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                                                            EXHIBIT 11
    

                      NAVISTAR INTERNATIONAL CORPORATION
                         AND CONSOLIDATED 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 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                                  1997       1996
- ----------------------------------------------------------------------
Net income ......................................  $     15   $     22
                                                   ========   ========
Average common and common
  equivalent shares (millions):

Average common shares outstanding as adjusted
  per primary calculations (millions) ...........      74.3       73.8
Assuming conversion of Series G Preferred Stock .        .6         .6
                                                   --------   --------

Average common and dilutive common
  equivalent shares as adjusted .................      74.9       74.4
                                                   ========   ========

Income per common share assuming
  full dilution (dollars):

Net income ......................................  $   .20 #  $    .29 #
                                                   ========   ========

- ---------------

#  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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