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WARRENVILLE, Ill. – Navistar International Corp., parent company of International Truck & Engine Corp., today reported strong revenue for the three months ended April 30, 2005, driven by favorable market conditions.
| INTERNATIONAL IS "TAKING IT TO THE STREETS" | |
‘Taking It to the Streets’ Tour Showcases 20 International Truck and Engine Corp. Trucks – Including the World’s Biggest Pick-Up
Guinness, get out your record books. International Truck and Engine Corp., which manufactures the world’s biggest pick-up truck, has kicked it up another notch. Starting June 29, the world’s biggest truck tour hits the road. International and its nationwide dealer network is networking with customers on a cross-country tour of 20 commercial trucks and some trailers full of goodies that won’t disappoint. “Commercial truck owners, fleet managers and maintainers have some of the toughest jobs in the country, but that doesn’t mean they can’t do their job and have a little fun too,” said Al Saltiel, vice president of marketing for International’s Truck Group. “We’ve created an experience for our customers that combines our Midwestern hospitality with some good old fashioned tire kicking.” There’s no charge for the tire-kicking at which attendees can try their hand at two ride-and-drive courses, relax in the air-conditioned customer lounge or visit one of the fun stations, such as the remote control course with a slightly smaller version of the world’s biggest pick-up. Visitors will even get a Taking it to the Streets Tour 2005 t-shirt (while supplies last). The tour will visit eight cities in the United States and Canada, beginning with Chicago at U.S. Cellular Field on June 29 and 30. International says the tour has an urban focus, meaning it features trucks like the market leading International® 4000 Series, which are commonly seen around the cities delivering fish, auto parts, beverages and the like. But it will also have dump trucks and other work trucks, as well as our popular International® 8000 Series heavy truck favored for regional hauls. Headlining the tour are some new members of the International line – the International® CF Series. These cab-forward trucks allowing for greater visibility and maneuverability. And yes, the International® CXT, the world’s largest pick-up that comedian Jay Leno wrote about, and the sporty new International® RXT will be available for test drives, too. In addition to the ride and drive opportunities, customers will be able to take advantage of show-only financing and warranty specials, sweepstakes to win an International CF Series truck, a NASCAR race package to meet NASCAR champion driver Kurt Busch and IRWIN tools skills competitions. As an added bonus, International will also be demonstrating its Aware™ Vehicle Intelligence, a telematics system that enables the fleet manager to monitor truck routes, performance, maintenance, security and fuel. International experts in the areas of engine, finance, used truck, parts and service will also be available. Each event will have representation area dealers who will be on hand to answer questions and help attendees feel at home. “This is a special opportunity for our customers to see all that International offers in a dynamic setting and for attendees to find out why so many customers put their trust in our dealers,” said David Johanneson, group vice president, sales and distribution, International. The first Taking It to the Streets event will take place in Chicago on June 29 and 30 at U.S. Cellular Field from 9 a.m. to 7 p.m. both days. At the first event, International’s special guests will include students from the Chicago Vocational Career Academy, who participate in a nationally certified high school technical training program that focuses on medium- and heavy-duty trucks and diesel engines. The students will extend their training with walk-arounds, engineer briefings and rides in International® trucks. Dates and locations for stops after Chicago include: To register for Taking It to the Streets, please visit www.internationaltrucktour.com or call the International Event Help Line at 866/483-2001. The Taking it to the Streets Tour is generously supported by Irwin Industrial Tools, Road Ranger, Allison, Michelin, CAT and Cummins. Source: www.internationaldelivers.com |
The company said it earned $53 million, equal to $0.70 per diluted common share, for the three months ended April 30, 2005, compared with $52 million, equal to $0.68 per diluted common share, in the same period a year earlier. Previously, the company indicated that second quarter earnings would be in the range of $0.65 to $0.70 per diluted common share. Consolidated sales and revenues from manufacturing and financial services operations for the second quarter of 2005 totaled $3 billion, compared with the $2.4 billion reported in the second quarter of 2004.
For the first six months of fiscal 2005, Navistar reported net income of $71 million, equal to $0.95 per diluted common share, compared with $38 million, or $0.52 per diluted common share, in the first six months a year ago. Consolidated first-half sales and revenues amounted to $5.5 billion, compared with $4.3 billion in the first six months of 2004.
Daniel Ustian, Navistar chairman, president and chief executive officer, said the second quarter results reflect improved operating results from the company's truck group, which benefited from a continued favorable economic environment driving demand for commercial trucks.
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"Steel price increases are stabilizing and supplier constraints appear to be easing so we are anticipating accelerated earnings gains in the second half of the year, particularly the fourth quarter which historically is the strongest quarter of the year for our company," Ustian said.
INCREASED ESTIMATES. The company has increased its forecast for United States and Canadian truck industry retail sales volume for its fiscal year ending Oct. 31, 2005. Sales volume for Class 6 through 8 trucks and school buses in the fiscal year ending Oct. 31, 2005 is now forecast at 408,000 units, up 5 percent from the 389,500 units forecast by the company last December. Medium truck volume has been increased 9,000 units to 109,000 units.
Ustian said that earnings per share for fiscal 2005 are expected to be in the range of $4.80 to $5.10 per diluted common share, up from previous guidance of $4.60 to $5.00 per diluted share. He also said that the company anticipates earnings for the third quarter ending July 31, 2005, to be in the range of $0.75 to $0.85 per diluted common share. Revenues for the full year should be in the range of $11.4 billion to $11.7 billion, up from the $9.7 billion reported in 2004.
According to Ustian, the company anticipates that growth in both the truck and engine businesses over the next several years will be achieved through the introduction of new products and entry into new markets while the company continues to improve its cost structure.
"We are progressing toward our bold goal of becoming a $15 billion company with a 10-percent segment return by 2009 through scale, global sourcing and cost reductions," Ustian said. "Some of the initiatives announced recently will help give us that scale to improve our cost structure."
Ustian noted that during the quarter, the company acquired MWM Motores Diesel (MWM), a major Brazilian diesel engine producer of medium and high-speed diesel engines in the 50 to 310 horsepower range. The acquisition, which is subject to review by the Brazilian antitrust regulatory authority, supports the company's strategy to grow its engine business at both ends of the horsepower range of diesel engines currently produced and to better serve customers in the South American market. This acquisition will increase global sourcing opportunities and reduce costs for engine products. MWM's financial results for April have been consolidated in Navistar's second quarter financial statements.
Additionally, Ustian said that the company continues to utilize the services of Mahindra & Mahindra of India to lower costs through sourcing components and materials as well as to provide engineering services. The goal is to achieve a 20-percent reduction in the cost of sourced components and services by the end of 2005.
CAB-FORWARD PRODUCTION ON TRACK. Production began May 16 on the company's new Class 5 series line of trucks. The cab-forward vehicle, which rounds out International's offering of medium and heavy trucks, is used in such vocations as pickup and delivery, utility, recovery, landscaping and construction.
"The cab forward market has been growing at a rapid pace and our entry required minimal investment since production is leveraged through our Blue Diamond joint venture with Ford Motor Co.," Ustian said.
Worldwide shipments of International® brand medium and heavy trucks and IC brand school buses during the second quarter totaled 32,900 units, compared with 28,100 units in the first quarter this year and 26,500 units in the second quarter of 2004.