Navistar International Corp. reported a quarterly profit on Thursday (Sept. 6) after a $196 million tax benefit offset the high costs of its unsuccessful program to develop a new style of diesel engine.
Reuters reported that the U.S. maker of International-brand heavy trucks motorhomes and school buses also said it had begun looking to sell operations and was planning layoffs this quarter as it aims to cut operating costs by $150 million to $175 million next year as part of a push by newly named interim CEO Lewis Campbell. Navistar is also parent to RV builder Navistar RV, formerly Monaco RV LLC.
Navistar said net income had dropped to $84 million, or $1.22 per share, in the third quarter ended on July 31 from $1.4 billion, or $18.24 per share, a year earlier.
Without the tax benefit, the company would have lost $100 million, compared with a year-earlier loss of $54 million, also excluding special items.
Sales fell 6.1% to $3.28 billion from $3.49 billion.
“Clearly we are not pleased with these results,” Campbell said in a statement.
CEO Daniel Ustian, a 37-year veteran of the Lisle, Illinois-based company, retired last week and was replaced with Campbell. It also promoted Troy Clarke to the new role of president and chief operating officer.
The company said a combination of staff buyouts completed during its third quarter and layoffs to come in the fourth quarter would reduce its annual expenses by $70 million to $80 million.
Navistar had struggled to win U.S. Environmental Protection Agency (EPA) approval for its new diesel engine. Unlike rivals such as Paccar Inc. and Volvo AB, the company was attempting to limit emissions of the greenhouse gas nitrogen oxide without using the additive urea.
Last month, Navistar abandoned that effort, saying it would instead begin selling trucks with engines from Cummins Inc (CMI.N) early next year. In the meantime, it is paying fines of up to $3,755 per noncompliant engine it sells after the EPA last week nearly doubled the penalties it is imposing.
Navistar shares have lost about half their value over the past year, and the company has drawn the interest of activist investors including MHR Fund Management LLC and Icahn Associates Corp. Each of the two has a stake approaching 15% — the point that would trigger a poison-pill defense the company adopted in June.
The company’s four largest shareholders – a list that also includes Franklin Resources Inc and Gabelli Funds – collectively own more than 55% of Navistar.
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Monaco RV LLC today (Aug. 6) announced that it is changing its name to Navistar RV. According to a press release, Monaco, Holiday Rambler and R-Vision brands will remain “distinct and intact” under the Navistar RV subsidiary of Navistar Inc.
“The integration of Navistar and Monaco RV has resulted in better products and higher efficiencies,” said Daniel Ustian, Navistar chairman, president and CEO. “Updating the name of our RV company demonstrates our long-term commitment to the RV industry. When a customer buys a recreational vehicle built by Navistar RV, they know they’re getting products with proven components, many of which are used in other Navistar vehicles — vehicles that move American goods, help keep troops safe, and ensure the safe transportation of schoolchildren.”
Navistar acquired Monaco RV in 2009. Monaco, Holiday Rambler and R-Vision have been part of the Navistar family of brands for the last three years and the name change “is the natural next step in Navistar’s commitment to the business,” according to the company.
Since the acquisition, the company has streamlined operations and appointed a new executive management team. Navistar has also fully integrated the design, development, testing and validation of its recreational vehicles with the company’s commercial truck and bus product development organization, delivering vehicle engineering expertise unmatched in the RV industry.
Navistar RV maintains manufacturing operations for its R-Vision and Holiday Rambler towable units in Harrisburg, Ore., and Elkhart, Ind. The company’s Monaco and Holiday Rambler brand motorized RVs are produced in a fully integrated manufacturing facility located in Wakarusa, Ind. with powertrain, chassis and body assembly in one dedicated facility.
“Navistar brings more than 100 years of vehicle development and design experience to the Monaco, Holiday Rambler and R-Vision brands,” said William Osborne, president of Navistar RV. “With a foundation of Navistar’s business and design excellence, we’ll continue to produce some of the best recreational vehicles in the market.”
Monaco RV LLC is looking to hire around 100 new employees for two locations in Indiana.
