October 8, 2013
According to a filing submitted to the Securities and Exchange Commission (SEC) Monday, Navistar says it received nearly 5,900 Class 6-8 truck orders in September – the highest order receipt month since December 2011.
The company says orders for the month included more than 2,100 Class 6 and 7 trucks with the Cummins ISB 6.7 liter engine, with the biggest push coming mostly from orders of its DuraStar truck, powered by the ISB, which are set to be delivered in December.
“September orders marked Navistar’s highest monthly order intake for Class 6/7 vehicles in almost two years, which strengthens our belief that the ISB will be the catalyst for improving our medium-duty business,” says Bill Kozek, Navistar president, North America Truck and Parts. “With more than 2,100 orders in the first 30 days, we’re optimistic this will be a winning combination in the marketplace.”
Navistar estimated its Class 6 and 7 order share at 31.7 percent for September, up from 18.8 percent in August.
“We are also pleased with our Class 8 order performance in September,” Kozek adds. “For the last five months, we have seen a positive trend in (Class 8) orders, driven by our new product launches and quality improvements.”
For Class 8, order share was an estimated 17.4 percent for September, up from 16.6 percent in August.
The company says it has received more than 11,500 orders for Cummins ISX engines since Dec. 1, 2012, and more than 6,000 orders for MaxxForce 13 engines with SCR since March 1, 2013.
The SEC filing, executed by Navistar Chief Financial Officer Walter Borst, was part of Navistar’s plans to issue $200 million of senior subordinated convertible notes due 2018. The notes have been priced to pay 4.5 percent and the company says it will grant the initial purchasers an option to purchase up to an additional $30 million of convertible notes.
The company says it intends to use the proceeds from the offering, together with$270 million of intercompany borrowings from its financing subsidiary, for general corporate purposes, including funding capital expenditures and repurchases of a portion of its outstanding 3 percent senior subordinated convertible notes.
Monday, Standard and Poors lowered its its long-term corporate credit rating on Navistar International Corp. from “B-” to “CCC+”, citing doubt about the company’s ability to reach its marketshare goal of 18 percent, and declines in the market globally.