<PAGE>
                                                                    Exhibit 99.1

                 Earnings Per Share -- Restated for Statement of
                     Financial Accounting Standards No. 128


     The table below  contains  earnings  per share data as  restated  under the
provisions of Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" (SFAS 128).  This data restates the  company's  selected  financial  data
included  in its Annual  Report on Form 10-K,  Item 6 for the  periods  detailed
below.

<TABLE>
<CAPTION>
                                                Fiscal Year Ended October 31,
                                       -----------------------------------------------
                                        1997       1996     1995      1994       1993
                                       ------     ------   ------    ------     ------
<S>                                     <C>       <C>       <C>      <C>       <C>
Income (loss) of continuing
  operations per common share
         Basic.......................   $1.66     $  .49    $1.83    $  .99    $ (8.63)
         Diluted.....................   $1.65     $  .49    $1.83    $  .99    $ (8.63)
Net income (loss) per common share
         Basic.......................   $1.66     $  .49    $1.83    $  .72    $(15.19)
         Diluted.....................   $1.65     $  .49    $1.83    $  .72    $(15.19)


Average shares outstanding (millions):
         Basic.......................    73.1       73.7     74.2      74.5       34.9
         Diluted.....................    73.6       73.8     74.3      74.6       34.9
</TABLE>


     The table below  presents  additional  required  disclosures  regarding the
computation  of basic and  diluted  earnings  per share  under  SFAS 128 for the
periods detailed below.

Income (loss) of continuing operations per common share was computed as follows:

<TABLE>
<CAPTION>
For the years ended October 31
(In millions)                           1997       1996      1995      1994      1993
                                       ------     ------    ------    ------    ------
<S>                                    <C>        <C>       <C>       <C>       <C>
Income (loss) of
  continuing operations..............  $  150     $   65    $  164    $  102    $ (273)
Less dividends on
  Series G Preferred stock...........      29         29        29        29        29
                                       ------     ------    ------    ------    ------
Income (loss) of
  continuing operations
  applicable to common stock
     (Basic and Diluted).............  $  121     $   36    $  135    $   73    $ (302)
                                       ======     ======    ======    ======    ======

Average shares outstanding (millions)
     Basic...........................    73.1       73.7      74.2      74.5      34.9
        Dilutive effect of
          options outstanding........      .4          -         -         -         -
        Conversion of Series D
          Preference Stock...........      .1         .1        .1        .1         -

                                       ------     ------    ------    ------    ------
      Diluted........................    73.6       73.8      74.3      74.6      34.9
                                       ======     ======    ======    ======    ======
</TABLE>

     Unexercised employee stock options to purchase shares of Navistar Common
Stock were not included in the computation of diluted shares outstanding
when the options'exercise prices were greater than the average market price
of Navistar Common Stock during the respective periods.  Additionally, the
diluted  calculation excludes the effects of the conversion of the Series G
Preferred Stock as such conversion would produce anti-dilutive results. The
dilutive effect of options outstanding and the conversion of Series D Preference
Stock were not included in 1993 diluted shares as such inclusion would produce
anti-dilutive results. Basic and diluted loss of discontinued operations per
common share in 1994 was $0.27.  Basic and diluted loss from the cumulative 
effect of changes in accounting policy per common share in 1993 was $6.56.
In January of 1998, the company repurchased approximately 3.2 million 
shares of its Class B Common Stock from the Supplemental Trust.

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