Navistar International Corp. said it was profitable in the three- and six-month periods ended April 30, 2004, adding improvements and cost reduction measures place the company on track for strong profits for the full year.

The company said it earned $41 million in the three months ended April 30, 2004, compared with a net loss of ($14) million in the same period a year earlier.
For the first six months of fiscal 2004, Navistar reported net income of $18 million, compared with a loss of ($113) million in the first six months a year ago. Consolidated first-half sales and revenues amounted to $4.2 billion, compared with $3.4 billion in the first six months of 2003.
Daniel C. Ustian, Navistar chairman, president and chief executive officer, said the recent economic improvement and upsurge in new truck orders is consistent with what the company said in February when it raised its industry retail sales volume 8%. He reaffirmed the outlook that a total of 328,500 Class 6-8 trucks and school buses will be sold in the United States and Canada in the fiscal year ending October 31, 2004.
"Each consecutive month of strong order and retail delivery is raising confidence in the economic recovery," Ustian said. "Our Class 8 market share in the second quarter increased to 18.6%, the highest since the third quarter of 1998. Recovery in the heavy truck sector is spread across our whole customer base and indications are that current demand levels for heavy trucks will continue. While some of the orders that have pushed the market in recent months are for delivery beyond our current fiscal year, the recent increase in industry production is a positive sign that customers are taking deliveries now to replace vehicles and are looking to expand their fleets."
The recovery in medium truck orders has been more moderate, but has been going on for a longer period of time, Ustian said.
"We are very comfortable with the current balance between orders and deliveries for the Class 6-7 market, where we are the strong market leader," Ustian said. "However, our dealer inventories are low for current market conditions and we have the potential to increase dealer inventories in the second half of the year."
According to Ustian, the return to profitability in the second quarter was achieved in a challenging environment as the company continues along the path of reducing vehicle costs by $1,600 per unit in 2004.
Navistar International Corp. 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.
Additional information is available at www.nav-international.com .