NAVISTAR <NAV> STILL EXPECTS HIGHER 1987 NET
Navistar International Corp chairman
Donald Lennox repeated that benefits from recapitalization are
likely to boost future earnings for fiscal 1987.
    Lennox told the annual meeting that future quarterly and
full year earnings from ongoing operations should be
"significantly above 1986 results."
    In his remarks, Lennox said management has no plans to
recommend reinstatement of the company's common stock dividend
in the foreseeable future.
    He said the outlook for the medium duty truck market
continues to point to little or no change. But recent order
receipts indicate a "firmer tone in the heavy duty truck
segment," which could result in a five to eight pct increase in
industry shipments for the full year, he said.
    After restructuring under the holding company format, the
company's present truck and engine subsidiary will be known as
Navistar International Transportation Corp. Neil Springer
currently president and chief operating officer of Navistar
International was named chairman of the new subsidiary.
    James Cotting, now vice chairman and chief financial
officer, was named to succeed Lennox as chairman and chief
executive officer of Navistar International Corp. Lennox will
retire March 31.
    Shareholders at the meeting approved a change in the
company's structure to a holding company format, to be
effective April 1.
 Reuter
