Expecting to achieve record revenues and solid profitability in 2008 despite the weak truck industry, Navistar International Corporation today reported increased market share in its traditional truck business and significant increases in expansionary shipments during its second quarter operational update. The company also set an annual shareholders' meeting date of September 5, 2008.
"Midway through 2008, a much weaker year for the industry than even 2007, we are truly realizing the benefits of our growth strategy," said Daniel C. Ustian, Navistar chairman, president and chief executive officer. "We have clearly buffered ourselves from U.S. and Canada industry cyclicality, as evidenced by revenues and profit set to exceed those of the first half of 2007 when industry volumes were 63 percent higher."
Navistar provided guidance on financial results for the first half of fiscal year 2008, including consolidated revenues of $6.7-$6.9 billion and manufacturing segment profit of $375-$425 million.
"With recent billion-dollar-plus orders in our bus and defense businesses and considerable order receipt increases in our core truck markets, we expect to achieve record revenue in 2008. And, even more importantly, deliver nearly $1 billion in manufacturing segment profit," said Ustian.
The company also detailed second quarter 2008 worldwide shipments of Class 6-7 medium trucks and Class 8 heavy trucks, school buses and expansion market vehicles of 27,200 -- a 41 percent increase over the first quarter. Navistar U.S. and Canada dealer stock inventories reached a five-year low, while both year-to-date market share and order receipt share increased an average of 4 percentage points across all vehicle lines versus the same period of 2007. Manufacturing cash balances were reported to be $625 million as of April 30, 2008.