Navistar posts strong third quarter results on record Class 8 truck orders
Navistar International Corporation reported strong third quarter results driven by a market share increase of 2.7% in the Class 8 truck segment, while overall orders setting an all-time record. Also, market share of its proprietary International A26 12.4-liter diesel engine more than doubled.
The Illinois-based commercial vehicles manufacturer posted net income of US$ 170 million compared to third quarter 2017 net income of US$ 37 million, according to its quarterly report for the period ending July 31.
During the conference call to review the quarterly results, Troy Clarke, Navistar chairman, president and CEO, highlighted that a GDP expansion of 4.1% in the second quarter, the strongest since 2014, July consumer confidence in its highest since 2000, and the purchase manager’s index on manufacturing the highest since 2004, all these conditions supported fleet utilization, higher freight rates, and improved carrier profits. “It’s just a great time to be in the truck business,” he said.
Just in July, Class 8 orders reached a record of over 52,000 units. These numbers have created industry backlogs into the second quarter of 2019, Clarke added.
Navistar is now predicting that Class 8 truck sales in the U.S. market will end 2018 between 260,000 and 280,000, and projects 2019 to be about the same, in the 255,000-285,000 range, up from 207,000 units in 2017.
Third quarter 2018 Earnings Before Interests, Taxes, Depreciations and Amortizations (EBITDA) was US$ 284 million, versus US$ 160 million in the same period one year earlier.
Revenues in the quarter were US$ 2.6 billion, up 18% from the same period one year ago, primarily due to a 26% increase in Core market (Class 6-8 trucks and buses in the United States and Canada) volumes.
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.