LISLE, Ill. – Navistar has announced a US$170-million profit for the third quarter, on revenues of $2.6 billion.
This despite acknowledging an impact of supplier constraints that delayed deliveries and impacted volumes. Revenues were up 18% year-over-year, mostly due to a 26% increase in core market (Classes 6-8 trucks and buses in the U.S. 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’s market share improved 2.7% year-over-year, thanks to sales of its LT Series highway truck and the A26 engine. Its A26 engine market share penetration more than doubled from a year ago, the company announced.
Navistar also upped its guidance for the rest of the year, calling for Classes 6-8 truck and bus retail deliveries in the U.S. and Canada to reach 390,000-410,000 units, and Class 8 retail deliveries to total 260,000-280,000 units.
It now forecasts 2019 retail deliveries of Classes 6-8 trucks and buses in the U.S. and Canada to reach 385,000-415,000 units, with Class 8 retail deliveries between 255,000-285,000 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.”
Navistar’s truck segment saw profits grow to $165 million, up from $7 million for the same period in 2017. Net sales in the segment were up 25%. However, the company acknowledged the segment was impacted by industry supplier constraints that resulted in higher company inventory, lower volumes, cost inefficiencies in the assembly process and additional freight costs.
The International LT is selling well, helping Navistar boost profits.