Navistar Sets Sights on Major Growth
Navistar International’s goal is to double in size and become a $15 billion company in the next eight to 11 years, according to Daniel Ustian, president, CEO and newly named chairman-elect.
Ustian described the plan as “bold and ambitious” in a statement released before meeting with security analysts and shareowners in New York City Dec. 15. International Truck and Engine Corp. is Navistar’s operating company.
“We plan to become a $15 billion company by increasing market share with existing products, through the introduction of new products in our current markets, as well as by finding new business opportunities in similar markets,” he said.
Ustian touted the company’s establishment of a business unit to sell products and services to the U.S. military and its ability to meet 2007 federal emission standards without using costly catalytic converters.
After six losing quarters, Navistar rebounded to profitability in the second half of fiscal 2003. When its fiscal year ended Oct. 31, Navistar’s sales and revenues were $7.3 billion. A year earlier sales and revenues were $6.8 billion. It achieved its record $8.6 billion in fiscal 1999.
Ustian said he expects the retail sales of U.S. and Canadian Class 6-8 trucks and school buses in fiscal 2004 to total 304,500 units, which would be up 16 percent from the prior year.
He said the company’s forecast for 2004 retail Class 6, 7 and 8 industry truck sales volume is lower than that forecast by some other sources; Navistar tends to make conservative forecasts, Ustian added.
Also, the company’s Springfield, Ohio, medium truck assembly plant has increased production by 10 units to 177 trucks daily.