Navistar plans to double in size

CHICAGO, (Dec. 17, 2003) — Navistar International Corp. — parent company of International Truck and Engine — told security analysts this week that it expects to double in size and become a profitable $15 billion company within the next eight to 11-year period.

Speaking to more than 150 security analysts and shareowners this week, Daniel C. Ustian, president and chief executive officer and newly named chairman-elect, said the goal of doubling in size is “bold and ambitious” and is tied to the company’s plan to “create a new reality.”

“Industry leading quality and disciplined cost management will be enablers for our growth, and we expect to achieve our goal through product superiority and brand strength,” Ustian said. “We plan to become a $15-billion company by increasing market share with existing products, through the introduction of new products in our current markets, as well as by finding new business opportunities in similar markets.”

According to Ustian, the company’s goal is to be profitable at all points of the next business cycle, and every cycle after that.

The company’s expansion into the military market and the company’s “competitive advantage” with diesel engine expertise that will allow it to meet 2007 emission standards without the use of expensive catalytic converters, were two factors the company attributed to future growth.

Ustian reaffirmed that the company expects United States and Canadian total truck industry retail sales volume for Class 6-8 and school buses in fiscal 2004 to total 304,500 units, up 16 per cent from the 263,400 units sold in fiscal 2003. Looking further out, the company anticipates that industry retail sales volume will increase to approximately 400,000 units in its fiscal 2005 and to approximately 425,000 units in fiscal 2006.