Wabash National Corporation, a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems, today reported results for the quarter ended June 30, 2019.

Net sales for the second quarter 2019 increased 2 percent to $626 million from $613 million in the prior year quarter, as growth was led by the Company’s Final Mile and Diversified Products Group Segments. Operating income was $47.5 million in the second quarter of 2019 and the Company achieved a consolidated operating margin of 7.6 percent during the second quarter of 2019, which represents an improvement of 10 basis points from the second quarter of 2018, highlighting the success of both short and long-term initiatives targeting margin expansion.
“I am very pleased with our operating performance during the second quarter.  We delivered revenue of $626 million which is an all-time record for Wabash National and we generated our strongest operating margins in two years, driven by the Wabash Management System," explained Brent Yeagy, president and chief executive officer. "The strength of our free cash generation allowed us the flexibility not only to pay our regular quarterly dividend and make progress on debt-reduction, but also to repurchase shares during the quarter.”
Net income for the second quarter 2019 was $31.0 million, or 56 cents per diluted share, which compares to 54 cents  in the second quarter of 2018 or 49 cents on a Non-GAAP Adjusted basis. Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the second quarter 2019 was $61.0 million, or 9.7 percent of net sales.
Mr. Yeagy continued, “We are pleased to raise the midpoint of our full-year EPS outlook by 5 cents to $1.65 based on our strong second quarter performance.  The midpoint of our outlook for the second half of the year remains unchanged as our stable backlogs give us visibility to strong revenue.”
Commercial Trailer Products’ net sales for the second quarter was $401 million, a decrease of $1.6 million, or 0.4 percent as compared to the prior year quarter. Gross profit margin for the second quarter decreased 10 basis points as compared to the prior year period primarily due to product and customer mix.  Operating income decreased $0.9 million, or 2.1 percent, from the second quarter last year to $39.9 million, or 10.0 percent of net sales.
Diversified Products’ net sales for the second quarter were $97 million, an increase of $2.9 million, or 3.1 percent, as compared to the prior year, due primarily to increased demand for liquid tank trailers. Gross profit and profit margin as compared to the prior year period increased $3.4 million and 300 basis points, respectively, as the segment benefited from product mix and cost recovery among other internal initiatives driven by the Wabash Management System. Operating income in the second quarter of 2019 was $8.9 million, or 9.2 percent of net sales, representing an increase of $4.5 million as compared to the prior year period.
Final Mile Products’ net sales for the second quarter totaled $135 million, an increase of $13.6 million, or 11.2 percent, as compared to the prior year, due to strong market and customer demand. Gross profit margin for the second quarter decreased 150 basis points as compared to the prior year period primarily due to product mix and higher employee-related costs. Operating income was $9.2 million, or 6.8 percent of net sales, compared to $10.3 million, or 8.5 percent of net sales in the prior year period.