Wabash National Corporation (NYSE:WNC) Q1 2023 Earnings Call Transcript

Mike Pettit: Yes. So generally speaking, we had – we talked about the production and it was a lot and when you have a quarter like we had, it was a lot of factors that contributed to it. We did see 10% to 12% production improvement in our dry van trailers. I alluded to earlier, we had high-teens output improvement in truck bodies a little better supply shortage. So that all really led to the conversion cost increase. And we did see some normalization of the price with the material cost. And into next – into the second half of the year that’s one of the reasons we’re keeping a keen eye on what everything’s – how it’s going to the material cost is going to settle. Some of our input costs, they are coming off of a bit of a high in 2022.

We don’t think it’ll have a huge impact to margins, but it could have an impact to ASPs as material costs come off their highs. So that’s one of the reasons we’ve stayed somewhat pragmatic and conservative on our second half commentary to see what that looks like. But generally speaking, we wouldn’t expect to see significant margin impact from input cost that was the whole intent of our variable pricing construct that we’ve launched.

Felix Boeschen: Got it. I appreciate it. Thanks for the time.

Mike Pettit: Thank you.

Operator: I would now like to turn the call over to Ryan Reed for closing remarks.

Ryan Reed: Thanks, everyone for joining the call today. We appreciate the participation. Look forward to following up.

Operator: Thank you, ladies and gentlemen. This does conclude today’s call. Thank you for your participation. You may now disconnect.