Wabash National Corporation (NYSE:WNC), has announced two changes to the way it retails its trailers.
The first is an internal realignment, as the company makes its retail segment part of the Commercial Trailer Products and Diversified Products. The second is an agreement with TEC Equipment of Portland, Oregon, where Wabash had operated a company-owned retail store.
Wabash National Trailer Centers in Ohio, Pennsylvania, Florida, Colorado and Texas will become part of the Commercial Trailer Products segment, while the Brenner Tank Services locations in Wisconsin, Illinois, Arkansas, Kentucky, Louisiana and Texas will join the Diversified Products segment.
Dick Giromini, president and chief executive officer, explained, “We have made great strides in our ongoing efforts to transform Wabash National into a diversified industrial manufacturer to reduce cyclicality, improve profitability and drive higher growth. The decision to realign and consolidate our retail locations and transition a company-owned store to an independent dealer will further these efforts and allow us to expand our network of independent dealers.
Wabash produces its line of tank trailers as part of its Diversified Products group. Retail-related functions will now become part of this group.
“This move will enable our tank trailer business to provide full service and aftermarket support to its Beall®, Brenner®, Bulk and Walker customers,” says Mark Weber, group president of Diversified Products. “The tank parts and service business model complements our existing businesses as well as delivers attractive margins in a capital-efficient manner.”
In addition to realigning the retail segment, Wabash National has finalized an agreement with Portland-based TEC Equipment to provide sales, parts and service for Wabash National, Transcraft and Benson brand trailers in Arizona, New Mexico and portions of Idaho. During July 2016, the Wabash National Trailer Center in Phoenix, Arizona, will be transitioned to an independent dealer facility operated by TEC Equipment.
“This agreement was a natural follow-up to the successful transition of three former branch locations in Oregon and California to TEC Equipment in 2014,” says Brent Yeagy, group president of Commercial Trailer Products. “TEC Equipment has proven to be a best-in-class dealer that provides excellent service to our mutual customers and a business partner that represents the Wabash brand very well.”
As a result of the realignment, the former retail segment will no longer be reported as a separate business segment in Wabash National’s financial statements. Wabash National will begin reporting the realigned segments effective with its second quarter 2016 Form 10-Q filed with the Securities Exchange Commission.