Navistar reports third quarter 2018 results

4 MinutesBy NZ Trucking magazineSeptember 7, 2018

Navistar International Corporation has announced third quarter 2018 net income of US$170 million, or US$1.71 per diluted share, compared with third quarter 2017 net income of US$37 million, or US$0.38 per diluted share.

Third quarter 2018 EBITDA was $284 million, versus EBITDA of $160 million in the same period one year earlier. The third quarter of 2018 included $66 million in adjustments, including a $71 million gain from a one-time settlement, $4 million of pre-existing warranty accrual reversals, and $9 million in charges for asset impairments and restructuring costs. Adjusted EBITDA was $218 million in the third quarter of 2018, compared with $194 million in the same period a year ago. Adjusted EBITDA for the third quarter was affected by supplier constraints that delayed deliveries and affected volumes, but these vehicles were making their way through the delivery process and will be reflected in fourth quarter sales.

Revenues in the quarter were US$2.6 billion, up 18 percent from the same period one year ago, primarily due to a 26 percent increase in Core market (Class 6-8 trucks and buses in the United States and Canada) volumes.

“We had a strong quarter that took full advantage of healthy industry volumes and the market‘s enthusiasm for our new products,” said Troy A. Clarke, Navistar chairman, president and chief executive officer.

Navistar ended third quarter 2018 with US$1.12 billion in consolidated cash, cash equivalents and marketable securities. Manufacturing cash, cash equivalents and marketable securities were US$1.08 billion at the end of the quarter.

The company had a number of product highlights during its third quarter. Year-over-year growth in Class 8 heavy retail market share, up 2.7 points, was attributable to strong sales of the LT Series on-highway truck and the 12.4-litre A26 engine. International A26 engine market share penetration more than doubled from the year-ago quarter. Additionally, the new MV Series contributed to 66 percent growth in medium-duty orders.

Additionally, the company announced that all new on-highway International trucks would be equipped with an OnCommand Connection telematics device with two free years of service included. The OnCommand Connection device integrates a cellular-enabled hardware platform with a range of technology solutions, including telematics and the OnCommand Connection Advanced Remote Diagnostics platform.

The company forecasts the industry‘s 2019 retail deliveries of Class 6-8 trucks and buses in the United States and Canada to be in the range of 385,000 to 415,000 units, with Class 8 retail deliveries between 255,000 and 285,000 units.

“Our team has delivered substantial accomplishments this year, including growing Class 8 share, building our backlog and effectively managing costs,” Clarke said. “Our progress positions us well for a very strong fourth quarter and another good year in 2019.”