However, that is a drop from a $188 million profit reported during the same quarter of 2018 and a net income of $340 million for that fiscal year.
Revenues reported during the fourth quarter of this year were down 16% compared to the same period last year, company officials said during a conference call to investors on Tuesday.
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In a news release, Navistar said that a large number of trucks were invoiced to customers in the fourth-quarter of last year causing an increase in profits.
The sale of Navistar Defense last December as well as lower industry demand contributed to revenues being higher during that period compared to this year, the release added.
However, overall revenue increased this year by 10% and was reported on Tuesday as $11.25 billion, according to figures released by Navistar.
“Building on the strong gains achieved over the last several years, Navistar has a clear roadmap in place for sustained growth that will set it apart from the industry,” said Troy Clarke, Navistar’s president and CEO.
The increase was led by a 26% increase in worldwide chargeouts, bringing that number to 106,500 units for the year. Chargeouts are vehicles that have been invoiced to customers.
Navistar also increased its market share in the medium-duty truck market by 27 percent, according to a new release sent by the company on Tuesday.
The Illinois-based company expects to make between $9.25 billion and $9.75 billion in revenues by the end of the next fiscal year.
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The company projects the total number of retail deliveries next year for medium-duty trucks and buses in the United States and Canada to be between 335,000 to 365,000 units. Heavy duty truck deliveries are expected to be between 210,000 and 240,000 as well.
The News-Sun reported earlier this year that the industry as a whole was building more commercial trucks than were being sold. The surplus in trucks, especially medium-duty ones, in the commercial sector, have caused companies like Navistar to reduce line production speed at plants in the United States and Mexico.
“With a proven track record of managing costs and improving operating results, Navistar is in a much better position than in the past to do well even during cyclical downturns,” said Clarke. “We are taking actions to adjust our business to current market conditions, including reducing production rates and (selling, general and administrative) expenses while restructuring our global and export operations.”
In September, a reduction to the number of trucks produced on the main line of Navistar’s Springfield plant led to 126 assembly production workers being laid off.
During the same month a nationwide strike at General Motors caused a shortage in parts at Navistar’s Springfield Plant. The strike lasted for almost six weeks and Navistar stopped production on both its Springfield assembly lines. The pause in production left about 1,400 workers at the plant temporarily out of work.
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However, both assembly lines at Navistar’s Springfield plant resumed production in the beginning of November following the end of the strike.
Navistar reported that the strike impacted its ability to deliver approximately 5,000 vehicles to customers. It also affected the company’s revenue for the fourth-quarter of this year by $140 million.
In November the company announced that it would lay off 30 more workers. Representatives of Navistar also notified local union leaders in Springfield that they were looking to reduce the number of trucks built on the plant's main line to 70 per day. That line currently produces 97 trucks per day.
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