Wabash Reports Improved 1Q Income; Predicts Pickup in Trailer Shipments
Trailer manufacturer Wabash National Corp. said its first-quarter income improved, and the company said it expects a “significant increase” in trailer shipments in the second quarter.
Net income rose to $5.7 million, or 8 cents a share, from $5.1 million, or 7 cents, a year ago, Wabash said late Tuesday.
Net sales of Wabash’s commercial trailer products fell 18.6% to $198.1 million, but the company said average selling prices rose 4.7%, or $1,100, as raw materials costs increased.
Trailer operating income fell about $1 million to $5.3 million, primarily due to lower trailer shipments.
Wabash shipped about 8,600 new trailers in the quarter, consistent with its guidance, CEO Dick Giromini said in a statement, adding that the company predicts a stronger second quarter with about 11,000 to 12,000 trailer shipments.
“We continue to expect full-year trailer shipments to be between 45,000 and 48,000 units,” Giromini said, adding that Wabash’s backlog increased during the quarter and was at a “healthy level” of about $674 million at the end of March.
“Longer-term, we believe the demand environment for trailers will remain strong as key drivers support continued demand for new trailers such as fleet age, customer profitability, used trailer values, regulatory compliance and access to financing all support continued demand for new trailers,” he said.
