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Analyst Opinion on Wabash National and Oshkosh - Tough Times for Truck Makers

LONDON--(Marketwire - Nov 9, 2012) - Weak orders and sales in the U.S. and Europe continue to portend a bleak near-term for the trucking industry. The challenge now for the industry, which includes companies like Wabash National and Oshkosh, appears to be less about generating demand and growing sales and more about cutting costs and contending with current conditions.

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Several companies have opted for modest steps and are reducing expenses and cutting costs wherever possible. Some are adopting stronger measures by dialing back production to better handle difficult economic conditions and soft demand. Others have taken even more drastic actions and are shutting down some manufacturing facilities completely and slashing large amounts of jobs.

There is some optimism for the industry though, as orders in Canada and the U.S. are expected to pick up moderately. Additionally, truck manufacturers ramping up operations in emerging markets may be better positioned to handle this challenging landscape. Specifically, efforts to grow in Brazil, India and China are beginning to yield some positive returns.

Others, like Wabash National and Oshkosh, have seen positive quarterly results. Whilst Oshkosh saw a surge in profits, sales took a hit due to weak defense spending. Wabash, on the other hand, saw stellar results as it reported its 12th consecutive quarter of year-over-year improvement in Income from Operations. See what our analysts have to say on Oshkosh and Wabash National. Follow the Links below


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