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EXHIBIT 11
NAVISTAR INTERNATIONAL CORPORATION
AND SUBSIDIARIES
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COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE
A. Primary: See the Statement of Income (Loss) and Note 7 to the
Financial Statements contained in the Navistar International Corporation
1994 Annual Report to Shareowners incorporated herein by reference.
B. Full Dilution: Net income (loss) per common share assuming full
dilution is computed by assuming that all options and warrants which are
exercisable below market prices are assumed to be exercised, and the
proceeds applied to reduce common stock outstanding. The computations
assume that convertible preferred and preference stock are converted to
common stock. Income (loss) is divided by the weighted average number
of common shares outstanding and unconditionally issuable at the end of
each month during the period, adjusted for the net effects of the
exercise of options and warrants and the conversion of convertible
preferred and preference stocks.
YEARS ENDED OCTOBER 31
Millions of Dollars 1994 1993 1992
- -------------------------------------------------- -------- -------- --------
Income (loss) of continuing operations ........... $ 102 $ (273) $ (147)
Loss of discontinued operations .................. (20) - (65)
-------- -------- --------
Income (loss) before cumulative effect
of changes in accounting policy................. 82 (273) (212)
Cumulative effect of changes
in accounting policy ........................... - (228) -
-------- -------- --------
Net income (loss) ................................ $ 82 $ (501) $ (212)
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Average common and common equivalent shares (millions):
Average common shares outstanding as adjusted
per primary computation ........................ 74.6 34.9 25.3
Assuming conversion of Series G .................. .6 .6 .6
Assuming conversion of Series D .................. - .1 -
Assuming exercise of options and
warrants reduced by the number of
shares which could have been
purchased with the proceeds from
exercise of such options ....................... - - .1
-------- -------- --------
Average common and dilutive
common equivalent shares as adjusted ........... 75.2 35.6 26.0
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Income (loss) per common share assuming
full dilution (dollars):
Continuing operations ........................ $ 1.36 # $ (7.64)# $ (5.67)#
Discontinued operations ...................... (.27) - (2.49)#
Cumulative effect of changes in
accounting policy .......................... - (6.42)# -
-------- -------- --------
Net income (loss) ................................ $ 1.09 # $ (14.06)# $ (8.16)#
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# This calculation is submitted in accordance with Regulation
S-K item 601(b)(11) of the Securities Exchange Act, although it is
contrary to paragraph 40 of APB Opinion No. 15 because it produces
an anti-dilutive result.
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