Navistar shows small profit in 2Q

CHICAGO (May 17, 2001) — For Navistar International Corp., the began it journey to profitability in 2001 begins with a small step.

The company yesterday said its fiscal second-quarter net income was $3 million, or 5 cents a diluted share — down 97% from $98 million, or $1.58 a share, in the year-earlier period (ending April 30).

Revenue fell 25%, to $1.79 billion US from $2.39 billion.

The company reported losses in the fourth quarter last year and the first quarter this year. In the fourth quarter last year, the company recorded an operating profit, but a pretax $306 million restructuring charge against fourth quarter earnings resulted in a loss for the quarter.

Navistar chairman, president, and CEO John R. Horne pointed out that the company continues to invest in product development and production. Navistar will open a new bus plant in Tulsa, Okla., in June, introduced the International High Performance Truck line in February, and will begin to build a new generation V-8 diesel engine later this year.

Like other U.S. truck makers, Navistar, which makes buses, commercial trucks, and diesel engines under the International brand, has struggled to deal with a sharp downturn in new and used vehicle sales.