just update us on your thoughts about the age of the fleet in Europe and whether there is actually pent up demands to buy trucks or if it really needs an economic, really strong economic recovery to really move the needle in Europe absent obviously the pre-buy noise. That will be number one and second is, you talked about obviously gaining some share in China and ADS made because of Brazil, how do we think about the out performance over the next year or two down in both of those markets sort of still be solid double digit out performance or is it moderator just any color on that would be very helpful. Thanks.
Jacques Esculier
Yeah, we don’t really give any numbers of our performance what we said is probably double digit in those emerging markets, and this is our objective obviously depending on the movements of the markets themselves, because any kind of shrinkage in the demand will lead to rationalization of inventories and all this that we have seen. But I think if you look at our track records and in light of the evolution of markets, you will see that we continue to have a pretty healthy out performance over there, which is obviously a lot higher than what we see historically as well in more mature markets particularly in Europe.
Now in terms of H fleet we kind of see that there is about six years average right now. We would anticipate that there is when we talk to fleets, they have a hesitation to invest at this point. There is a political environment that is not incredibly favorable right now to investments and we probably would postpone the investments like we have seen in the US.
So I think there is a pent up demand that is kind of building up right now for renewal of all the trucks and that’s obviously the release of that demand that probably would give us some upturn in case the mood would be a little bit more favorable and more optimistic in the coming months and quarters.
Larry De Maria – William Blair
Is there a number when you are talking to those carriers at six years average that they feel like they can go to seven or eight in that really downturn or is six as high as they want to go and they are obviously just hesitant to take that number down or what’s the range on that number.
Jacques Esculier
No, we should qualify a little bit. This is the average age for the European fleet. If you look at it country by country US countries where the average age is eight or nine years and its always been that old and its not under developed countries, its just the way they use their truck and where they might have long for example Sweden with a long haul lock applications we have a high age fleet.
So you cannot look at this as a uniform European market, right. But in general the age is higher. Now again if you look at it, for example, on the southern European fleet, they might have a fairly old age, but if they do not have transportation need they will still keep driving these old trucks and the inflation rate will be lower than the level of purchases five, six years back.
Uli Michel
I think if you look at what happened in the US, obviously those trucks, I mean we are talking about very young trucks, a truck of six years of age is incredibly young. A normal truck in Europe can live 20 plus years. Now it goes with different phases, so it’s not like an eight years or 10 years a truck must be changed. I think it really is like we have seen in the US depending on the overall environmental and what is even more important the used truck market, because remember that when a fleet changes a truck they have to sell their used truck and there are some privileged channels, one of them being obviously eastern Europe, the other one being Middle East, Africa and if those channels are struggling right now, which is again by the way the Middle East, you may see kind of a slowdown.
Like same thing we have seen in the later years in the US. So it’s a complicated kind of question mark but my feeling is, if the economy is not favoring a renewal of the fleet, fleets can hold down to their current truck and as we said, by the way, if the trucks are not used to their full potential, they are aging in years but they are not aging in kilometers.
Larry De Maria – William Blair
Thank you very much. I appreciate that answer. So I guess it is safe to assume that the used market is not entirely [cooperative] right now given what’s going on. But if that turns, that’s another (inaudible) fact that can help you guys. But thanks very much and good luck to share. Shanks for doing a long call.
Operator
Our next question comes from Tim Denoyer.
Tim Denoyer – Wolfe Trahan
I wanted to focus on the Brazil truck market, if you can for just a second; Brazil trailers in particular. Can you just [asses] the size of the Brazil trailer market and what you think within the ABS regulations. I believe the ABS regulations is for 40% of the trucks this year. Is it the same for trailers?
Uli Michel
I am looking at my sheet as you speak. But we would see the Brazilian trailer market, I have here for the full-year 50,000 to 60,000 trailers magnitude.
Jacques Esculier
We have about 200,000 trucks that would be about a (inaudible).
Uli Michel
So 57, 54 and growing I think in the 8% to 10% next year, the trailer market.
Tim Denoyer – Wolfe Trahan
Okay, in terms of the ABS, content growth, I think you said in the release that you have a roughly 45% share of that. Is that going to go across the entire Brazil trailer production or is it just a fraction?
Uli Michel
That’s a good question I don’t know whether there…
Tim Denoyer – Wolfe Trahan
They will be ultimately.
Uli Michel
Tim I don’t know if they cover all trailer in the first step or whether it’s a phased approach. We can’t cover explain at the top of our head, whether the legislation covers the full park in year one or whether it’s a phased introduction by type of vehicle or by type of units.
Jacques Esculier
Sorry for that we don’t have the answer.
Tim Denoyer – Wolfe Trahan
No problem I think it’s fairly too attractive and probably the same. But thanks very much.
Operator
I am not showing any further questions at this time. I would like to turn the conference back over to our host for closing remarks.
Jacques Esculier
Okay, well thank you guys for attending and I will talk to you in three months for the first quarter results. Thank you.
Operator
Ladies and gentlemen, this does concludes’ today’s presentation you may now disconnect and have a wonderful day.
Source Article from http://seekingalpha.com/article/1187921-wabco-holdings-ceo-discusses-q4-2012-results-earnings-call-transcript
