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Navistar Provides Update on First Quarter Operations.

Article Excerpt
Growth In Non-Traditional Markets Make Up For Anticipated Decline In United States, Canadian Markets

WARRENVILLE, Ill. -- Navistar International Corporation (OTC: NAVZ) today reported that growth in non-traditional vehicle markets is paying off as total first quarter worldwide shipments were flat despite a 6 percent decline in Class 6-8 commercial truck and school bus shipments in the United States and Canada brought about by a mid-cycle correction coupled with the end of the 2006 pre-buy.

Worldwide shipments of school buses, Class 6-7 medium trucks and Class 8 heavy trucks and non-traditional vehicles for the three months ended January 31, 2007, totaled 27,500 units, down 0.4 percent from the 27,600 units shipped in the same period a year earlier. Non-traditional shipments were up 24 percent to 7,500 units from 6,000 units in the first quarter of 2006. Non-traditional shipments include military vehicles sold overseas as well as other export sales, small bus, Class 4-5 vehicles and stripped chassis for the motor home and step-van markets. With the exception of export, Class 5 and military businesses, Navistar did not participate in these markets in 2005.

Shipments of schools buses, Class 6-7 medium truck and Class 8 heavy trucks in the United States and Canada in the first quarter totaled 22,400 units, down 6.4 percent from the 24,000 units shipped in the first quarter of 2006.

Navistar is the world's largest mid-range diesel engine manufacturer and the company's engine facilities shipped a total of 104,000 units during the quarter, down from 123,100 units a year earlier. Shipments of diesel engines to Ford Motor Company were down by nearly 19,000 units.

The company has not changed its previously announced forecast of industry volume for the United States and Canada for its fiscal year ending October 31, 2007. It is anticipated that sales of medium and heavy trucks and school buses will range from 325,000 to 347,000 units, which would represent a decline...

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