Navistar Wins Army Deal for Trucks to Be Used by Afghan Army
WARRENVILLE, Ill. March 8, 2005; The AP reported that Navistar International Corp., a maker of heavy duty trucks, said Tuesday that it won an Army contract for more than 2,700 vehicles to be used by the Afghanistan National Army.
The company received an initial order worth $61.8 million for 374 trucks as part of the three-year, $311.5 million pact to build 2,400 general transport trucks and 381 specialty vehicles. Under the deal, Navistar will also supply spare parts to support two years of scheduled maintenance.
The contract has a potential total value of $467 million, the company said.
Navistar said revenue and income from the first phase of the contract will have a minimal impact on its 2005 results and reiterated a forecast for yearly earnings of $4.60 to $5 per share on revenue of $11 billion to $11.3 billion.
That compares with the average estimate for a profit of $4.77 per share and $10.57 billion in revenue from analysts surveyed by Thomson First Call.
Navistar said it already has nine additional government contracts calling for more than 1,000 vehicles -- including trucks and buses to be used in Iraq. Those contracts are expected to generate about $100 million in revenue.