Sales are up, but net income is down for a major Lafayette manufacturer. That's part of the second quarter resultsfor Wabash National.
Figures show the net sales are up 20.7% from the previous second quarter. Net income of $1.9 million is lower than the same period last year due to Wabash National acquiring Walker Group Holdings LLC, which makes liquid-transportation systems and products.
President and CEO Dick Giromini says this type of diversification offers new market opportunities and reduces the negative effects of the trailer industry’s cyclical nature.
"Specifically, our Wabash Composites and Wabash Energy & Environmental Solutions products continue to garner considerable interest and generate strong revenue and earnings growth."
He says the company remains focused on improving price and enhancing margins in its core commercial trailer products business.
"The combination of these initiatives drove gross margins during the second quarter to double digits for the first time since 2005 as the mix of higher margin trailer orders improved during the quarter."
Wabash National's new trailer shipments improved sequentially and year-over-year to approximately 12,000 units for the second quarter. In addition, the company continues to realize a backlog of approximately $713 million as of June 30, 2012 including Walker's backlog of approximately $190 million.
Giromini says they are revising their guidance for full year new trailer shipments to 48,000-52,000 units, inclusive of Walker.