Wabash Reports Big 1Q Loss

Trailer maker Wabash National (WNC) reported an adjusted loss of $10.4 million, or 45 cents per share for the first quarter, compared with a gain of $9.1 million, or 38 cents a share, for the same quarter of 2000.

These results do not include the effects of inventory and other nonrecurring charges. With those counted, the company said its basic earnings per share suffered a 79 cent loss in the current quarter compared with a 38 cent gain a year earlier.

The company, which is one of the world’s largest manufacturers of truck trailers, also manufactures and markets truck trailers under the Fruehauf trademark.

Wabash reported net sales for the quarter were $242.6 million, compared to $352.8 million for the same period last year.

Also on Tuesday, truck maker Paccar reported a first-quarter loss and said the results reflect a "recessionary truck market in North America." (See story, April 24)

Jerry Ehrlich, Chairman and Chief Executive Officer of Wabash, said the entire transportation industry is being hurt by a reduction in freight demand.

He said Wabash is still in the process of eliminating 500 jobs and restructuring its international operations. It is estimated these steps will reduce costs by over $35 million annually, beginning in the next quarter.

The Lafayette, Ind.-based company also said it is seeing some small signs of a turn-around including an increase in demand for its DuraPlate trailers.

However, Wabash said it is working to adjust inventory levels and is looking for ways to further reduce costs.

(Click here for the full press release.)

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