We will double in size, says Navistar’s Ustian

Navistar International expects to double in size over the next decade or so as it vows to become solidly profitable no matter what the overall industry is experiencing, Daniel C. Ustian, president and chief executive officer, told analysts this week. Newly-named chairman-elect Ustian said the goal of doubling in size is "bold and ambitious" and is tied to the company's plan to "create a new reality." He said: "We plan to become a $15-billion company by increasing market share with existing products, through the introduction of new products in our current markets, as well as by finding new business opportunities in similar markets. " He expects the company to reach that goal at the end of the next industry cycle, about eight- to 11-years from now. "Industry leading quality and disciplined cost management will be enablers for our growth and we expect to achieve our goal through product superiority and brand strength," Ustian said. According to Ustian, the company's goal is to be "profitable at all points of the next cycle, and every cycle after that." He cited two examples of the "new reality" -- the expansion opportunity into the military market and the company's competitive advantage with diesel engine expertise that will allow it to meet 2007 emission standards without the use of expensive catalytic converters. Navistar returned to profitability in the second half of fiscal 2003 after six quarters of losses. For its fiscal year ended October 31, 2003, Navistar recorded sales and revenues of $7.3 billion, up from $6.8 billion a year earlier and below the record $8.6 billion achieved in fiscal 1999. "We demonstrated in the second half of 2003 that we can be profitable at low industry volumes and as demand increases, we expect our earnings will accelerate," stated Ustian.

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