WSBT TV, South Bend, reported that parent Navistar International Corp. recently began production of Monaco’s towable RV line at an old Elkhart plant near Nappanee Street and Hively. It used house the Custom Chassis Products building.
The entire towable line is being moved from the Monaco plant in Wakarusa to the Elkhart plant. That’s happening so Monaco can concentrate solely on building only motorized units at the Wakarusa location.
At a July 6 investor webinar, Lisle, Ill.-based Navistar International Corp. announced that it will introduce its next generation clean engine solution, In-Cylinder Technology Plus (ICT+), to meet 2010 U.S. Environmental Protection Agency (EPA) emissions regulations, the global truck and engine builder stated in a release today (July 19) to RVBUSINESS.com.
That announcement provided an update on ongoing discussions with the Environmental Protection Agency (EPA) and the California Air Resource Board (CARB) and outlined Navistar’s commitment to phasing in its new line of engines beginning in 2013, according to the release from Bill Schumacher, vice president of marketing for the company’s Monaco RV LLC subsidiary.
So, what does this mean for the company’s RV business?
“All MaxxForce RV engines in service and currently being built by Navistar are EPA-compliant today and will be compliant for the foreseeable future,” the company reports. “Navistar’s MaxxForce diesel engines deliver powerful, smooth and reliable operations proven not only in the RV industry but also in mission-critical military vehicles, over-the-road trucks, and school buses.
“The company’s ICT+ announcement has no immediate impact on its fully EPA-compliant MaxxForce 7 and MaxxForce 10 engines, which are used in Monaco and Holiday Rambler RVs,” the release continues. “The company’s RVs continue to set Monaco and Holiday Rambler apart with unique aerodynamic styling, advanced cockpit ergonomics, and fully integrated development and manufacturing of the Roadmaster chassis, MaxxForce engine and house. Longer-term, the ICT+ solution puts Navistar on the path to delivering the world’s cleanest and most fuel efficient diesel engine.”
Monaco RV LLC, a subsidiary of Navistar International Corp., announced the addition of Alliance Coach in Wildwood, Fla., as the company’s first Platinum Sales and Service Center.
According to a press release, Alliance Coach expands Monaco RV service capabilities in the Southeast region and complements its dedicated regional service locations in Wakarusa, Ind., and Coburg, Ore.
“The Platinum Sales and Service Center is an elite designation from Monaco RV, which Alliance is the first to achieve,” said Bill Osborne, president of Lisle, Ill.-based Monaco. “This designation reflects Monaco RV’s long-term commitment to providing our customers nationwide with superior product support.”
Alliance Coach Platinum Sales and Service Center offers special features, including:
• Exclusive sales and servicing of Monaco RV brand products.
• An extensive Monaco RV parts offering.
• An on-site Monaco RV-only campground.
• Concierge RV storage.
Alliance Coach offers an expansive 65-bay service center that is staffed by RVIA-certified factory technicians who have years of experience working on Monaco products, according to Osborne.
Navistar International Corp. today (Dec. 20) announced strong fourth quarter and full-year earnings performance reflecting the company’s continued execution of its strategy. Drivers of this performance included higher revenues and improved margins in its core North America truck business; sustained military sales; and an engine business that returned to profitability in the second half of the year. The company also saw revenues from outside of North America grow to more than $3 billion, as well as ongoing benefits from its engineering integration.
“We are pleased that we have finished the year strong and delivered solid fourth quarter results across all segments,” said Daniel C. Ustian, Navistar chairman, president and chief executive officer. “Not only did we deliver on 2011 commitments, we continued to invest in our strategy and set the foundation for a strong 2012.”
Reported net income for the fourth quarter, ended Oct. 31, was $255 million, equal to $3.48 diluted earnings per share, versus a year-ago net income of $44 million, equal to $0.61 diluted earnings per share. Adjusted net income for the fourth quarter 2011 was $247 million, or $3.37 diluted earnings per share.
