Wabash National Corp. Announced their 4th Q and Year End Results
The Wabash National Corp. recently announced their end of the year financial results on Wednesday. At the press conference that was held, the Co. reported that they have had a sequential and year over year improvement across the operating as well as financial metrics. They reported a $5.7 million of operating income for the 2010 year’s fourth quarter.
This is compared to the $11.9 million operating loss which was incurred in 2009′s fourth quarter. For the past twelve months which ended December 31, Wabash Corp. reported a $15.4 million and a $66.1 million operating loss for the years 2010 as well as 2009 respectively. The improvement of $50.7 million and $17.6 million in the company’s operating income for the twelve and three month’s time respectively are a result of the shipment volumes and higher production, the manufacturing and cost optimization enhancements which were implemented by Wabash Corp. from 2008 and 2009.
In addition to this the 2010 full year as well as the fourth quarter results have benefited as a result because of the favorable experience garnered from the trailer warranties which expired at $2.8 million as well as $3.2 million respectively.
The CEO and the President of Wabash trailers, Dick Giromini, said that, the company’s operating results have improved sequentially throughout all quarters in the year 2010, which culminated the best fourth quarter operating results that the company has had since 2007. The Co. has also generated a $10.8 million Operating EBITDA of the fourth quarter which is quite positive. This result was the driving force in pushing the company’s 2010 full years Operating EBITDA to a more positive $4.9 million. In all the company’s 7.2 per cent gross profit margin is 940 basis points of year over year improvement. These results were also driven because of the company’s continued efforts all through 2010 so as to optimize the cost structure, better the operational efficiency as well as enhance their capital structure and to position the company so as to meet the second part of the years recovered industry’s higher levels of demand.
He also further added that the shipments of 10,100 trailers for the year’s fourth quarter were not only met but also slightly exceeded the company’s high end guidance which was a reflection of the improved demand environment as well as improved performance of the trucks by the company’s customers for the fourth quarter. The new shipments of the trailer were 24,900 almost double compared to last year’s shipment levels, combined with the company’s approximately $480 million back log of December 31, 2010 has reinforced the company’s belief the industry’s recovery has begun and that their company is poised to benefit on the increased levels of demand.