Navistar International Corp. had a profit in the fiscal fourth-quarter as a result of cost cuts enacted because of the recession and the glut of used trucks.
Net income in the quarter, which ended October 31, was $7 million, or 11 cents a share, compared with a year-earlier loss of $105 million, or $1.77. The year-earlier results included $190 million in expenses, or about $3.18 a share, for job cuts, consolidation of administrative offices and plants, and costs of developing new vehicles and engines.
The company said its revenue fell 7% to $1.84 billion.
"Despite the tough economy and an even tougher industry climate, in August we were on track to be profitable for the year," Navistar president & CEO John R. Horne said. "However the events of September 11 further weakened the economy and hampered our ability to get materials to our manufacturing sites on time, drove up costs and even caused some customers to defer orders."
Horne cited catering companies that provide food services for the airlines and consumer goods delivery companies as two examples of customers directly affected.