Leading truck industry indicators such as pricing, used truck inventories and truck tonnage have stabilized, but the demand for new trucks is lower than expected a few months ago, says Navistar International Chairman, President and CEO John Horne.

The company has reduced its forecast for heavy and medium truck sales in the U.S. and Canada by 10,000 units, to 284,500 for its fiscal year ending October 2002. Industry sales in fiscal 2001 were approximately 312,700 units. All of Navistar’s forecast reduction came in the heavy truck segment, where the company now expects industry sales of 144,000 units. Forecasted demand for medium trucks remains unchanged at 112,500 units, including 87,500 Class 6-7.
Navistar reported a loss of $56 million on sales and revenues of $1.5 billion for its first fiscal quarter, which ended Jan. 31. That compares to a $35 million loss on about the same sales and revenues in first quarter 2001.
Horne emphasized that the first quarter results belie the fundamental changes the company has made to enhance its product development process, reduce fixed overhead and develop the ability to adjust variable costs throughout the cycle. He said that by the end of 2002, when all new International truck models have been introduced, the company will have much lower manufacturing costs and will begin the next phase of its truck strategy -- to lower fixed costs and implement a more flexible cost structure.
Worldwide shipments of International medium and heavy trucks and school buses during the first quarter totaled 16,700 units compared with 19,800 in the first quarter 2001. Shipments of V-8 diesel engines to other original equipment manufacturers during the quarter totaled 69,000 units, up from 67,500 units in the same period last year.
Overall estimated International brand market share in the first quarter is 26.3% compared to 25.1% a year ago. Class 6-7 market shares, where the company’s new International high performance truck currently competes, rose to 42.5% from 40.7% a year ago.