Wabash Net Income Quadruples
Wabash National Corp.’s 1Q net income soared nearly five-fold to $6.9 million, up from $1.4 million in 1Q 2003. The company cites increasing trucking activity, and high demand spurred on by a stronger economy, coupled with productivity gains as the reasons for its increase.
Sales have been flat, however, with $222 million compared with $223 million last year. Approximately $20 million dollars of the revenue is from the sale of the company’s trailer renting and leasing operation, as well as its wholesale aftermarket parts division.
Production rates remain high as a result. Wabash predicts that production rates will be sustainable in the foreseeable future.
Wabash’s retail distribution operations continue to operate at a loss, however, although it has shown improvement. The company has noted soaring commodity prices as being a detractor as well.
“Currently our greatest challenge is managing escalating costs of raw materials, including steel, aluminum, and lumber. There have been some recent signs of stabilizing steel prices, however,” said William Grreubel, Wabash president and CEO.
Net income per share was $0.23 for 1Q compared with $0.05 1Q 2003.