Truck and diesel engine maker Navistar International has revised full-year guidance up after posting record net income for the third quarter of US$272m, or $3.68 per share.
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Projected net income for the full year is now in to a range of $467m to $548m and earnings per share of $6.35 to $7.45.
“Increased military revenue as well as strong demand for our fuel-efficient heavy trucks drove our overall results in the third quarter. Although we continue to face a weak truck market in North America and anticipate our results to moderate in the fourth quarter, we are revising our full-year guidance upward,” said Navistar chairman, president and CEO Daniel Ustian.
For the first nine months of fiscal 2008, the company reported net income of $434m, or $5.92 per share on net sales and revenue of $10.9bn, compared to a net loss of $17m, or ($0.24) per share on net sales and revenue of $9.1bn reported in the first nine months of fiscal 2007.
Manufacturing segment profit for the nine month period was up 159% to $837m from $323m a year ago.
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By GlobalData“Our strategy to grow in non-traditional, expansionary markets and reduce cost continues to pay off,” said Ustian. “We anticipate even greater returns as we develop our strategic alliances to expand our global footprint and leverage a broader supply base.”
Third quarter truck shipments of expansionary and US military units accounted for 40% of all Navistar worldwide truck shipments, continuing to offset the impact of the soft US and Canadian truck market.
Navistar’s share of order receipts in the traditional US and Canada industry climbed for the third straight quarter, reaching 38% of total industry orders.
Class 8 market share excluding US military exceeded 21% for the third quarter on the strength of increased demand for the industry-leading fuel-efficient International ProStar.
Quarterly worldwide engine shipments decreased 27% to 79,300 due to reduced orders for diesel engines in Ford heavy-duty pickups.
Engine shipments to other manufacturers and Navistar’s own truck group increased 26%.
Intercompany engine shipments will increase as production of the new MaxxForce 11 and 13 Big-Bore engines, which started delivery in the third quarter, continue to ramp up.
Engine shipments to other manufacturers are expected to grow due to the strength of the company’s South American engine subsidiary that recently signed a long-term agreement to supply GM 420,000 units.
