Wabash National shows 3Q gains

Oct. 21, 2004
Wabash National Corporation said net sales for the third quarter were $277 million compared to $215 million for the same period last year, and net income was $20 million or $0.62 per share, compared to a loss of $30 million or $1.16 per share.

Wabash National Corporation said net sales for the third quarter were $277 million compared to $215 million for the same period last year, and net income was $20 million or $0.62 per share, compared to a loss of $30 million or $1.16 per share.

For the nine months ending September 30, net sales were $754 million compared to $668 million for 2003. Net income for the first nine months of 2004 totaled $45 million or $1.42 per share, compared to a net loss of $55 million or $2.19 per share. Sales for the three and nine month periods ending September 30, 2003, included $18 million and $59 million, respectively, of sales associated with certain assets of Wabash’s trailer rental and leasing and wholesale aftermarket parts distribution businesses, which were sold in September 2003. Results for the third quarter of 2003 also include a $19 million debt extinguishing charge equal to $0.74 per share.

"We continue to execute our business plan reporting solid results despite challenging supply conditions,” said Bill Greubel, president and CEO. “We are also grateful to report that our retail and distribution segment reported profitability in the third quarter. Relative to supply issues we encountered, key raw material price and availability issues that were accentuated by an unanticipated sharp jump in steel pricing mid-way through the quarter which we were unable to pass through to our customers in a timely manner.

“Manufacturing productivity, while continuing to improve, was somewhat adversely affected due to product mix and supply chain constraints. Working capital for the quarter increased as we adjusted inventory levels. We are becoming more comfortable that our supply chain will be able to support steady growth in this segment. Quote and order patterns continue to register year over year gains during the seasonally slow summer period of the year and into the fourth quarter. Fleet utilization levels remain high, suggesting continued demand for both growth and replacement equipment."

New trailer unit sales amounted to 13,700 units and 37,500 units for the three- and nine-month periods of 2004, respectively, compared to 9,900 and 29,700 units for the comparable 2003 periods.