Wabash Reports 1Q Gains, Record Backlog
Trailer maker Wabash National Corp. posted slightly higher net income in the first quarter as revenue and backlog soared.
Net income for the period ended March 31 was $21.3 million, or 35 cents per diluted share, compared with $20.2 million, or 32 cents, a year earlier.
Net revenue rose 36% to $491 million compared with $363 million in the prior-year quarter.
“We are pleased to report record first-quarter top-line results, driven by a strong overall demand environment, greater-than-anticipated new trailer shipments of 13,200, and further supported by the revenue delivered from our expanded Final Mile business,” CEO Dick Giromini said.
Giromini
The increase reflected growth in each of the company’s three operating segments due to strong demand and the favorable impact of the acquisition of truck body builder Supreme Industries Inc. in September 2017, according to the Lafayette, Ind.-based company.
Backlog grew once again, reaching record levels of $1.3 billion, with sequential increases of 40% and 50% within the Diversified Products and Final Mile segments, respectively.
Commercial Trailer Products’ net sales for the first quarter were $327 million, an increase of $53 million, or 19%, compared with the prior year.
Diversified Products’ net sales for the quarter were $95 million, an increase of $5 million, or 6% year-over-year, due primarily to the increased demand for liquid-tank trailers.
Final Mile Products’ net sales for the first quarter totaled $75 million. Truck body demand continues to be strong as backlog increased 50% compared with the prior quarter.
“As expected and previously discussed, raw material inflation, along with normal seasonally higher operating costs, further impacted margins throughout the quarter,” Giromini said in a statement.
“However, expectations are that this past quarter will represent the low-water mark of operating performance for the year as a combination of higher shipments, lower operating costs and repricing actions already taken to offset the impact of material cost increases, will all help to contribute strong results throughout the balance of the year,” he added.
