US trailer manufacturer, Wabash National, has reported net sales of $2.03 billion for 2015, up from $1.86 billion in the previous year. Net income rose to $104.3 million from the 2014 result of $60.9 million.
For the full year 2015, the company achieved record operating EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of $229.5 million, or 11.3 per cent of net sales, as compared to $169.0 million, or 9.1 per cent of net sales, for the previous year.
The year-over-year improvement in operating performance is reportedly attributable to the “successful execution of the company’s growth and diversification strategies” as well as operational improvements across the company’s manufacturing facilities.
Wabash President and Chief Executive Officer, Dick Giromini, commented, “We are extremely pleased with our results for 2015 as we set new records across several key financial metrics.
“The overall strength in the company’s operating performance highlights the success of our growth and diversification initiatives … while maintaining our focus and expertise in lean and six sigma optimisation initiatives.”
Despite Giromini pointing out that the company’s performance for the year “further substantiated” its transformation into a diversified industrial manufacturer, he admitted that trailer manufacturing still plays an important role for the business.
“New trailer shipments of 64,700 for the year exceeded our previous guidance due to strong customer pick-up and represents an increase of 7,350 trailers, or 12.8 per cent, as compared to the previous year.
“We look forward to 2016 with a healthy backlog of orders totalling $1.2 billion, representing an increase of 10 per cent as compared to the prior year period, and a trailer demand expected to be well above replacement levels for a fifth consecutive year.”
According to Giromini, fleet age, customer profitability, used trailer values, regulatory compliance and access to financing all support continued strong trailer demand and provide a “favourable pricing environment” within specific product lines going forward.
“We enter 2016 with great momentum from a record 2015, a strong trailer demand environment generating a strong backlog, continued excellence in operational performance across all business segments and the potential for organic growth through diversification and innovative new product introductions,” he explained.
“ With that backdrop, coupled with a strong industry demand forecast, our current expectations are for 2016 to deliver a very strong year.”