Navistar International Corp (NAV) recently bagged an order of 471 armored patrol trucks worth $357 million from the U.S. Marine Corps Systems Command. This order is considered to be the company’s biggest request for its MaxxPro Dash vehicles, which will feature DXM independent suspension from this year.
Navistar has decided to produce the new units from its Texas and Mississippi plants. The order is expected to be completed by September 2011.
The continuous success of the U.S. troops in Afghanistan has raised the constant need for proper training, equipment and support to the security forces based in the region. This has significantly raised the demand for Navistar vehicles, thereby strengthening the company’s financials. Going forward, Navistar plans to introduce a wide range of vehicles, services and parts, especially to support the country’s security mission in the face of growing terror threats worldwide.
During the second quarter of fiscal 2011, Navistar earned a profit of $80 million or $1.02 per share compared with the year-ago profit of $43 million or 60 cents per share. The remarkable improvement in income was attributable to increased orders, enhanced productivity and benefits from the company’s expansion plan. Revenues also climbed 22.3% to $3.36 billion, driven by improved performances by each of its individual segments.
For full fiscal 2011, the company projects its net income to range between $427 million ($5.50 per share) and $465 million($6.00 per share), excluding transition costs associated with the integration of the truck and engine engineering operation. However, its military business has set a goal of $1.9 billion of revenues, particularly because of strong demand in Navistar Defense.
Navistar, based in Warrenville, Illinois, manufactures and markets commercial trucks, mid-range diesel engines, buses, military vehicles and chassis for motor homes and step-vans, and provides service parts for various trucks and trailers.
The company is one of the largest truck producers after Daimler and PACCAR. It operates in three industry segments: Truck, Engine, Parts (collectively called manufacturing operations) and Financial Services. Its key competitors include Daimler AG (DDAIF), PACCAR Inc. (PCAR) and Volvo AB (VOLVY).
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