Wabash reports $27 million net loss in 2Q

Wabash National Corporation today announced that net sales for the second quarter were $230 million, compared to $210 million for the same period last year, and net loss was $27 million, including a $29 million non-cash charge related to planned asset divestitures, compared to a net loss of $22 million for the same period last year. Diluted loss per share was $1.05 for the quarter, including a $1.09 per share charge related to planned asset divestitures, compared to a loss of $0.96 per share for the 2002 quarter. For the six months ended June 30, 2003, net sales were $453 million and a net loss of $26 million, including the $29 million charge, compared to net sales of $372 million and a net loss of $36 million for the same period last year. Diluted loss per share for the six months ended June 30, 2003 and 2002 was $1.02, including the $1.09 per share charge, and $1.61, respectively. Commenting on the quarter, William P. Greubel, President and Chief Executive Officer, stated, "The fundamental changes currently taking place within the company could prove to be a watershed period as we move to structurally improve the company, both operationally and financially."He listed some of the significant highlights from the quarter: * Sales increased 3% from the 2003 first quarter on the continuing improvement in demand for new trailers while operating income, before the $29 million charge, improved 48% over first quarter 2003 levels."We are indeed becoming earnings focused as opposed to share focused. We successfully started up two new production lines during the quarter, one line for our new Wabash FreightPro sheet and post trailer and one line for DuraPlate(R) containers. We believe trailer industry demand will continue to improve over the next several quarters. Our demand continues to be affected by our large customers managing their equipment capacity very closely."* The company is in the final planning stages of reorganizing its channels of sales and distribution, which will allow it to improve opportunities to exploit its product and service offerings in the mid to large sized fleet segments of the trailer industry while maintaining strategic relationships with the premier trucking companies in the U.S.* As announced, Wabash has signed a definitive agreement to sell substantially all of the assets of its leasing and rental business and our aftermarket parts business. Total consideration from the sale of these assets and the retained assets is approximately $65-$70 million, of which $55 million will be paid in cash upon closing.* Wabash also announced the selection of Fleet Capital to lead and fully underwrite a new $250 million syndicated bank financing for the Company. The new financing, which is subject to Fleet Bank credit approval and Wabash board approval, will be a three-year asset based revolver and term loan that will be used to replace existing indebtedness and will substantially lower the cost of debt. Closing on the transaction is expected to occur during the third quarter of this year. * Wabash also announced that it intends to raise approximately $100 million through an offering of five-year senior unsecured notes that will be convertible into shares of Wabash's common stock, subject to market and other conditions. The interest rate, conversion price and offering price are to be determined by negotiations between Wabash and the initial purchasers of the notes.