Navistar International Corp. reported a loss from continuing operations of $12 million for the three months ended April 30, 2003, compared with a loss of $2 million a year earlier.

Consolidated sales and revenues from manufacturing and financial services operations for the second quarter of 2003 totaled $1.9 billion, compared with the $1.7 billion reported in the second quarter of 2002.
For the first six months of fiscal 2003, Navistar reported a loss from continuing operations of $110 million, compared with a loss of $55 million in the first six months of fiscal 2002. Consolidated first half sales and revenues amounted to $3.4 billion, compared with $3.1 billion in the first six months of 2002.
Daniel C. Ustian, Navistar president and chief executive officer, said, "The economic environment during the first half of the company's fiscal year was difficult and uncertain, but we continue to expect an improved market in the second half of the year.
"We still expect a third quarter profit in the range of 20 to 30 cents per share due to increased truck shipments, continued cost reductions and income from financial services," Ustian said. "Assuming that our industry forecast materializes, our goal is for the fourth quarter -- historically our best quarter -- to bring us to modest profitability for the year. We continue to focus our efforts on reducing our cost structure and returning to profitability."
Turning to the future, Ustian said that the company has increased market share across the board -- medium, heavy, severe service and school buses over full year fiscal 2002 figures.
"We expect to improve market share profitably," Ustian said. He added that pricing has improved over 2002 levels, but it has been mostly offset by increases in material costs, primarily related to emissions compliance on Class 8 engines.
Ustian said medium truck industry demand continues to run below expectations. Because of this, the company has lowered its North American industry forecast for Class 6-7 trucks to 77,300 units, down from the previous forecast of 82,000, but still 6% ahead of fiscal 2002 volume. The forecast for heavy volume (Class 8) is unchanged at 156,000 units as is school bus volume at 27,500 units.
"The continued softness in the Class 6-7 market makes the earnings situation for the year more challenging, but the leading indicators appear to have stabilized," Ustian said. "Continued improvement in leading indicators signal more consistent ordering patterns. Despite soft market conditions, we have not wavered from our objective of profitability for the year and continue to implement cost improvements associated with our initial $100 million target."
Worldwide shipments of International brand medium and heavy trucks and school buses during the second quarter totaled 21,400 units, compared with 18,700 units in the first quarter this year and 20,800 units in the second quarter of 2002.
Shipments of mid-range diesel engines to other original equipment manufacturers during the quarter totaled 95,800 units, compared with 63,300 units in the first quarter and 78,900 units in the second quarter of 2002.
Navistar International Corp. 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.