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Navistar reports 2019 first quarter net income of $11 million; OEM lost $73 million in first quarter 2018

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LISLE, Ill. — Navistar International Corp. Friday revealed first quarter 2019 net income of $11 million, or $0.11 per diluted share, compared to a first quarter 2018 net loss of $73 million, or $0.74 per diluted share.

Navistar’s fiscal year begins October 1.

Revenues in the quarter were $2.4 billion, a 28 percent increase compared to $1.9 billion in the first quarter last year. The revenue increase was driven by a 50 percent increase in the company’s core volumes, which represent its sales of Class 6-8 trucks and buses in the United States and Canada.

First quarter 2019 EBITDA was $96 million, compared to first quarter 2018 EBITDA of $55 million. Adjusted EBITDA was $173 million versus $104 million in first quarter 2018. Results were impacted by certain one-time items, including a non-cash charge related to a Canadian pension annuity transaction of $142 million (or $104 million after-tax), and aggregate gains of $59 million from the sales of 70 percent of the Navistar Defense business and the company’s ownership interest in the JND joint venture.

Navistar finished the first quarter 2019 with $1.24 billion in consolidated cash, cash equivalents and marketable securities and $1.19 billion in manufacturing cash, cash equivalents and marketable securities.

“We had our best first quarter since 2010 as customer acceptance of our new products translated to extended gains in our core market share,” said Troy A. Clarke, chairman, president and CEO. “In addition to our ongoing growth in Class 8, our medium-duty market share grew by six points during the quarter, the largest year-over-year medium share gain in the industry.”

The company’s first quarter featured a number of positive marketplace developments, Navistar officials said.

Continuing its cadence of new product launches, Navistar unveiled its new International CV Series line of Class 4/5 vehicles, the only Class 4/5 truck that is designed, distributed and supported by a manufacturer specializing in commercial vehicles, the company said in a news release. Year-over-year growth in the company’s Core market share was up 1.8 points, led by a six-point share increase in Class 6/7, which was attributable to strong sales of the MV Series of medium-duty trucks. Additionally, the company’s International HX Series and International HV Series vehicles built improved vocational order share resulting in a strong backlog. The company reported backlog growth of more than 8,000 units in its core markets, up 18 percent since the end of fourth quarter 2018.

The company reiterated its 2019 industry guidance, including a forecast that retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be 395,000 to 425,000 units, with Class 8 retail deliveries of 265,000 to 295,000 units.

“As our ongoing improvements demonstrate, the company has strong opportunities to benefit from capturing additional market share, growing parts revenue, improving margins and further de-risking the balance sheet,” Clarke said. “Given the progress made in the first quarter, and our positive outlook for the remainder of the year, we are confident that 2019 will move Navistar forward on the path to generate superior shareholder returns compared to the industry.”

 

 

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NACV to feature 3 Solutions Theaters to focusing on trucking industry needs

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Leading truck and trailer manufacturers and commercial vehicle parts and components suppliers will demonstrate their latest product offerings during the NACV Show 2019, taking place at the Georgia World Congress Center in Atlanta from October 28-31. The NACV Show 2021 will be held in Atlanta from September 27-30, 2021. (Courtesy: NACV)

ATLANTA — The North American Commercial Vehicle Show (NACV Show), the biennial B2B trucking industry event focusing on the needs of fleet owners, managers and decision makers, said Thursday that it will feature three new Solutions Theaters to showcase topical industry discussions on the show floor.

The show organizers have partnered with leading industry publications to secure thought leaders and industry visionaries who will discuss a range of topics.

All Solutions Theaters’ sessions are free for NACV Show 2019 registered attendees.

“We expect the discussions that take place in our three Solutions Theaters will inform and empower all industry professionals who attend NACV Show 2019,” said Carmen Diaz, show manager for the NACV Show. “We are excited to present top industry leaders and visionaries during our on-floor education sessions to discuss both the challenges and opportunities confronting today’s fleet professionals.”

Following is an overview of some of the NACV Show 2019 on-floor education sessions:

Two panel discussions will take place in the Solutions Theater located in Hall A.

The first panel is entitled “Finding the Data Driven Solutions That Work for You,” which will focus on how fleet owners can identify leading service challenges. Panel participants will provide insight into collecting and organizing the right data to help overcome these challenges. The second panel is entitled “How to Use Data to Improve Service Operations” that will highlight how to best utilize data — from fault code data to VMRS records — to reduce fleet downtime to improve operations.

