Navistar 3Q16 Earnings Call Notes

Navistar International’s (NAV) CEO Troy Clarke Q3 2016 Results

Partnership with Volkswagen

“And the most recent news is that on Tuesday we announced a wide-ranging partnership with Volkswagen Truck & Bus. This includes a strategic technology alliance, a procurement joint venture, and an equity investment in Navistar by Volkswagen Truck & Bus. This partnership will do a number of positive things for us. The technology alliance will allow us to offer customers expanded access to leading-edge products and services through collaboration on technology and the inclusion of Volkswagen Truck & Buses products and components.”

Share of products with Cummins engines

“Yes, that — yes, Jeff that’s the heavy number. It’s 60 and change and 30 and change actually on heavy. But on a medium duty, basically everything else its over 80% of our product have Cummins engines in them. And it’s just a little bit, I would say, it’s over 80%. So it’s a mid-teens with regards to in the other spaces and a 100% of our buses. Yes, a 100% of our buses, right. And that actually works into the average that I gave and so on.

Less volume than anticipated part the market part our own recovery

“No, actually we thank you very much for your time today, obviously the quarter was a less little volume than we had originally anticipated, part of that is in the market and part of it is just the fact that we continue to recover, but there are some really good times, we believe in the reception of our product by our customers. ”

Walter Borst

Truck sales down 24%

“Now let’s look a little closer at the results for our segment. Truck sales were $1.4 billion, down 24% compared to the prior year largely due to a 42% decline in Class 8 volumes, reflecting the general weakness in the industry.”