Sales climb, profits return at Wabash
Apr 30, 2003 12:00 PM, from staff and wire reportsWabash National Corp is back in the black, according to a company announcement issued April 29. The Lafayette IN-based trailer manufacturer’s net sales for the first quarter of 2003 were $223 million, compared with $162 million for the same period in 2002. Net income for the period was $1.4 million, compared with a net loss of $14.6 million for the same period last year, the company said.
“We are very pleased to be able to report the first profitable quarter in over two years,” said William P Greubel, president and chief executive officer. “New trailer demand and production in the first quarter, while nearly double that of depressed levels of the same period last year, increased approximately 10% on a sequential basis. The improvements are consistent with our view that industry demand continues to grow albeit at a slow pace. We continue to be pleased with the progress our associates are making in improving operating effectiveness and efficiency.”
Wabash has been able to reduce annual costs by more than $50 million. In addition, the company completed the amendment of its credit facilities in April 2003. The amendment revises certain of the company’s financial covenants and adjusts downward the required monthly principal payments during 2003. The amendment provides greater flexibility from both a financial covenant standpoint and from a debt repayment standpoint.