Navistar International expects to double in size over the next decade or so as it vows to become solidly profitable no matter what the overall industry is experiencing, Daniel C Ustian, president and chief executive officer, said.
Newly named chairman-elect Ustian said the goal of doubling in size is "bold and ambitious" and is tied to the company's plan to "create a new reality."
"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," said Ustian. He expects the company to reach that goal at the end of the next industry cycle, about eight to 11 years from now.
"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," said Ustian.
The company's goal is to be "profitable at all points of the next cycle, and every cycle after that," according to Ustian. He cited two examples of the "new reality": the expansion opportunity 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.
Navistar returned to profitability in the second half of fiscal 2003 after six quarters of losses. For its fiscal year ended Oct 31, 2003, Navistar recorded sales and revenues of $7.3 billion, up from $6.8 billion a year earlier and below the record $8.6 billion achieved in fiscal 1999.
