Wabash National to Exit Domestic Container Market

Click here to write a Letter to the Editor.

railer maker Wabash National Corp. said late Thursday it will from the domestic intermodal container market by the end of March.

The decision to exit this business will negatively impact first quarter pre-tax earnings by about $1.5 million, including about $1 million related to the write off of assets, the company said in a statement.

“It has become increasingly clear that corrugated steel boxes from China and Korea adequately satisfy customer requirements at prices significantly lower than our container offering,” said Bill Greubel, Wabash’s chief executive officer.

Over the last three years, container sales have averaged less than 3.5% of annual unit volume and have been one the company's lowest margin products, Wabash said.

he Company also noted that it expects new van trailer unit shipments in the first quarter of 2006 to be about 12,500, up about 12% from the first quarter of 2005.

Sales to core customers are expected to represent approximately 30% of units sold in the first quarter of 2006, more than double that of the 2005 quarter, the company said.