Navistar International Corporation Thursday announced third quarter 2018 net income of $170 million, or $1.71 per diluted share, compared to third quarter 2017 net income of $37 million, or $0.38 per diluted share.
Navistar says third quarter 2018 EBITDA was $284 million, versus EBITDA of $160 million in the same period one year earlier. The third quarter of 2018 included $66 million in adjustments, including a $71 million gain from a one-time settlement, $4 million of pre-existing warranty accrual reversals, and $9 million in charges for asset impairments and restructuring costs. Excluding those items, Navistar states adjusted EBITDA was $218 million in the third quarter of 2018, compared to $194 million in the same period one year ago.
While adjusted EBITDA for the third quarter was affected by supplier constraints that delayed deliveries and impacted volumes, Navistar says it aggressively managed these headwinds. These vehicles are making their way through the delivery process and will be reflected in fourth quarter sales.
Revenues in the quarter were $2.6 billion, up 18 percent from the same period one year ago, primarily due to a 26 percent increase in Core market (Class 6-8 trucks and buses in the United States and Canada) volumes.
“We had a strong quarter that took full advantage of healthy industry volumes and the market’s enthusiasm for our new products,” says Troy A. Clarke, Navistar chairman, president and CEO.
Navistar ended third quarter 2018 with $1.12 billion in consolidated cash, cash equivalents and marketable securities. Manufacturing cash, cash equivalents and marketable securities were $1.08 billion at the end of the quarter.
The company states it had a number of product highlights during its third quarter. Year-over-year growth in Class 8 heavy retail market share, up 2.7 points, was attributable to strong sales of the LT Series on-highway truck and the 12.4-liter A26 engine. International A26 engine market share penetration more than doubled from the year ago quarter, and the engine is now also available in the company’s severe service vehicles, the HV Series and HX Series. Additionally, the new MV Series contributed to 66 percent growth in medium-duty orders.
Navistar says truck segment net sales increased 25 percent to $1.9 billion compared to third quarter 2017, due to higher volumes in Core markets, an increase in military sales and a favorable shift in model mix. Parts segment net sales increased $19 million, to $605 million, compared to third quarter 2017, due to continued double-digit growth of the Fleetrite brand, partially offset by lower Blue Diamond Parts (BDP) sales, the company adds.