Wabash Reports Mixed First-Quarter, Full-Year Earnings
Trailer maker Wabash National Corp. reported revenue increased in the fourth quarter and set an all-time record for the full year, annual shipments were at near-record volumes, but net income dropped in both periods.
In the quarter ended Dec. 31, net income tumbled to $11.5 million, or 21 cents per diluted share, compared with $49.3 million, or 80 cents, a year earlier.
The Lafayette, Ind.-based company said it felt the bite of supplier disruptions as well as increased labor and material costs.
Revenue rose to $610.1 million compared with $543.4 million a year earlier.
Wabash shipped 17,500 new trailers compared with 16,150 in the same period a year ago.
“Due in part to the strength in demand conditions, all three of our reporting segments faced continued operating pressures which negatively impacted our margins. We are highly focused on reducing the cost pressures that included a shortage of chassis and other components as well as increased labor and material costs,” CEO Brent Yeagy said.
“We have taken action to improve pricing across all three business segments in order to recover higher materials and manufacturing costs. We launched additional productivity initiatives and bolstered supply chain effectiveness through both resourcing and planning improvements. We are confident that these actions will address the short-term operating pressures to clear the way for improved margin performance in 2019,” Yeagy added.
Its fourth-quarter backlog increased 47% year-over-year to $1.8 billion.
For the year, meanwhile, net income declined to $69.4 million, or $1.19, compared with $111.4 million, or $1.78, the year before.
Revenue for the year was $2.26 billion — the highest in the company’s 33-year history, Yeagy said. In 2017, revenue was $1.76 billion.
Wabash shipped 62,150 new trailers last year compared with 55,050 the year before. That generated sales of $473.1 million compared with $408.4 the previous year.
Looking to 2019, Yeagy said Wabash expects some level of short-term supplier and cost challenges continuing into the new year.
“I am confident in our team’s ability to successfully navigate these issues as we focus on mitigating supplier disruptions and driving increased productivity,” he said.
He forecast 2019 full-year revenue between $2.25 billion and $2.35 billion based on its current backlog and earnings per diluted share between $1.50 and $1.70 based on the carryover of supply disruption and cost pressures moving into 2019.
