Higher sales of heavy trucks boost Navistar profit
Hauliers rush to replace older trucks with more fuel-efficient vehicles to keep up with increasing US freight demand
Bengaluru — Navistar International reported better-than-expected quarterly profit and revenue on Tuesday, as strong freight demand helped drive sales of its high-margin heavy-duty trucks. Deliveries of the company’s long-haul Class 8 trucks — used by the big rigs that haul freight along the US’s highways — are expected to rise in 2019 as hauliers rush to replace older trucks with more fuel-efficient vehicles to keep up with increasing US freight demand. Production for these trucks is expected to rise 5% to 335,000 units in 2019, according to ACT Research, the industry body tracking the commercial vehicle market. Lisle, Illinois-based Navistar said it now expects to deliver 265,000-295,000 of its Class 8 vehicles in 2019, from the 255,000-285,000 units range it forecast earlier. While the overall truck market has remained strong, Navistar’s stock is down 45% in 2018, taking a hit from broader declines in industrial stocks on the back of the ongoing trade war between the US and China....
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