If you are part of the freight industry or plan to get a job driving a truck, there’s good news. There are fewer heavy duty trucks for sale in Texas and the entire US because they are selling well. In fact, Navistar International Corporation reported an impressive income and profit increase for the last quarter of 2017. Here is more on the subject.
Profits are Up
According to a recent press release from PRNewswire, Navistar’ fourth-quarter income for 2017 was one hundred and thirty-five million dollars. This is a huge improvement (in things like heavy duty trucks for sale) over 2016’s fourth-quarter results which showed a net loss of thirty-four million dollars.
2017 was a better year overall than 2016 for Navistar International Corporation. In 2017, their annual profit was thirty million, and in 2016 they lost ninety-seven million dollars total.
The Importance of adjusted EBITDA
Navistar reported an adjusted EBITDA of 268 million dollars for 2107’s final quarter and for the fiscal year, 582 million dollars. The previous year was 508 million dollars. What is EBITDA? It stands for earnings before interest, taxes, depreciation, and amortization. This is basically the top line income before you deduct all of these things. It’s often used a measuring stick to see how a company is doing or to compare businesses.
So How Does This Good News Affect the Freight Industry in Texas?
In August 2017, a Wall Street Journal article reported that sales of all class 8 trucks were up 49 percent over the same period one year ago and 13 percent over the previous month. An impressive increase in heavy duty trucks for sale means that many trucking businesses are doing well and the future is looking up for Texas and the rest of the country.
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