Navistar International Corp.posted net income of $544 million for its fiscal 1999, its second highest in history.
Revenue for the year, which ended October 31, was $8.33 billion. Income for fiscal 1998 was $299 million on revenue of $7.63 billion.
Navistar chairman John Horne noted that 1999 operating income was $837 million, up from $634 million in 1998 and better than the previous record of $827 million set in 1979.
Horne said the record earning peformance was achieved on modest gains in sales and revenues as manufacturing gross margin for the year increased to 18.0% from 15.3% in 1998.
Fourth quarter income was $132 million on revenue of $2.47 billion versus $144 million on $2.17 billion in fourth quarter 1998.
Horne said that, as expected, capacity constraints and a realignment of production schedules impacted revenue growth in fourth quarter.
Navistar's worldwide shipments in 1999 totaled 55,300 medium trucks, 21,700 school buses (Class 5-7 GVW) and 52,000 Class 8 trucks. In 1998 the company shipped 55,700 medium trucks, 21,800 school buses, and 50,100 heavy duty trucks. Shipments of midrange diesel engines to other original equipment manufacturers totaled 286,500, up 34% from 1998. Total worldwide engine shipments were 374,200 versus 300,500 in 1998.
Navistar is forecasting total U.S. and Canadian truck industry volume in fiscal 2000 at 405,000 units, down from 465,500 in fiscal 1999. Demand for heavy trucks is expected to reach 245,000 units. Demand for medium trucks is estimated at 128,000 units.
While the company does expect a downturn in industry demand, Horne noted that there has been a significant change in the industry and, even with a downturn, demand will remain above the traditional levels of only a few years ago.