<PAGE 1>
                                                                 Exhibit 11

                         NAVISTAR INTERNATIONAL CORPORATION
                                 AND SUBSIDIARIES


                     COMPUTATION OF NET INCOME PER COMMON SHARE


A.   Primary:  See the Statement of Income of this Form 10-Q.

B.   Full Dilution:  Net income 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 is divided by the 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.



                                       Three Months Ended        Six Months Ended
                                             April 30                April 30
                                       ------------------      --------------------
Millions of dollars                      1995       1994          1995       1994
- -----------------------------------------------------------------------------------
                                                               
Net income ........................... $     46   $     23      $     69   $     39
                                       ========   ========      ========   ========

Average common and common
  equivalent shares (millions):

Average common shares outstanding
  as adjusted per primary calculation.     74.4       74.6          74.4       74.7
Assuming conversion of Series G ......       .6         .6            .6         .6
                                       --------   --------      --------   --------
Average common and dilutive common
  equivalent shares as adjusted ......     75.0       75.2          75.0       75.3
                                       ========   ========      ========   ========
Income per common share assuming
  full dilution (dollars):

Net income ........................... $   .62  # $    .31 #    $    .92 # $    .52 #
                                       ========   ========      ========   ========

- ----------------
<FN>
#  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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