Wabash Reports Higher 1Q Earnings, Record Order Backlog
Trailer maker Wabash National Corp. reported higher first-quarter earnings and a record order backlog as demand for new equipment remained strong.
The manufacturer’s net income rose to $10.5 million, or 15 cents per share, from $7.3 million, or 10 cents, a year ago. Revenue surged 22% to $438 million, a first-quarter record for the company.
Wabash said it shipped 14,350 new trailers during the quarter, up from 9,900 a year ago and surpassing its guidance of 12,000 to 13,000 units as customer pickups accelerated in the back half of the quarter.
Despite that “unseasonally strong” shipment total, Wabash’s order backlog expanded during the quarter to a record $1.2 billion, representing about eight months of production, CEO Dick Giromini said on the company’s April 28 earnings call.
Wabash said it expects to ship between 62,000 and 66,000 trailers this year, up from 57,350 in 2014.
“Looking forward, in contrast to some who may be calling the end of the cycle, we anticipate a continuance of a strong order demand environment, supporting pricing and volume growth,” Giromini said.
He predicted that demand for new trailers will continue to be strong as high freight levels support carriers’ efforts to increase rates and improve profitability. “Excessive” fleet age and regulatory compliance requirements also will support demand, he said.
In the short-term, however, tight manufacturing capacity may limit new order activity.
“With the most manufacturers and supplier slots all but filled for the current year, it is understandable and expected that overall industry monthly order levels will likely continue to be lower on a year-over-year basis until we get to midyear, when manufacturers will once again look to open up slots for 2016 builds and customers begin to more seriously consider their 2016 purchase plans,” Giromini said. “In fact, numerous customers have requested to place additional orders for 2015 production that have had to be turned away due to timing needs or capacity restrictions.”
