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Navistar reports FY2018 net income of $340M vs. $30M in FY 2017

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LISLE, Ill. — Navistar International Corp. had a fourth quarter 2018 net income of $188 million, or $1.89 per diluted share, compared to fourth quarter 2017 net income of $135 million, or $1.36 per diluted share, company officials have revealed.

Navistar reported net income of $340 million, or $3.41 per diluted share for fiscal year 2018, versus net income of $30 million, or $0.32 per diluted share, for fiscal year 2017.

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Navistar reported it was the only OEM to grow its Class 8 market share during its fiscal year that ended September 30, 2018. Pictured is International LT Series Class 8 tractor. (Courtesy: NAVISTAR)

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Navistar said it was the only OEM to show growth in the Class 8 market during its fiscal year which ended September 30, 2018.

Fourth quarter 2018 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 20 percent to $322 million, versus $268 million one year ago.

Fiscal year 2018 adjusted EBITDA increased 42 percent to $826 million, versus $582 million in 2017. Full-year adjusted EBITDA margins increased to 8.1 percent, up from 6.8 percent for 2017. This marks the company’s sixth consecutive year of annual growth in adjusted EBITDA on both a dollar and percentage basis.

Revenues in the fourth quarter increased 28 percent, to $3.3 billion, compared to fourth quarter 2017.

The revenue increase was largely driven by a 45 percent increase in the company’s core volumes, which represent its sales of Class 6-8 trucks and buses in the United States and Canada.

Revenue for fiscal year 2018 was up 20 percent to $10.25 billion, compared to $8.6 billion in fiscal year 2017, attributable to annual revenue growth in all four operating segments.

Class 8 retail market share grew to 13.5 percent in fiscal year 2018 versus 11.8 percent in fiscal year 2017.

Navistar finished fourth quarter 2018 with $1.42 billion in consolidated cash, cash equivalents and marketable securities, and with $1.36 billion in manufacturing cash, cash equivalents and marketable securities. For the year, the company generated $307 million of manufacturing free cash flow.

“2018 was a very strong year for the industry, and a breakout year for Navistar,” said Troy Clarke, chairman, president and chief executive officer. “We were the only truck OEM to grow Class 8 share during the year. With the industry’s newest product line-up, superior quality and a strong focus on customer uptime, we expect to gain market share in 2019 for the third year in a row.”

The company finished 2018 with strong momentum across the board, Clarke said.

During the fourth quarter, the company launched the International CV Series line of Class 4/5 trucks, the only Class 4/5 truck that is designed, distributed and supported by a manufacturer specializing in commercial vehicles. Year-over-year growth in heavy retail market share, up 2.5 share points, was attributable to strong sales of the International LT Series on-highway truck and the 12.4-liter A26 engine. The company’s IC Bus school buses, led by alternative-fuel offerings, also improved retail share by 1.3 share points.

Additionally, its medium-duty International MV Series and vocational International HV Series built improved order share resulting in a strong backlog. The company reported a backlog of 45,400 units in its Core markets, up from 15,600 at the end of 2017.

Last month, Navistar announced a definitive agreement under which affiliates of Cerberus Capital Management, L.P. will acquire a majority interest in Navistar’s defense business, Navistar Defense.

Following the close of the transaction, Cerberus will become a 70 percent owner and Navistar will remain a 30 percent owner. The agreement also includes an exclusive long-term supply agreement for commercial parts and chassis. The transaction, subject to regulatory approval, is expected to close in the first quarter of 2019.

In October, Navistar improved its debt profile by repaying its 4.5% senior subordinated convertible notes issued in October 2013. Repayment of the outstanding principal of $200 million at maturity was funded with cash on hand.

The company provided the following 2019 industry and financial guidance, including the fully consolidated financial impact of Navistar Defense:

  • Industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be 395,000 to 425,000 units, with Class 8 retail deliveries of 265,000 to 295,000 units.
  • Revenues are expected to be between $10.75 billion and $11.25 billion.
  • Adjusted EBITDA is expected to be between $850 million and $900 million.

Following the completion of the partial sale of Navistar Defense, the company will update its 2019 guidance.

“While we expect 2019 to be another strong year for Navistar and the industry, it’s important to recognize that Navistar as an investment is much more than just a cycle play,” Clarke said. “As our ongoing improvements demonstrate, the company also has strong opportunities to benefit by recapturing market share, growing parts revenue, improving margins, generating free cash flow and further de-risking the balance sheet. For all these reasons, looking forward the company is well positioned to generate superior shareholder value.”

 

 

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Women In Trucking names its 2019 top woman-owned businesses

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Angela Eliacostas is the founder and owner of AGT Global Logistics, one of the companies the Women In Trucking Association has named its 2019 Top Women-Owned Businesses in Transportation. (Courtesy: Women in Trucking)

PLOVER, Wisc. —  The Women In Trucking Association (WIT) has announced its annual list of the “Top Woman-Owned Businesses in Transportation.”

The names of the companies being recognized in 2019 were released in the latest edition of Redefining the Road, the official magazine of WIT.

WIT created the list was created to recognize women in leadership and encourage more women to become proactive leaders in their organizations and even start their own businesses, WIT president and CEO Ellen Voie said. The program supports WIT’s overall mission “To encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face.”

Entrepreneurship is a viable means of economic self-sufficiency, and many women are choosing an enterprise connected to transportation to be part of their career aspirations, according to Brian Everett, publisher of Redefining the Road.

Companies considered for the recognition must meet criteria that includes majority ownership by a woman, financial stability and growth, innovation and entrepreneurial spirit. Each company was nominated and chosen based upon business success and accomplishments, including those related to gender diversity.

