WARRENVILLE, Ill. — Navistar managed to post a US$17 million profit in the first quarter despite continuing weak truck sales in the North American market.
“First quarter results reflect the progress we are making in the toughest of economic conditions and in a normally difficult seasonal quarter for our company due to fewer operating days,” said Daniel C. Ustian, Navistar’s chairman, president and chief executive officer. “And we were able to deliver those results while investing in the future. The last half of 2010 will provide opportunities for even better margins as we launch our 2010 EGR strategies.”
Navistar reiterated that it will be forging ahead with its in-cylinder EPA2010 emissions solution and said it has submitted several versions of its MaxxForce engine to the EPA for certification.
Navistar’s truck unit reached 31% market share in the Class 6-8 segments (including buses) in the US and Canada, according to the company, generating a US$35 million profit thanks largely to reductions in production costs.
Meanwhile Navistar’s engine business generated a US$54 million profiit in the first quarter thanks to higher than expected demand in Brazil and from Ford. Despite the profitable first quarter, it was significantly less than the US$234 million net income posted in the first quarter of last year.
Navistar said it expects total truck industry retail sales for Class 6-8 trucks and school buses in the US and Canada to total 195,000-215,000 units this year.
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