International shows sustained financial growth

WARREN, Ill. (May 25, 2004) — Navistar International said it was profitable in the three- and six-month periods ended April 30, 2004, and is 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.

Navistar chairman Dan Ustian said an improving economy and surge in new truck orders is consistent with what the company said in February when it raised its industry retail sales volume 8 per cent. He reaffirmed the projection of 328,500 Class 6-8 trucks and school buses will be sold in the United States and Canada in the fiscal year ending Oct. 31, 2004.

“Our class-8 market share in the second quarter increased to 18.6 per cent, the highest since the third quarter of 1998,” he said.

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.