Navistar International Corp (NYSE: NAV) rose after the company reported better-than-expected results for its fourth quarter.
Navistar, based in Lisle, Illinois, announced a fourth-quarter 2017 net income of $135 million, or $1.36 per diluted share, compared to a fourth quarter 2016 net loss of $34 million, or $0.42 per diluted share. Navistar reported net income of $30 million, or $0.32 per diluted share for fiscal year 2017, versus a net loss of $97 million, or $1.19 per diluted share, for fiscal year 2016.
Fourth quarter 2017 adjusted EBITDA was $268 million, which included $11 million of adjustments. Adjusted EBITDA margins increased to 10.3%. Fiscal year 2017 adjusted EBITDA was $582 million, versus $508 million adjusted EBITDA for 2016. Full-year adjusted EBITDA margins increased to 6.8%.
Navistar finished the fourth quarter 2017 with $1.1 billion in consolidated cash, cash equivalents and marketable securities including $1.0 billion in manufacturing cash, cash equivalents and marketable securities.
Said CEO Troy Clarke, "Our 2017 was a breakthrough year, as we returned to profitability and grew our market share 1.5 points.
"These results were driven by stronger sales, our steady investment in the industry's newest product lineup, early results from our strategic alliance with Volkswagen Truck & Bus and our ongoing focus on cost."
Also during the fourth quarter, Navistar and Volkswagen Truck & Bus announced their intention to converge their connected vehicle activities – OnCommand® Connection and RIO, Volkswagen Truck & Bus's digital brand. OnCommand Connection now has an industry leading 370,000 connected vehicles.
Navistar stock zoomed Tuesday by $3.31, or 7.9%, to $45.50
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