LISLE, Ill., Sept. 6, 2018 /PRNewswire/ — Navistar International Corporation (NYSE: NAV) today announced third quarter 2018 net income of $170 million, or $1.71 per diluted share, compared to third quarter 2017 net income of $37 million, or $0.38 per diluted share.
Third quarter 2018 EBITDA was $284 million, versus EBITDA of $160 million in the same period one year earlier. The third quarter of 2018 included $66 million in adjustments, including a $71 million gain from a one-time settlement, $4 million of pre-existing warranty accrual reversals, and $9 million in charges for asset impairments and restructuring costs. Excluding those items, adjusted EBITDA was $218 million in the third quarter of 2018, compared to $194 million in the same period one year ago. While adjusted EBITDA for the third quarter was affected by supplier constraints that delayed deliveries and impacted volumes, the company aggressively managed these headwinds. These vehicles are making their way through the delivery process and will be reflected in fourth quarter sales.
Revenues in the quarter were $2.6 billion, up 18 percent from the same period one year ago, primarily due to a 26 percent increase in Core market (Class 6-8 trucks and buses in the United States and Canada) volumes.
“We had a strong quarter that took full advantage of healthy industry volumes and the market’s enthusiasm for our new products,” said Troy A. Clarke, Navistar chairman, president and chief executive officer.
Navistar ended third quarter 2018 with $1.12 billion in consolidated cash, cash equivalents and marketable securities. Manufacturing cash, cash equivalents and marketable securities were $1.08 billion at the end of the quarter.
The company had a number of product highlights during its third quarter. Year-over-year growth in Class 8 heavy retail market share, up 2.7 points, was attributable to strong sales of the LT Series on-highway truck and the 12.4-liter A26 engine. International A26 engine market share penetration more than doubled from the year ago quarter, and the engine is now also available in the company’s severe service vehicles, the HV Series and HX Series. Additionally, the new MV Series contributed to 66 percent growth in medium-duty orders.
In the school bus segment, the company was the first in the industry to make electronic stability control and collision mitigation technology standard on its IC Bus® CE Series and RE Series school buses. With these new standard systems in place, IC Bus has the most robust collision mitigation offering in the industry.
Additionally, the company announced that all new on-highway International® trucks will be equipped with an OnCommand® Connection telematics device with two free years of service included. The OnCommand Connection device integrates a cellular-enabled hardware platform with a range of technology solutions, including telematics and the OnCommand Connection Advanced Remote Diagnostics platform.
2018 INDUSTRY AND FINANCIAL GUIDANCE
Based on stronger industry conditions, the company raised its 2018 full-year guidance:
- Industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be 390,000 to 410,000 units, with Class 8 retail deliveries of 260,000 to 280,000 units.
- Navistar revenues are expected to be between $10.1 billion and $10.4 billion.
- The company's adjusted EBITDA is expected to be between $775 million and $825 million.
- Year-end manufacturing cash is expected to be above $1.25 billion.
Additionally, the company forecasts the industry’s 2019 retail deliveries of Class 6-8 trucks and buses in the United States and Canada to be in the range of 385,000 to 415,000 units, with Class 8 retail deliveries between 255,000 and 285,000 units.
“Our team has delivered substantial accomplishments this year, including growing Class 8 share, building our backlog and effectively managing costs,” Clarke said. “Our progress positions us well for a very strong fourth quarter and another good year in 2019.”
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