International Truck & Engine Corp. lost $4 million in its second fiscal quarter on revenues of $1.7 billion, a major reversal from the $3 million it earned on revenues of $1.8 billion in the same period last year.
The company added that for the first six months of fiscal 2002, it lost $60 million on $3.2 billion in revenues. That's compared to losses of $32 million on $3.3 billion in revenues over the first six months of 2001.
International chairman & CEO John Horne said the company's return to profitability was hindered by continued weakness in demand for Class 6 and 7 medium-duty trucks and buses. Warrenville, IL-based International lowered its forecast for medium trucks to 101,500 units this year, including 79,000 Class 6-7 trucks, down from a previous forecast of 112,500 units, with estimated sales of 87,500 Class 6-7 trucks.
"The current downturn, which has been the worst in memory, has impacted all market segments, and we have again adjusted our forecast for total industry volume in fiscal 2002," Horne said.
However, International's forecast for Class 8 heavy truck volume is much brighter. It raised its sales projections by 12,000 units for a total estimate of 156,000 units to be sold this year. However, Horne noted that such a sales increase would largely reflect fleets "pre-buying" trucks before new emissions standards go into effect October 1.
"The recent increase in industry orders for heavy trucks is being driven both by so called pre-buying in advance of the new emissions standards for big-bore engines and demand strengthened by the economy," Horne said.