Navistar sees increased revenues of 20 percent

According to Daniel C. Ustian, Navistar chairman, president and CEO, major factors in the company’s 2008 performance were increased sales to the military, increased market share in the Class 8 segment, led by the International ProStar, growth in South American engine sales and expansion into global markets.

The Trucker News Services

12/31/2008

WARRENVILLE, Ill. — Navistar International Corp. announced revenues increased 20 percent to record level of $14.7 billion — nearly doubling revenues from five years ago.

Demonstrated solid profitability in weak truck market at $7.23 per diluted share, and manufacturing segment profit of $1.1 billion, excluding asset impairment charges

However, Navistar reported a loss for the current fourth quarter of $343 million, or $4.81 per diluted share, compared with a loss of $103 million, or $1.46 per diluted share in the fourth quarter a year ago.

Navistar reported near record earnings excluding asset impairment charges and record revenues for the fiscal year that ended October 31, 2008.

Revenues increased 20 percent to $14.7 billion from $12.3 billion a year ago primarily driven by increases in sales to the U.S. military of $3.5 billion, a company news release stated. Despite a continuing weak truck industry, Navistar reported a profit for 2008 compared with a loss in fiscal 2007, demonstrating that its overall strategy is working.

“Our strategy of building great products, achieving a more competitive cost structure and finding profitable growth opportunities has enabled us to fundamentally change our profitability even in these turbulent economic times,” said Ustian.

“We have achieved this substantial progress by diversifying and expanding into new business opportunities with little capital investment as well as leveraging our core strengths and the strengths of companies that have become our partners,” he said.

For the full fiscal year ended Oct. 31, 2008, the company demonstrated solid progress in its business strategy by delivering net income of $134 million, or $1.82 per diluted share, and manufacturing segment profit of $719 million, compared with a loss of $120 million, or $1.70 per diluted share for fiscal 2007, and manufacturing segment profit of $426 million in fiscal 2007.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.