Navistar boosts revenue projections up to $9.75B after strong sales


Navistar raised its revenue projections for this year, in part due to strong results in the company’s truck segment, the manufacturer said Thursday.

It expects 2018 revenues to be between $9.25 billion and $9.75 billion, compared to previous estimates of $9 billion to $9.5 billion. Company leaders pointed to higher sales in its core markets and the military, as well as production of GM-branded vehicles manufactured at Springfield’s Navistar plant.

Navistar is one of Clark County’s largest employers with more than 1,800 people employed at its Springfield plant.

“We expect market conditions to remain robust and we are determined to take advantage of opportunities to grow share while delivering strong margin performance,” President and CEO Troy Clarke said. “Given the progress made in Q1, and our positive outlook for the remainder of the year, we are confident that 2018 will be the breakout year for Navistar.”

RELATED: Navistar, Volkswagen team up to build electric truck

The truckmaker reported a net loss of $73 million for the first quarter this year, including $46 million in charges as a result of debt refinancing in November last year. Navistar reported a net loss of $62 million for the same quarter last year.

Along with boosting revenue projections, the company also increased its expectations for truck and bus deliveries to 360,000 to 390,000 units, up from projections of 345,000 to 375,000 in the last quarter.

Navistar’s truck segment loss was $7 million for the first quarter of 2018, compared to a loss of $69 million a year ago, according to its earnings report released Thursday. The improvements were partially offset by a decline in Navistar’s Mexico and export truck sales.

MORE: Navistar, local leaders push others to buy trucks made in Springfield

“We are off to a strong start in 2018, thanks to our ability to grow Navistar’s position in a strengthening market,” Clarke said.

Company officials also noted the unveiling of the truck maker’s new Class 6/7 International MV Series Wednesday at the Indianapolis truck show. That truck also will be made in Springfield on an existing line, and it will complete a refresh to the truckmaker’s entire line of products.

Separately, Chevrolet unveiled Wednesday new medium-duty Silverado trucks at the same show that will be built by workers at Navistar’s Springfield plant. Officials from the UAW Local 402 couldn’t be reached for comment Thursday. But on Wednesday, Jason Barlow, president of the UAW Local 402, said the new Silverados could go into production as early as October.

DETAILS: Navistar stock jumps nearly 400 percent, VW deal cited as key

Barlow told the Springfield News-Sun the additional work will be good news for Springfield and union officials and management have worked well together to improve the company’s competitiveness in the market.

Steven Volkmann, an analyst who covers Navistar for Jefferies, a global investment banking firm, couldn’t be reached for comment Thursday.

Navistar officials also said the truck maker’s alliance with Volkswagen is speeding the development of future technologies, including electric powertrains, which are already in development for buses and medium-duty trucks. Last year, Navistar and Volkswagen finalized an agreement that calls for the German firm to buy a roughly 17-percent equity stake in Navistar and invest about $256 million.



Reader Comments ...


Next Up in Business

The stage is set: UD ready for first gubernatorial debate tonight
The stage is set: UD ready for first gubernatorial debate tonight

After years of discussions and weeks of work, now it comes down to just a few hours: The University of Dayton will host the first 2018 Ohio gubernatorial debate tonight at Daniel J. Curran Place. Eric Spina, UD president, sounded a confident note this morning, saying the university community is ready. “For many years, we have been letting folks...
Health care a top ballot box concern for older Ohioans
Health care a top ballot box concern for older Ohioans

The majority of Ohioans over the age of 50 say concerns about health care will affect their vote this fall. About 81 percent said health care is a “very important” issue when it comes to their vote for Congressional candidates this fall. About 80 percent said Social Security is a very important issue and 76 percent said Medicare is, according...
760-mph hyperloop from Ohio to Chicago moves closer with new regulations
760-mph hyperloop from Ohio to Chicago moves closer with new regulations

An exceptionally fast transportation system may be a step closer to Ohio. Hyperloop Transportation Technologies (HyperloopTT) and German insurance company Munich Re said Monday that a set of core safety requirements and certification guidelines for the fledgling mode of transportation have been created. The hyperloop is expected to transport pods of...
A ‘clean’ meatloaf

Dear Heloise: I have a pretty good hint: When you MAKE MEATLOAF, the cleanup is a pain in the you-know-where. I spray the pan with any kind of cooking spray, then line it with foil. When you take the meatloaf out of the pan, there is very little cleanup. — Linda W., Bakersfield, Calif. ‘lettuce’ explain Dear Heloise: I buy iceberg...
Purina Nutrition moves distribution operation to Dayton site
Purina Nutrition moves distribution operation to Dayton site

Land O’Lakes Inc./Purina Animal Nutrition is in the early stages of anchoring a distribution operation near Dayton International Airport, occupying the second building built off Concorde Drive by NorthPoint Development. “We are a distribution center,” Teresa Devall, a warehouse manager for Land O’Lakes/Purina Feed, said Monday...
More Stories