Navistar International Corp., among the nation's largest commercial truck and mid-range diesel engine producers, has reported a first-quarter loss as was anticipated.
And while it forecasts a small second-quarter loss, the company said it still expects to be marginally profitable for the full year.
The company, producer of International brand trucks and diesel engines, said the loss from continuing operations for the quarter ended Jan. 31, 2003, totaled $98 million, or $1.47 per diluted common share, compared with a loss of $53 million, or $0.88 per diluted common share in the first quarter a year ago. The net loss for the quarter, including discontinued operations, amounted to $99 million, or $1.49 per diluted common share. The consensus estimate of security analysts was for a first quarter loss of $1.49 per share.
Consolidated sales and revenues from the company's manufacturing and financial services operations for the first quarter totaled $1.6 billion, compared with $1.5 billion the first quarter of 2002.
Looking ahead, John R. Horne, Navistar chairman and chief executive officer, said a small second quarter loss of 25 cents to 30 cents per diluted share is anticipated if there is a favorable resolution of negotiations with Ford Motor Co. in regard to the delay of its V-6 engine program. He emphasized the company should return to profitability in the third and fourth quarters and be profitable for the full year as the result of improved industry demand, increased truck and engine shipments, realization of fixed costs reductions and resolution of the Ford V-6 issues.
"The plans we have put in place for our previously announced cost reduction of $100 million in 2003 were on track through the first quarter," Horne said. "We have realigned our manufacturing facilities to deliver scale for focused products and have invested to make those plants the most efficient in the industry. We believe the foundation is in place to return to profitability in fiscal 2003 and in the future, to be profitable at all points in the business cycle."
On the positive side, Horne said that the Blue Turning to the 2003 outlook for new truck sales, Horne said that the company's forecast for industry demand was based on the assumption that orders for new medium and heavy trucks would improve significantly in the third and fourth quarters of fiscal 2003. He noted that leading truck industry indicators such as pricing, used truck inventories and truck tonnage appear to have stabilized. Additionally, industry orders increased significantly in January for both medium and heavy trucks. Medium truck orders had been very weak prior to January.
"The orders we received in November and December were below our expectations when we developed our estimate for Class 6-7 demand in 2003," Horne said. "We experienced a significant increase in bidding activity for medium trucks over the past few months. It was only in January that we saw a significant improvement in actual orders. This increase has encouraged us that our industry forecast for medium truck demand will be met."
Horne said the company has not changed its forecast for industry volume for the year ending Oct. 31, 2003. As previously forecast, medium truck (Class 6-7) volume is expected to increase 13% to 82,000 units, and heavy (Class 8) volume should decline 4% to 156,000 units.
Worldwide shipments of International medium and heavy trucks and school buses during the first quarter totaled 18,700 units, compared with 16,600 units in the first quarter of 2002. Class 8 shipments totaled 6,100 units, compared with 5,600 in 2002. Class 6-7 shipments totaled 7,700 units, compared with 6,800 in 2002.
Headquartered in Warrenville, Ill., Navistar International is the parent company of International Truck and Engine Corp., a leading producer of mid-range diesel engines, medium trucks, heavy trucks, severe service vehicles and a provider of parts and service sold under the International brand.
Additional information can be found on the company's web site at www.nav-international.com .
And while it forecasts a small second-quarter loss, the company said it still expects to be marginally profitable for the full year.
The company, producer of International brand trucks and diesel engines, said the loss from continuing operations for the quarter ended Jan. 31, 2003, totaled $98 million, or $1.47 per diluted common share, compared with a loss of $53 million, or $0.88 per diluted common share in the first quarter a year ago. The net loss for the quarter, including discontinued operations, amounted to $99 million, or $1.49 per diluted common share. The consensus estimate of security analysts was for a first quarter loss of $1.49 per share.
Consolidated sales and revenues from the company's manufacturing and financial services operations for the first quarter totaled $1.6 billion, compared with $1.5 billion the first quarter of 2002.
Looking ahead, John R. Horne, Navistar chairman and chief executive officer, said a small second quarter loss of 25 cents to 30 cents per diluted share is anticipated if there is a favorable resolution of negotiations with Ford Motor Co. in regard to the delay of its V-6 engine program. He emphasized the company should return to profitability in the third and fourth quarters and be profitable for the full year as the result of improved industry demand, increased truck and engine shipments, realization of fixed costs reductions and resolution of the Ford V-6 issues.
"The plans we have put in place for our previously announced cost reduction of $100 million in 2003 were on track through the first quarter," Horne said. "We have realigned our manufacturing facilities to deliver scale for focused products and have invested to make those plants the most efficient in the industry. We believe the foundation is in place to return to profitability in fiscal 2003 and in the future, to be profitable at all points in the business cycle."
On the positive side, Horne said that the Blue Turning to the 2003 outlook for new truck sales, Horne said that the company's forecast for industry demand was based on the assumption that orders for new medium and heavy trucks would improve significantly in the third and fourth quarters of fiscal 2003. He noted that leading truck industry indicators such as pricing, used truck inventories and truck tonnage appear to have stabilized. Additionally, industry orders increased significantly in January for both medium and heavy trucks. Medium truck orders had been very weak prior to January.
"The orders we received in November and December were below our expectations when we developed our estimate for Class 6-7 demand in 2003," Horne said. "We experienced a significant increase in bidding activity for medium trucks over the past few months. It was only in January that we saw a significant improvement in actual orders. This increase has encouraged us that our industry forecast for medium truck demand will be met."
Horne said the company has not changed its forecast for industry volume for the year ending Oct. 31, 2003. As previously forecast, medium truck (Class 6-7) volume is expected to increase 13% to 82,000 units, and heavy (Class 8) volume should decline 4% to 156,000 units.
Worldwide shipments of International medium and heavy trucks and school buses during the first quarter totaled 18,700 units, compared with 16,600 units in the first quarter of 2002. Class 8 shipments totaled 6,100 units, compared with 5,600 in 2002. Class 6-7 shipments totaled 7,700 units, compared with 6,800 in 2002.
Headquartered in Warrenville, Ill., Navistar International is the parent company of International Truck and Engine Corp., a leading producer of mid-range diesel engines, medium trucks, heavy trucks, severe service vehicles and a provider of parts and service sold under the International brand.
Additional information can be found on the company's web site at www.nav-international.com .
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