Wabash National Reports Higher Earnings on Lower Sales
Trailer manufacturer Wabash National Corp. reported year-over-year net income rose and revenue fell in the third quarter.
Net income for the period ended Sept. 30 increased to $33.4 million, or 51 cents per diluted share, compared with $31.9 million, or 47 cents.
Net sales for the third quarter decreased 13%, to $464 million from $531 million in the prior-year quarter, while operating income decreased 3% to $54.9 million as favorable pricing and operational execution across the business was offset by lower volumes.
“New trailer shipments for the third quarter were approximately 15,450, just shy of previous guidance of 15,500 to 16,500 trailers, driven by timing of customer pickups and continued slow demand in our tank trailer business,” CEO Dick Giromini said in a statement.
Wabash has a “seasonally strong” backlog of $643 million in orders and anticipates completing 2016 “as our fifth consecutive year of record operating performance,” Giromini said.
The Lafayette, Indiana-based company expects 2016 total units to be at the low end of its 60,000-to-62,000 shipment range communicated previously, according to Wabash.
Longer term, it sees orders moderating but believes the demand environment for trailers “will remain healthy as fleet age, regulatory compliance requirements and customer profitability all support an extended trailer cycle,” Giromini said.
