<PAGE 1>                                         EXHIBIT 11


    
                   NAVISTAR INTERNATIONAL CORPORATION
                      AND CONSOLIDATED SUBSIDIARIES
                   ----------------------------------
        COMPUTATION OF NET INCOME PER COMMON SHARE  (UNAUDITED) 



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 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
                                                    JANUARY 31
                                                ------------------

Millions of Dollars                               1996       1995  
- -------------------------------------------------------------------
Net income ...................................  $     22   $     23
                                                ========   ========
Average Common and
  common equivalent shares (millions):

Average common shares outstanding
  as adjusted per primary calculations .......      73.8       74.5
Assuming conversion
  of Series G Preferred Stock ................        .6         .6
                                                --------   --------

Average common and dilutive
  common equivalent shares as adjusted .......      74.4       75.1
                                                ========   ========

Net income per common share assuming
  full dilution (dollars):

Net income ...................................  $    .29 # $    .31 #
                                                ========   ========
- ---------------


#  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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