Lafayette, Ind.-based Wabash National Corp., manufacturer of semi-truck trailers, produced approximately 56,000 units in 2005. In terms of big rigs, that's pretty impressive.
Also impressive is the company's 2005 results. It posted $1.2 billion in sales, a 9.2% profit margin and revenue growth of 16.6%.
But like every highway traveled, there are detours. While net sales for the first quarter 2006 were $262.1 million compared to $256.1 million for the same period last year, net income for the quarter was $4.3 million compared to $18.5 million.
"While many aspects of the business were challenged during the quarter, we continue to gain momentum with our initiatives in plant automation, product standardization and alternative sourcing, and we expect this to be demonstrated in improved future results," said Bill Greubel, CEO, in an April 26, 2006 press release. "These challenges included sales volumes being constrained by an unusually high percentage of customer equipment pick-up delays (versus factory deliveries), margin compression resulting from competitive pricing and higher raw materials costs."
In March 2006 Wabash completed its acquisition of Transcraft Corp., a designer and manufacturer of flatbed and drop-deck trailers. The acquisition makes Wabash National the largest semi-trailer manufacturer in North America based on combined 2005 unit volume, according to the company. The all-cash purchase price was approximately $71 million.
IW 50 Best Manufacturing Company