Also, in the Hall A Solutions Theater, three educational topics will be discussed, including a Class 8 panel discussion, a medium duty panel discussion and “Last Mile – Autonomous Delivery Startups” discussion.

Two panel discussions will take place in the Solutions Theaters located in Hall B, including “Vetting Technology” and “Best use of Smart Technology.” Three educational sessions will also take place in the Solutions Theaters located in Hall B, including “Transitioning from AOBRDs to ELDs,” “Driver Retention” and “Rapid Pace of Technology Trucking.”

The show organizers will announce additional conference and educational programming topics prior to the event, which takes place at the Georgia World Congress Center in Atlanta from October 28-31.

The North American Commercial Vehicle Show is a B2B exhibition focused on fleet decision makers and key influencers in the commercial vehicle industry.

 

 

 

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FTR March Shippers Conditions Index shows positive momentum

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An FTR official said an area to watch is diesel prices, which could move up in the fourth quarter. (The Trucker file photo)

BLOOMINGTON, Ind. — FTR’s March Shippers Conditions Index (SCI) rose two full points from February to a reading of 2.8 reflecting a continued easing of truckload and intermodal rates.  The outlook is for improved shipper conditions through 2019.

However, some key areas to watch are fuel price increases and capacity utilization in trucking which can result in added costs for shippers, according to Todd Tranausky, vice president of rail and intermodal at FTR.

“Shippers are benefiting from relatively stable fuel prices and weaker trucking capacity utilization than they experienced in 2018. But both of those metrics are expected to tighten up as the year progresses,” Tranausky said. “Diesel prices could move up in the fourth quarter ahead of the IMO 2020 fuel mandate, which could pressure fuel surcharges higher late in 2019.”

The May issue of FTR’s Shippers Update, published May 8, 2019, details the factors affecting the March Shippers Conditions Index. Also included is data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.

The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions include freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem…and readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment. Double digit readings (both up or down) are warning signs for significant operating changes.

 

 

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Heartland Express opens new, remodeled terminals in Colorado, California

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The Heartland Express Driver Appreciation Team performed at the ribbon cutting for the new terminal in Frederick, Colorado. (Courtesy: HEARTLAND EXPRESS)

NORTH LIBERTY, Iowa — Heartland Express has opened a new terminal at Frederick, Colorado, and a remodeled terminal in Rancho Cucamonga, California.

Just north of the Denver metro area, the Colorado facility offers a service shop with a truck wash, fully covered 24-hour fuel island and service lanes.

The terminal features a driver lounge with 24-hour access and amenities that include restrooms with private walk-in showers and laundry room with full size washer/dryer units. Other comforts include sofas and recliner chairs, table seating, ice machine, coffee, and a large screen TV for entertainment.

An RFID software system was installed for driver security and over five acres of parking with industrial Wi-Fi network available site wide.

The opening of the Frederick terminal occurred shortly after the grand re-opening of the newly remodeled Southern California facility in Rancho Cucamonga.

This 20-acre facility includes all of the amenities available in Frederick and utilizes solar power. Rancho Cucamonga is also one of 12 company locations that hosts driver orientation and soon we look forward to driver orientation at the Frederick facility.

“I’m extremely proud of these new terminals and what we can offer to our drivers. We’ve invested significant time, capital, and environmentally conscious resources into these provisions and look forward to seeing growth of our market position in both locations respectively,” said Heartland Express CEO, Mike Gerdin. “These grand openings are just the start of great new things to come from Heartland. Including the completion of these two terminal projects, we are spending an estimated $40-50 million on terminal related capital projects during 2019.  These terminal projects are centered around upgrades, remodels, expansions and terminal amenities for the comfort and support of our drivers, including additions of truck wash facilities at certain locations. Our desire is to offer state of the art amenities to our drivers while they are away from home.

The Frederick terminal is located at 9040 Bruin Blvd. The Rancho Cucamonga terminal is located at8566 Pecan Ave.

Heartland Express is an irregular route truckload carrier based in North Liberty, Iowa, serving customers with shipping lanes throughout the United States. Heartland focuses on medium to short haul regional freight, offering shippers industry leading on-time service so they can achieve their strategic goals for their customers.

For more information, visit www.heartlandexpress.com.

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