Navistar International Corporation (NYSE:NAV) Q3 2019 Earnings Conference Call - Final Transcript
Sep 04, 2019 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to the Navistar Third Quarter 2019 Earnings Results Conference Call. [Operator Instructions]
I would now like to introduce your host for today's conference, Mr. Marty Ketelaar, Vice President of Investor Relations. Sir, you may begin.
Thank you, Daniel. Good morning, everyone, and thanks for joining us for Navistar's Third Quarter 2019 Conference Call. Today, we will discuss the financial performance of Navistar International Corporation for the fiscal period ended July 31, 2019. With me today are Troy Clarke, our Chairman, President and Chief Executive Officer; Walter Borst, our Executive Vice President and Chief Financial Officer; and Persio Lisboa, Executive Vice President and Chief Operating Officer. After concluding our prepared remarks, we'll take questions from participants.
Before we begin, I'd like to cover a few items. A copy of this morning's press release and the presentation slides has been posted to the Investor Relations page of our website for reference. The non-GAAP financial measures discussed in this call are reconciled to the U.S. GAAP equivalent and can be found in the press release that we issued this morning as well as the appendix of the presentation slide deck.
Today's earnings press release, investor presentation and our prepared remarks may include forward-looking statements about our expectations for future industry and financial performance, and the company expressly disclaims any obligation to update these statements. Actual results could differ materially from those suggested by our comments made here. For additional information concerning factors that could cause actual results to differ materially from those included in today's presentation, please refer to our most recent SEC filings. We would also refer you to our safe harbor statement and other cautionary notes disclaimer presented in today's material for more information on the subject.
With that, I'll turn the call over to Troy Clarke for opening comments. Troy?
Okay. Hi, thanks, Marty, and good morning, and welcome to Navistar's third quarter earnings call. All over with few high level thoughts on the quarter and the industry and Walter will walk you through more details on the company's financial performance and outlook for the rest of the year. We delivered another strong quarter, total revenues grew 17% to over $3 billion, adjusted EBITDA grew 22% and adjusted net income increased 55%. The growth came from the truck segment, where volumes rose 45% year-over-year. Retail market share continues to grow year-over-year as well. In the third quarter Class 8 share grew 1.6 points to 13.9% and medium Class 6/7 share rose 4.9 points to 26.8%.
From an industry perspective, the U.S. economy is moderating, a number of key economic indicators remain above their long run averages, but they are trending lower. U.S. GDP is softening and is expected to be around 2% for the balance of the year. The 2% threshold is important to us as the industry tends to add capacity when GDP increases more than 2% annually.
The ISM Manufacturing Index, something we also follow, also continues to trend lower and it's