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                                                    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 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     1997       1996        1997       1996  
- ---------------------------------------------------------------
                                           

Net income .......   $     30   $     26    $     45   $     48
                     ========   ========    ========   ========
Average Common
  and common
  equivalent
  shares
  (millions):

Average common
  shares
  outstanding
  as adjusted
  per primary
  calculations
  (millions) .....       73.7       73.8       73.7       73.8
Assuming conversion
  of Series G
  Preferred Stock.         .6         .6         .6         .6
                     --------   --------   --------   --------
Average common
  and dilutive
  common
  equivalent
  shares as
  adjusted ......        74.3       74.4       74.3       74.4
                     ========   ========   ========   ========
Income per common
  share assuming
  full dilution
  (dollars):

Net income ......   $    .40 # $    .36 # $    .60 # $    .65 #
                    ========   ========   ========   ========
- ---------------
<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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