Navistar Q1 Revenues Up on Increase in Class 6-8 Truck, Bus Volume
MAR 8, 2018 - 8:20 am
Navistar International announced a Q1/18 net loss of $73 million compared to a Q1/17 net loss of $62 million. First quarter 2018 results included $46 million of charges as a result of the company’s debt refinancing in November 2017.
Revenues in the quarter were $1.9 billion, a 15% increase compared to $1.7 billion in the first quarter last year, driven by a 24% increase in the company’s core Class 6-8 trucks and buses in the U.S. and Canada volumes.
“We are off to a strong start in 2018 thanks to our ability to grow Navistar’s position in a strengthening market,” said Troy A. Clarke, chairman, president and CEO. “We grew our Class 8 market share and improved our margins, on the way to delivering our best first quarter on an adjusted EBITDA basis since 2011.”
Navistar’s first quarter core charge-outs were up 2,400 units year-over-year led by Class 8 Heavy, which was up 56% compared to first quarter last year. The company’s Class 8 market share was up 1.2 points versus the same period one year ago. Gross margin for the quarter was 19.6% of revenue, up 2 percentage points from first quarter 2017.
“Our improvement this year is due largely to the market’s positive reaction to our new products, including the LT Series on highway tractor and the 13-liter A26 engine,” Clarke said. “In fact, the strong interest in our A26 engine has us nearly doubling our share of trucks with 13-liter engines in the first quarter of 2018 compared to a year ago.”
Retail deliveries of Class 6-8 trucks and buses in the U.S. States and Canada are forecast to be in the range of 360,000 units to 390,000 units, with Class 8 retail deliveries of 235,000 to 265,000 units.
“We expect market conditions to remain robust and we are determined to take advantage of opportunities to grow share while delivering strong margin performance,” 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.”
The company’s alliance with Volkswagen Truck & Bus is accelerating Navistar’s development of future technologies, including electric powertrains, which are already in development for school buses and medium duty trucks. The company is currently testing its first prototype electric school bus, the chargE, which Navistar will be demonstrating for customers and government officials starting later this month.
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