Wabash Reports Third-Quarter Income Edged Up as Sales Slipped
Trailer manufacturer Wabash National Corp. reported third-quarter net income edged up 3% to $33 million, or 51 cents per share, compared with $32 million, or 47 cents, in the period ended Sept. 30.
Revenue dropped to $464 million, down 13% from $531 million in the 2015 period, according to Wabash, the nation’s largest trailer manufacturer.
Favorable pricing and operational execution across the business was offset by lower volumes, Wabash said.
Sales reflected shipments of 15,450 units, including 14,900 commercial trailer products (down by 600 from a year earlier) “coming in just shy of the low end of our prior guidance driven by some delayed shipments in our van business, but as well as some demand weakness in liquid tanks and platforms markets,” CEO Dick Giromini said on an earnings conference call.
The market has continued to be reasonably strong for the Lafayette, Indiana-based company’s van products. “We have, however, seen continued market softness in both our tank trailer and platform products," he said.
"They’re on pace to be down approximately 35% from last year’s levels, but then forecast by ACT Research to increase again for next year," he added. "So we may have already seen the bottom for these markets and, as exhibited by our strong financial results, have managed through it quite well.”
