Wabash’s Second-Quarter Income Rises
Trailer manufacturer Wabash National Corp. said its second-quarter income increased and that it expects a “significant increase” in trailer shipments in the third quarter.
Net income rose to $14.1 million, or 20 cents a share, from $1.9 million, or 3 cents, a year ago, Wabash said late Tuesday.
In the second quarter last year, Wabash reported a $13.4 million one-time charge on the acquisition of Walker Group Holdings LLC.
Net sales of Wabash’s commercial trailer products fell 5.3% to $265.8 million, but the company said average selling price rose 2.3%, or $500, as raw materials costs increased.
Trailer operating income rose about $800,000 to $14.6 million, on improved pricing.
Wabash shipped about 11,400 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 12,500 to 13,500 trailer shipments.
“We now expect the full year trailer shipments to be between 45,500 and 47,500 units,” Giromini said, adding that Wabash’s backlog increased during the quarter and was at a “healthy level” of about $680 million at the end of June.
“Longer-term, we believe the demand environment for trailers remains strong as fleet age, customer profitability, used-trailer values, regulatory compliance and improved access to financing all support continued demand for new trailers,” he said.
