Navistar International Corp. says it has returned to profitability in its third fiscal quarter and is on track to be solidly profitable in the fourth quarter.
Net income from continuing operations for the three months ended July 31, 2003 totaled $19 million, equal to $0.26 per diluted common share, compared with a loss of $16 million or ($0.26) per diluted common share a year ago. The consensus estimate of analysts was a profit of $0.25 cents per share.
Consolidated sales and revenues from manufacturing and financial services operations for the third quarter totaled $1.9 billion, compared with $1.6 billion in the same quarter a year ago.
Daniel C. Ustian, Navistar president and chief executive officer, said that the third quarter profit was achieved despite continued softness in medium-truck shipments, but said he was encouraged by strong pickup in new medium-truck orders in July.
According to Ustian, preliminary July industry Class 6-7 medium-truck orders totaled 7,700 units -- up 37% over a year ago and the highest monthly total since August 2002. The company, which is the leader in the Class 6-7 market with year-to-date market share of 42%, recorded 3,400 orders in July, or 44% percent of the industry total.
Industry heavy truck orders in July totaled 17,200 units, the third consecutive month of solid order rates. Ustian noted that heavy truck orders are generally considered an early-cycle barometer of overall economic momentum.
"Our focus continues to be on improving our cost structure so that we can be profitable at all points of the business cycle," Ustian said. "We are pleased by the outstanding performances recorded in the third quarter by both our parts and service organization and our finance group. We anticipate we will be solidly profitable in the fourth quarter, with diluted earnings of between $0.65 and $0.75 per share from continuing operations. Despite a strong and profitable second half, based upon our current industry expectations, it will be difficult to overcome the deficit recorded in the first six months of the year."
Turning to the future, Ustian said the company looks for "solid profitability in 2004 as overall economic momentum improves."
Navistar is the parent company of International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets.
Net income from continuing operations for the three months ended July 31, 2003 totaled $19 million, equal to $0.26 per diluted common share, compared with a loss of $16 million or ($0.26) per diluted common share a year ago. The consensus estimate of analysts was a profit of $0.25 cents per share.
Consolidated sales and revenues from manufacturing and financial services operations for the third quarter totaled $1.9 billion, compared with $1.6 billion in the same quarter a year ago.
Daniel C. Ustian, Navistar president and chief executive officer, said that the third quarter profit was achieved despite continued softness in medium-truck shipments, but said he was encouraged by strong pickup in new medium-truck orders in July.
According to Ustian, preliminary July industry Class 6-7 medium-truck orders totaled 7,700 units -- up 37% over a year ago and the highest monthly total since August 2002. The company, which is the leader in the Class 6-7 market with year-to-date market share of 42%, recorded 3,400 orders in July, or 44% percent of the industry total.
Industry heavy truck orders in July totaled 17,200 units, the third consecutive month of solid order rates. Ustian noted that heavy truck orders are generally considered an early-cycle barometer of overall economic momentum.
"Our focus continues to be on improving our cost structure so that we can be profitable at all points of the business cycle," Ustian said. "We are pleased by the outstanding performances recorded in the third quarter by both our parts and service organization and our finance group. We anticipate we will be solidly profitable in the fourth quarter, with diluted earnings of between $0.65 and $0.75 per share from continuing operations. Despite a strong and profitable second half, based upon our current industry expectations, it will be difficult to overcome the deficit recorded in the first six months of the year."
Turning to the future, Ustian said the company looks for "solid profitability in 2004 as overall economic momentum improves."
Navistar is the parent company of International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets.
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