Despite continued weakness in the new and used truck markets, Navistar International Corp. expects to show a profit for its second fiscal quarter ending April 30.

John Horne, the company’s chairman, president and CEO, said that steps taken last year to strengthen the company and reduce costs played an instrumental role in the return to profitability, which started in March. Navistar lost $35 million in its first quarter. It showed an operating profit in fourth quarter last year, but a $306 million restructuring charge put it in the red.
Horne said the company continues to build for the future by focusing on cost reduction through process improvement, cash management, balancing production with industry demand, and a series of new product launches over the next two years.
“As I have said before, we have made fundamental changes in the way we do business and while we can’t control business conditions, we can control how we respond,” he said.
Second quarter earnings are scheduled to be released May 16.

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