This year’s list includes companies from a diverse range of business sectors in the commercial freight transportation marketplace, including motor carriers, third-party logistics companies and original equipment manufacturers.

Companies named to the 2019 “Top Woman-Owned Businesses” list and their primary female business owners are:

  • Bennett International Group; Marcia G. Taylor, CEO
  • Kenco Logistics; Jane Kennedy Greene, chairwoman
  • London Auto Truck Center; Donna Childers, vice president
  • Rihm Family Companies; Kari Rihm, president and CEO
  • Veriha Trucking, Inc.; Karen Smerchek, president
  • Rush Trucking Corp.; Andra Rush, CEO
  • Aria Logistics; Arelis Gutierrez, CEO
  • Lodgewood Enterprises; Arlene Gagne, president
  • S-2international, LLC; Jennifer Mead, CEO
  • International Express Trucking; Karen Duff, president and CEO
  • Brenny Transportation, Inc.; Joyce Brenny, CEO and founder
  • Knichel Logistics; Kristy Knichel, CEO
  • Garner Trucking; Sherri Garner Brumbaugh, CEO
  • LYNC Logistics; Cindy Lee, president
  • Ontario Truck Training Academy; Yvette Lagrois, president
  • AGT Global Logistics; Angela Eliacostas, owner and founder
  • Powersource Transportation; (Barb Bakos, president
  • LaunchIt Public Relations; Susan Fall, president
  • United Federal Logistics, Inc.; Jennifer Behnke, president
  • BCP Transportation; Nancy Spelsberg, Ardis Jourdan, Kristie Rozinski
  • Ladybird Logistics Ltd.; Felicia Payin Marfo, managing director
  • DGT Trucking; Donna G. Sleasman, owner
  • RFX Inc.; Kimberly Welby, president and CEO)

These companies will be recognized during a special program at the Women In Trucking Accelerate! Conference & Expo, Sept. 30 – Oct. 2 in Dallas. For more information, visit WomenInTrucking.org.

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ATA Truck Tonnage Index falls 1.1% in June, but 1.5% higher than June 2018

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Compared with June 2018, the SA index increased 1.5%, the smallest year-over-year gain since April 2017.

ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1.1% in June after falling 4% in May. In June, the index equaled 115.2 (2015=100) compared with 116.5 in May.

“Tonnage continues to show resilience as it posted the 26th year-over-year increase despite falling for the second straight month sequentially,” said ATA Chief Economist Bob Costello. “The year-over-year gain was the smallest over the past two years, but the level of freight remains quite high. Tonnage is outperforming other trucking metrics as heavy freight sectors, like tank truck, are witnessing better freight levels than sectors like dry van, which has a lower average weight per load.”

May’s reading was revised up compared with our June press release.

Compared with June 2018, the SA index increased 1.5%, the smallest year-over-year gain since April 2017.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 117.6 in June, 3.3% below May level (121.7). In calculating the index, 100 represents 2015.

Trucking serves as a barometer of the U.S. economy, representing 70.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.77 billion tons of freight in 2017. Motor carriers collected $700.1 billion, or 79.3% of total revenue earned by all transport modes.

ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

 

 

 

 

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JK Moving modernizes moving with mobile app and virtual AI estimating options

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The JK mobile app enables clients to go onto the app to receive and review estimates; accept and edit estimates; make payments; communicate with their sales consultant and move coordinator; and prepare for the move day. (Courtesy: JK MOVING)

STERLING, Va. — JK Moving Services, a global moving, storage, relocation and logistics enterprise, says it has added new technologies to further modernize the move experience for customers, including a mobile app to help the customer manage the move process and software to do virtual estimates with either a real person or by an artificial intelligence interface.

“Great technology makes for better moves and that’s why we invest in cutting-edge solutions. Mobile apps and AI are now part of our customer tool kit,” said CEO Chuck Kuhn. “Giving clients choices in how they work with us helps us meet a variety of customer needs and styles.”

Kuhn said JK’s tech team had created a downloadable mobile app that enables clients to go onto the app to receive and review estimates; accept and edit estimates; make payments; communicate with their sales consultant and move coordinator; and prepare for the move day. The app is monitored 24/7 by the JK team.

Since this custom app was developed in-house, JK is able to incorporate feedback and improvements quickly, Kuhn said, adding that the mobile app complements new estimating software that clients can use to get a virtual estimate.

The client gives a tour of their house with their phone to their choice of a real or AI representative. The AI estimating software recognizes shapes of objects and makes an inventory list. From that tour, JK can provide an estimate and send it to the mobile app. Estimators still are available to come to someone’s house if that is what the client prefers.

“Going mobile improves our customer offerings since many clients want products that are seamless, easy and quick. We’re receiving terrific feedback for our new mobile app and virtual estimating. These tech advancements put us at the forefront of the residential moving business,” said David Cox, executive vice president, residential, JK Moving.

Cox said the mobile app also reduces the use of paper, which is good for the environment. Environmental stewardship is part of the JK culture and a consideration in many of the company’s innovations.

“In fact, JK was one of the first on many environmentally friendly practices, including: ordering Tesla semi moving trucks, embracing new technologies that will further its aggressive carbon emissions-reduction goals, leading with box-less moves and major recycling efforts, and starting a chemical free community farm,” he said.

Another recent modernization includes the addition of dashcam technology in its whole fleet. These cameras are installed in the truck cabs. When a trigger event happens, such as a sudden stop or jostling movement, a 12-second video clip gets sent to DriveCam, a third-party vendor that monitors and evaluates the incidents. DriveCam sends JK feedback when opportunities arise to improve driving behaviors, enabling JK to provide customized training to drivers. The dashcams have resulted in employees improving their driving skills and experiencing fewer triggering events, resulting in fewer accidents and a reduction in claims.

 

 

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