Navistar International sees small third quarter profit

Navistar International Corp., the holding company for International Truck & Engine Corp., reported a small profit for its third fiscal quarter of 2001 despite a “continued industry-wide softness in demand for new trucks.” Navistar said its net income for the three months ended July 31 totaled $2 million, compared with $96 million, during the same period last year. Consolidated sales and revenues from

Navistar International Corp., the holding company for International Truck & Engine Corp., reported a small profit for its third fiscal quarter of 2001 despite a “continued industry-wide softness in demand for new trucks.”

Navistar said its net income for the three months ended July 31 totaled $2 million, compared with $96 million, during the same period last year. Consolidated sales and revenues from manufacturing and financial services operations for its third fiscal quarter of 2001 totaled $1.6 billion, compared with $1.9 billion in the same period in 2000.

John R. Horne, president & CEO of Navistar, said manufacturing gross margins rose again in the third quarter to 14.2% from 13.9% in the second quarter and 11.0% in the first quarter. Margins in the third quarter last year totaled 17.5%.

However, for the first nine months of fiscal 2001, Navistar said it lost $30 million, compared with net income of $264 million, in the first nine months of 2000. Consolidated sales and revenues for the first nine months of fiscal 2001 declined to $4.9 billion from $6.5 billion in the same period in 2000. Manufacturing gross margin for the nine months was 13.1% compared with 17.4% last year.

Worldwide shipments of International brand heavy and medium trucks and school buses during the third quarter totaled 20,600 units, compared with the 27,600 units shipped in the third quarter of 2000. Shipments of mid-range diesel engines to other original equipment manufacturers during the quarter totaled 80,200 compared with 72,200 units shipped in the third quarter of 2000. The increase in OEM engine shipments resulted from the inclusion of 9,300 engines from Maxion Motores, acquired earlier this year, said Navistar.

Horne said that the truck market in North America continues to be weak and this trend is expected to continue for at least another six to 12 months.

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