Navistar International Corporation today announced a third quarter 2017 net income of $37 million. Revenues in the quarter were $2.2 billion, up 6% from the same period one year ago, primarily due to an increase in truck segment volumes.
Truck Segment — Truck segment net sales increased 10% to $1.5 billion compared to third quarter 2016, due to higher volumes in Class 6-8 trucks and buses in the United States and Canada, an increase in Mexico truck volumes, and the production ramp up of GM-branded units manufactured at Navistar’s Springfield, Ohio plant. Truck segment results improved by $61 million year-over-year.
“We returned to profitability this quarter thanks to strong operational performance across the board, highlighted by a 15-percent increase in chargeouts and solid market share gains amid flat industry conditions, and strengthening margins,” said Troy A. Clarke, Navistar chairman, president and chief executive officer. “We also moved ahead with new products and solutions that position us well for ongoing growth, while continuing to restructure our business to improve our future competitiveness.”
Parts Segment — Parts segment net sales declined $11 million compared to third quarter 2016 due to lower Blue Diamond Parts (BDP) sales and lower North America volumes, partially offset by higher Fleetrite all-makes brand and ReNEWed remanufactured parts sales in the U.S. and Canada. The Parts segment recorded a profit of $157 million, up 3% compared to third quarter 2016, primarily due to income related to the sale of a business line and lower intercompany access fees, which were partially offset by margin declines in BDP and our U.S. market.
Global Operations Segment — Global Operations net sales were flat compared to the prior year, up $8 million, primarily due to lower manufacturing and SG&A costs, as a result of our prior year restructuring and cost reduction efforts, and income related to the sale of machinery and equipment.
Financial Services Segment — Financial Services net revenues increased by $2 million to $62 million compared to third quarter 2016, primarily due to higher interest rates in our Mexican portfolio.
The company reiterated its 2017 guidance:
- Retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be in the range of 305,000 units to 335,000 units for fiscal year 2017.
- Full-year 2017 revenues are expected to be similar to 2016.
- Full-year 2017 adjusted EBITDA is expected to be higher than 2016.
- Fiscal year end 2017 manufacturing cash is expected to be about $1 billion.