Wabash National Corp will be eliminating about 500 jobs, including both hourly and salary positions, as part of a cost reduction program to meet the national economic slowdown. The company also announced that it will not meet analysts’ earnings estimates for first-quarter 2001, which it believes to be $0.03 to $0.10 per share.
As previously announced by Wabash, its first-quarter results will include costs associated with its restructuring activities. These include the exit from manufacturing products for export outside the North American market, international leasing and financing activities, and to a lesser degree, consolidation of certain domestic operations. As a result of ongoing costs and continued weak freight demand affecting purchasing activities of the trucking industry, Wabash expects to report a first-quarter loss substantially below analysts’ expectations. Cost reductions from the restructuring activities and job eliminations are expected to impact the company’s results positively during the second quarter.