WARRENVILLE, Ill. — Navistar yesterday reported fourth quarter net income of US$86 million, a reversal of fortunes from its US$343 million loss for the same period last year.
The company said it was particularly proud of the result since it came amid the worst truck market in 47 years.
“Despite current economic challenges, we have remained focused on our three-pillar strategy which includes being profitable in the toughest of times while investing in our future for profitable growth,” said Daniel C. Ustian, Navistar’s chairman, president and chief executive officer.
Navistar’s Q4 results came as commercial truck volume spiked in advance of the EPA2010 emissions standards. Net income for the 2009 fiscal year totaled US$320 million on net sales and revenues of US$11.6 billion, up from a net income of US$134 million in 2008.
“During one of the weakest economies we can recall, we are pleased with our performance and our ability to continue to invest in the long-term future of the business,” said A.J. Cederoth, Navistar’s executive vice-president and chief financial officer. “As a result, we believe we are well positioned to capitalize on a variety of opportunities that lie ahead.”
Navistar’s truck segment actually saw profits decline in 2009, from US$805 million in 08 to $147 million in 09. However, Navistar says its Class 8 market share rose 6% in the fiscal year. The company’s engine business delivered a US$253 million profit in 2009 compared to a loss of US$366 million in 08, despite selling 76,200 fewer units this year. And Navistar’s parts segment was also profitable, reporting a profit of US$436 million on the year, up 72% compared to 2008.
Navistar predicts truck industry retail sales volumes for Class 6-8 trucks (and school buses) in the US and Canada will total 175,000 to 215,000 units in 2010.
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