(Bloomberg) -- Wabash National Corp., a producer of semi-trailers and truck bodies, plummeted the most since 2010 after saying higher raw-material and labor costs will put third-quarter earnings well below analysts' estimates.
U.S. tariffs on aluminum and steel are driving up the price for many U.S. manufacturers, and Wabash cited “labor instability” that resulted in “higher levels of overtime and lower productivity.” A tight freight market has also made it hard for the company's customers to find trucks to pick up Wabash products.
Shares tumbled 22 percent to $13.04 at 11:46 a.m. in New York, after dropping as much as 26 percent, the biggest intraday decline since May 2010. The stock had dropped 23 percent this year before Friday's trading.
Adjusted earning per share for the third quarter are expected to be 27 cents to 30 cents, Wabash said in a statement. Analysts had predicted 52 cents, according to the average of estimates compiled by Bloomberg. Sales are expected to be as much as $555 million, Wabash said, lower than analysts' expectations of $597 million. Wabash said it continues to see “strong overall market demand for our products.”
To contact the reporter on this story: Thomas Black in Dallas at tblack@bloomberg.net
To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan Warren, Tony Robinson
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