Net income for fiscal year 2011 was $1.7 billion, equal to $22.64 diluted earnings per share, versus net income for fiscal 2010 of $223 million, equal to $3.05 diluted earnings per share. Adjusted net income was $402 million, or $5.28 diluted earnings per share. Adjustments impacting both the fourth quarter and fiscal year 2011 include the net impact of an income tax valuation allowance release, costs associated with the restructuring of North American manufacturing operations including Monaco RV LLC and Workhorse Custom Chassis Corp., along with engineering integration and the impact of the Medicare Part D court ruling.
Revenue for the fourth quarter rose 28% to $4.32 billion compared with $3.37 billion in the prior-year period. For the full year, sales were nearly $14 billion versus $12.14 billion the previous year.
In the fourth quarter, the company saw increases in worldwide unit chargeouts in both its traditional North American and global businesses while maintaining a strong market share position. The company purchased 2.7 million shares of its stock in the fourth quarter and ended the year with a manufacturing cash balance of $1.2 billion. Navistar is on track to complete the full $175 million stock repurchase program in early 2012.
“We expect the industry to continue its steady recovery,” said Ustian. “We will continue to leverage our market leading North American businesses, invest in new products and expand further into global markets, while effectively controlling our costs.”
For the complete report click here.
Monaco RV LLC announced the Oct. 3 opening of an Indiana service center across the street from its Wakarusa manufacturing facility on Ward Street.
According to a press release, the expansive 14-bay facility will service all Monaco brand products and be staffed by industry-certified factory technicians.
Monaco said the technicians have years of experience working on the company’s products, noting, “Their expertise and familiarity of the products will make for efficient, comprehensive and timely service appointments for customers.”
The facility will also have an accessible full-body paint booth for all paint repairs and touch-up work.
To coincide with its grand opening and welcome back customers, the service center will offer a special introductory labor rate of $90, good until April 1, 2012.
The center will be open Monday through Friday from 7:30 a.m. to 4:00 p.m. Appointments can be made by calling 877-466-6226 (877-4MONACO).
Monaco RV LLC, a Navistar company, is a manufacturer of motorized and towable recreational vehicles. Headquartered in Coburg, Ore., with substantial manufacturing facilities in Indiana, Monaco RV is dedicated to quality and service and offers innovative RVs designed to meet the needs of a broad range of customers with varied interests. For additional information about Monaco RV, LLC please visit www.monacorv.com.
Monaco RV LLC, manufacturer of motorized and towable recreational vehicles, is preparing to showcase the breadth of its product offering at Elkhart County’s 4th Annual Open House September 19-22. Monaco RV will showcase its “Next Generation of RVs” at a display a few minutes south of the RV/MH Hall of Fame, at the intersection of C.R. 17 and U.S. 20.
Monaco will display nearly 50 different product offerings from its diverse portfolio of brands covering nearly every segment of the market. On display will be: Monaco brand diesel, gas, Class A and B motorhomes; Holiday Rambler diesel, gas, Class A, B and C motorhomes; Holiday Rambler travel trailers and fifth-wheels; R-Vision travel trailers and fifth-wheels; and Bison horse trailers with living quarters.
The display will be open Monday through Thursday from 9 a.m. to 6 p.m., and lunch will be served daily from 11 a.m. to 1 p.m. Monaco RV will also have sales and management personnel available to provide information, offer demonstrations and answer questions.
“We are excited to be able to bring our ‘Next Generation of RVs’ to dealers who will be in the Elkhart area,” said Mike Snell, senior vice president of sales and product development. “We believe our partnership with Navistar, has brought us new technology, new engineering and superior designs that have never been seen in the RV market before. Our 2012 models are the best products we have ever offered.
“We plan to expand on these products and raise the bar even higher in the future. We will continue to focus on innovation, quality and customer service to deliver the finest, most customer appealing products to our dealer partners.”
Coburg, Ore.-based Monaco RV LLC, manufacturer of motorized and towable recreational vehicles, announced today (July 12) the hiring of Jerry Hunter as Southwest regional sales representative for the R-Vison towable brand.
