Navistar posts solid fiscal year results on strong sales, growing market share
For the second straight, commercial trucks and diesel engines manufacturer Navistar finished the fiscal year with a profit. The company reported net income of US$340 million for 2018, up from US$30 million in 2017.
The company’s 2018 revenue totaled US$10.25 billion, up from US$8.6 billion in 2017, attributable to annual revenue growth in all four operating segments. Strong sales in its core market, Class 6-8 trucks, was a prime driver in its revenue increase, the company said, adding that Class 8 retail market share grew to 13.5% in fiscal year 2018 versus 11.8% in fiscal year 2017.
Fourth quarter 2018 adjusted EBITDA increased 20% to US$322 million, versus US$268 million one year ago. Fiscal year 2018 adjusted EBITDA increased 42% to US$826 million, versus US$582 million in 2017. Full-year adjusted EBITDA margins increased to 8.1%, up from 6.8% for 2017. This marks the sixth consecutive year of annual growth in adjusted EBITDA on both a dollar and percentage basis for the Illinois-based company.
Revenues in the quarter increased 28%, to US$3.3 billion, compared to fourth quarter 2017. The revenue increase was largely driven by a 45% increase in the company’s Core volumes, which represent its sales of Class 6-8 trucks and buses in the United States and Canada.
Navistar’s president and Chief Executive Troy Clarke called it “a breakout year for Navistar.” The company gained market share in the Class 8 market, he said, adding the company “expects to 2019 to be another strong year for Navistar and the industry.”
The company forecasts industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada to be 395,000 to 425,000 units, with Class 8 retail deliveries of 265,000 to 295,000 units.
Revenues are expected to be between US$10.75 billion and US$11.25 billion with adjusted EBITDA between US$850 million and US$900 million.
Navistar largest plant worldwide is located in Escobedo, Nuevo Leon, northern Mexico. The 100-hectare production site exports Class 8 trucks to around 30 countries, including markets as far as Chile, Saudi Arabia and Australia.