Wabash Reports Lower First-Quarter Net Income, Revenue
Trailer maker Wabash National Corp. reported lower net income and revenue for the first quarter amid fewer trailer shipments due primarily to timing issues.
Net income for the period ended March 31 dropped 26% to $20.2 million, or 32 cents per share, compared with $27.5 million, or 42 cents, a year earlier.
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Operating income, or earnings before interest and taxes, however, was $30.3 million, the second-best first quarter performance in its history, the company said.
Revenue fell 19% to $363 million, compared with $448 million in the 2016 period.
“Performance targets in cost management and execution were achieved within both commercial trailer products and diversified products, as gross margins delivered were consistent with expectations previously communicated, despite trailer shipments slightly below prior guidance due strictly to timing of customer pickup,” Wabash CEO Dick Giromini said in a statement.
At the same time, its backlog grew to a “seasonally and historically strong” $863 million, which supports the company’s “long-standing belief” that market demand will be driven by trailer fleet age, regulatory compliance requirements and customer profitability, Giromini said.
In the quarter, new trailer shipments declined to 10,400, compared with 14,000 a year earlier; revenue fell 25% to $274.7 million, compared with $364 million.
Its diversified products division’s revenue year-over-year increased 4% to $89.9 million, due primarily to higher demand for its composite product offerings as tank trailer shipments were flat, the Lafayette, Ind.-based company said.
Wabash increased its full-year shipment guidance to between 52,000 to 56,000 trailers.