Navistar International Corp. today announced its operating company International Truck and Engine Corp. in partnership with SanYang Industry Company LTD of Taiwan has won a five-year contract worth approximately $400 million U.S.
The contract calls for delivery of up to 5,000 trucks to the Taiwan Ministry of National Defense. SanYang is the primary contractor and International is a subcontractor. The contract was awarded April 13th. Delivery of completed vehicles will begin in May 2006.
Parts and components for the trucks will be built and prepared into kits in the U.S. and assembled in Taiwan to meet local content requirements.
The International 7400 4x4 vehicles with I-6 engines will be used in troop carrier and general cargo applications by Taiwan’s armed forces. The new International vehicles will replace the M35 truck built by AM General for the past 30 years.
Daniel C. Ustian, Navistar chairman, president and CEO, stated that based on the company’s current truck industry volume forecast of 389,500 units, earnings in 2005 should be in the range of at least $4.60 to $5.00 per diluted common share. Navistar also announced it expects price per diluted common share in its second fiscal quarter ending April 30, 2004 to be in the area of $0.65 to $0.70 compared with $0.67 per diluted common share in the second quarter a year ago.
Navistar International Corp. (NYSE: NAV) is the parent company of International Truck and Engine Corp. For more information, go to www.internationaldelivers.com.