Wabash forms joint venture, reports Q3 revenue

American logistics equipment provider, Wabash, has announced it will launch a joint venture with investment firm Fernweh Group.

The Indiana-based company is hoping to drive a “significant expansion” of its Wabash Parts distribution network and Trailers as a Service capabilities, and to enhance the company’s e-commerce platform and partner ecosystem.

The new business is intended to accelerate Wabash’s development and growth of an end-to-end digital platform and under terms of the deal, Wabash will have a 49 per cent interest and California-based Fernweh will hold a 51 per cent share.

“The transportation, logistics and distribution industry continues to experience a rapid pace of change,” said Wabash President and CEO, Brent Yeagy. “In 2020 we made a strategic pivot to transform the company so Wabash would be ready to meet the needs of the future, including shifting resources to lead the end-to-end digital transformation of our industry. This joint venture with Fernweh is the next step in that transformation and will allow Wabash to experiment, learn and iterate with speed.”

Meanwhile, Wabash has reported results for the quarter ended September 30, 2023.

The company’s net sales for the third quarter of 2023 reached $632.8 million, reflecting a 3.4 per cent decrease compared to the same quarter of the previous year. The company achieved consolidated gross profit of $123 million, equivalent to 19.4 per cent of sales.

Operating income amounted to $77.6 million, representing 12.3 per cent of sales for the quarter. These results exceeded prior expectations, primarily due to the company’s strong material margin, favourable product mix, and strong results from parts and services, tanks, and truck bodies.

As of September 30, 2023, total company backlog stood at approximately $1.9 billion, a decrease of 20 per cent compared to the third quarter of 2022 as the timing of order activity is likely to come toward the later end of typical seasonal patterns for the industry.

“We’ve successfully created value by redefining our relationships with customers and suppliers, and now, we’re ready to take it to the next level,” Yeagy said. “With digital transformation as our compass, we are poised to extend our reach even further within the dynamic segments of transportation, logistics, and distribution as we set the groundwork to deliver an innovative digital marketplace that will endeavour to enhance efficiency for our customers by pulling on the full breadth of our partner ecosystem.”

Yeagy said the company is poised to generate significant free cash flow in 2023 even while making meaningful investments in operations.

In other news, TIP Group has acquired Botlek Trailer Services, one of Rotterdam’s oldest family-owned transport companies.

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