Navistar in partnership on $400-million Taiwan military contract

Navistar International Corporation announced that its operating company, International Truck and Engine Corporation, in partnership with SanYang Industry Company LTD of Taiwan, won a five-year contract worth approximately $400 million for the delivery of up to 5,000 trucks to the Taiwan Ministry of National Defense.

The contract was awarded April 13 and is set to be signed within the next few weeks. Delivery of completed vehicles will begin in May 2006.

SanYang is the primary contractor and International is a subcontractor. Parts and components for the trucks will be built and prepared into kits in the United States and assembled in Taiwan to meet local content requirements.

The International 7400 4x4 vehicles with I-6 engines will be used in troop carrier and general cargo applications by Taiwan's armed forces. The new International vehicles will replace the M35 truck built by AM General for the past 30 years.

Navistar also announced that it expects per diluted common share in its second fiscal quarter ending April 30, 2004 to be in the area of $0.65 to $0.70 per diluted common share compared with $0.67 per diluted common share in the second quarter a year ago.

Daniel C. Ustian, Navistar chairman, president and chief executive officer, reiterated that based on the company's current truck industry volume forecast of 389,500 units, earnings in 2005 should be in the range of at least $4.60 to $5.00 per diluted common share.

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