Navistar International Corporation announced Tuesday a second quarter 2021 net income of $163 million, or $1.63 per diluted share, compared to second quarter 2020 net loss of $38 million, or $0.38 per diluted share. The results in the second quarter of 2021 included $91 million of tax-effected significant items.
Navistar says second quarter 2021 adjusted net income was $72 million compared to a loss of $10 million in second quarter 2020. Revenues in the quarter were $2.2 billion, compared to $1.9 billion in the second quarter last year. Charge outs in the company's core (Class 6-8 trucks and buses in the United States and Canada) market were 13,900 units in the second quarter of 2021, and second quarter 2021 adjusted EBITDA nearly doubled year-over-year to $198 million, or 9.2 percent of revenue, versus $88 million, or 4.6 percent of revenue, a year ago.
Navistar says it finished second quarter 2021 with $1.2 billion in consolidated cash and cash equivalents, including $1.2 billion in manufacturing cash and cash equivalents.
"We delivered strong operating results in our second quarter," says Persio Lisboa, CEO. "The strong trucking industry, fueled by robust economic growth, is supporting higher order activity by our customers and our team is working hard to overcome the supply chain challenges to best support their transportation needs."
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Navistar also announced Tuesday it has increased production line rates in all of its vehicle assembly plants, including adding a second shift to its truck assembly plant in Escobedo, Mexico. The pace of the increases has been slower than planned due to supply chain constraints. Its San Antonio manufacturing facility also is on schedule to begin production of vehicles in early 2022 and the expansion of its Huntsville, Ala., engine facility remains on track for completion in the first half of 2023.
Navistar reports it also made progress on its Navistar 4.0 business strategy throughout the quarter. In March, the company launched a new aftermarket product line to provide high-quality aftermarket parts for Class 2-5 diesel engines and engine components called Diamond Advantage Diesel Parts. Diamond Advantage parts will be distributed through Navistar's parts distribution centers to warehouse distributors, diesel parts specialists and the International dealer network. The new product line reflects the company's commitment to supporting customers on the road through an extensive Class 2-8 product offering.
Additionally, in the connected space, the company announced the upcoming availability of Cummins Connected Software Updates and programmable trim parameters for their X15 engines through Navistar's OnCommand Connection portal. This integration builds upon the company's over-the-air capability on the International A26 engine — making it the first and only OEM to use a single, factory-installed device to equip multiple engine models with remote programming. This is enabled by Navistar's second-generation telematics devices, which began production in mid-2019, the company says.
Finally, the company is also making progress related to its pending merger with TRATON, which remains on track to close in the middle of 2021. The company has announced a conditional call of the 9.5 percent Senior Secured Notes and its 4.75 percent Tax Exempt Bonds upon the closing of the merger.
"Guided by our Navistar 4.0 strategy and fueled by the hard work of our team, Navistar is capitalizing on the strong demand in the industry today," says Lisboa. "This, together with the many opportunities available to us when our merger with TRATON is complete, leads to a very exciting future for our company, our customers and all of our stakeholders."