Navistar Posts Best First-Quarter Results Since 2010

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Transport Topics  /  March 8, 2019

Navistar International Corp. reported higher net income and revenue as the parent company of International Truck posted its best fiscal-year first quarter since 2010.

Navistar for the period ended Jan. 31 reported net income of $11 million, or 11 cents per diluted share, compared with a net loss of $73 million, or 74 cents, a year earlier.

Revenue in the quarter was $2.4 billion, a 28% increase compared with $1.9 billion in the 2018 period.

“Customer acceptance of our new products translated to extended gains in our core market share,” Navistar Chairman and CEO Troy Clarke said in a release. “In addition to our ongoing growth in Class 8, our medium-duty market share grew by 6 points during the quarter, the largest year-over-year medium share gain in the industry.”

In the quarter, Navistar unveiled its International CV Series line of Classes 4-5 vehicles, which it markets as the only Classes 4-5 truck that is designed, distributed and supported by a manufacturer specializing in commercial vehicles.

Also in the quarter, it completed group annuity transactions with two Canadian insurers that transferred $268 million in pension obligations of defined benefit pension plans in Canada, reducing the company’s nonoperating financial risk and administrative costs, according to the Lisle, Ill.-based manufacturer.

The company’s 2019 guidance includes: industry retail deliveries of Classes 6-8 trucks and buses in the United States and Canada of 395,000 to 425,000 units, with Class 8 retail deliveries of 265,000 to 295,000 units. Revenue in 2019 is expected to be between $10.75 billion and $11.25 billion.

“As our ongoing improvements demonstrate,” Clarke said, “the company has strong opportunities to benefit from capturing additional market share, growing parts revenue, improving margins and further de-risking the balance sheet."