Navistar plans major fiscal restatement

Navistar International Corp., the holding company for International Truck & Engine Corp., has stated it plans to restate its financial results for fiscal years 2002 through 2004, as well as for the first nine months of fiscal 2005

Navistar International Corp., the holding company for International Truck & Engine Corp., has stated it plans to restate its financial results for fiscal years 2002 through 2004, as well as for the first nine months of fiscal 2005.

The company is also replacing Deloitte & Touche LLP with KPMG LLP as its independent auditor, subject to KPMG’s customary client acceptance procedures.

According to Bill Caton, Navistar executive vp, the need for the restatements came from an ongoing review of accounting matters that prevented the company from filing its fiscal 2005 annual report on Form 10-K and its first quarter 2006 quarterly report on Form 10-Q on time.

Even with the change of independent auditors, Caton said the company still can’t say when it may file its 2005 Form 10-K, including the prior periods on a restated basis.

Caton emphasized that the known adjustments will not affect previously reported cash flows from operations on a restated basis. “Our business continues strong and in fact, our March orders for Class 8 trucks were at record levels, totaling 10,856, compared with 6,854 units in February,” he stressed “Our medium truck orders were the highest in 30 years, and by the end of April the production rate at our Springfield plant will be 200 trucks per day and nearly the same at our Chatham [Ontario] plant.”

Caton also noted that James Blanda – currently a partner with Tatum LLC, a consulting firm and former senior vp & CFO for the Chicago Stock Exchange – is joining Navistar as interim corporate controller, subject to formal board approval.

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