According to a press release, Hunter has served for the past 18 years in the RV industry, including positions in management for a dealership, sales director for an RV publications and media marketing company and sales management for a manufacturer. Previously, Hunter logged 17 years in the auto industry.
“Jerry brings extensive product knowledge and experience in all aspects of the RV Industry,” said Jack Ferguson, West Coast sales manager for R-Vision. “His blend of wholesale, retail, marketing and management skills will be a tremendous asset when managing dealer partner relationships and sales initiatives. We are excited to have Jerry join the R-Vision team and look forward to him contributing greatly as we continue to expand our dealer base and build lightweight, quality towables.”
Hunter will be managing sales for R-Vision products in California, Arizona, Nevada, Utah and Oregon. Jerry resides in Nevada and can be reached by cell phone 702-631-8712 and at email@example.com.
Navistar Inc.’s influence was evident in Monaco RV LLC’s 2012 product rollout during the company’s Dealer Congress this week, as the world-class truck manufacturer continues to implement design, engineering and cultural changes since acquiring Coburg, Ore.-based Monaco in June of 2009.
With former Navistar board member and auto industry veteran Bill Osborne set to take over the reins on July 1, Monaco showed several 2012 motorhomes sporting a distinctive, truck-enhanced front end and grille design – first introduced a year ago on the 32-foot Vesta Class A – that creates a familial look throughout the motorized lineup.
“The things we are doing now are things we couldn’t even imagine before we became part of Navistar,” said Mike Snell, senior vice president of sales and product development, speaking during the general session of the June 20-22 event at the Gaylord Texan Resort in Grapevine, Texas. “And we are definitely doing things that no one else in the industry is doing.”
As a key example, Snell pointed to the “successful integration” of Navistar’s MaxxForce engines with Monaco RV’s Roadmaster chassis, representing the “first fully designed and integrated motorhome platform in the industry” in which engine, body and chassis are all manufactured by the same OEM.
Topping the 2012 product rollout was the debut of longer 35-foot floorplans in the diesel-powered Monaco Vesta and Holiday Rambler Trip Class A lines equipped with a second slideout, full walk-around bedroom and increased seating. Development of the new models was “designed in close conjunction with Navistar,” stated Snell.
On the gas side, Snell said the company had introduced a new entry-level coach in the Monaco LaPalma Class A line, featuring “the family design characteristics shared with the Vesta,” and a new floorplan in the Monarch Class A series offering a new bath-and-a-half layout.
Snell was quick to note that Monaco had also “recommitted” to its towable division.
“We have created an entirely separate towable division with its own product development and manufacturing team,” Snell said. “We brought in Keith Griffin and Dave Terry to head a separate management group for the towable division.”
Headlining the 2012 towable introductions was the return of R-Vision’s Trail Lite, featuring two new fifth-wheels and a travel trailer – all capable of being towed with half-ton trucks.
“Taking today’s economic times into consideration, R-Vision is going back to its roots and focusing on what made it successful – being the lightweight leader,” said Snell.
In the wood-and-aluminum sector, Monaco showed new sharply priced R-Vision Silver Creek and Holiday Rambler Traveler models offering entry-level, non-slide floorplans. “One 26-foot bunkhouse model will come fully loaded for under $10,000,” Snell noted.
Other highlights from the meeting included:
• An initiative offering Monaco parts sales online through Navistar’s parts distribution center at its home base in Chicago. “This is the first of a number of parts distribution centers where we will be shipping RV parts and accomplishing our fulfillment commitments to you,” said Snell.
• Newly introduced diesel products equipped with a first-in-class Bendix steering column that adjusts both up and down as well as offering telescoping capabilities. The column comes in through the dash, improving pedal and driver foot positions, giving motorhomes the look and feel of driving a luxury SUV.
• An integrated key system that not only starts the vehicle, but also unlocks bay doors, entry doors and other exterior access points.
• An RV savings rebate promotion designed to turn over dealers’ in-stock units with “no strings attached.”
• Significantly revamped websites to give brands a “whole new look and feel,” with the ultimate goal of providing greater product differentiation and focus on specific segments of the marketplace.