Navistar reported its first profitable quarter of the year with net income of $135 million, a fivefold increase from the loss of $34 million posted for the same period last year.
For the full fiscal year, Navistar reported a net income of $30 million compared to a loss of $97 million for FY2016. It was also the first annual profit reported by Navistar since 2011, and the company also set a 52-week high for trading on the New York Stock Exchange.
“Our 2017 was a breakthrough year, as we returned to profitability and grew our market share 1.5 points,” said Troy A. Clarke, chairman, president and CEO. “These results were driven by stronger sales, our steady investment in the industry's newest product lineup, early results from our strategic alliance with Volkswagen Truck & Bus and our ongoing focus on cost.”
Navistar’s fourth quarter earnings per share of $1.36 beat the analyst estimate of $0.64 as the company increased its revenue by 26 percent to $2.6 billion, which included $11 million in adjustments, that beat estimates of $2.3 billion. Navistar said the revenue increase was due mostly to a 31-percent increase in sales of the company’s core market of Class 6 through 8 trucks and buses in the U.S. and Canada.
Navistar also pointed to its next-generation powertrains with alliance partner Volkswagen Truck & Bus. These powertrains include big bore diesel and new zero-emissions, medium-duty electric IC Bus school buses expected to launch in early 2019.
The company also announced its OnCommand Connection vehicle telematics and diagnostics platform is equipped in an industry-leading 37,000 vehicles.
Navistar is bullish on its 2018 prospects, citing expected revenues between $9 billion and $9.5 billion.
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