Navistar’s 2nd Quarter Revenues, Earnings Plummet

May 16, 2001
Truck and engine manufacturer Navistar International Corp. saw its second-quarter 2001 earnings plummet to $3 million, compared with $98 million in the same quarter last year. Consolidated sales and revenues from manufacturing and financial services operations also dropped for the second quarter of 2001, reaching $1.8 billion, down from $2.4 billion in the second quarter of 2000. However, Navistar

Truck and engine manufacturer Navistar International Corp. saw its second-quarter 2001 earnings plummet to $3 million, compared with $98 million in the same quarter last year.

Consolidated sales and revenues from manufacturing and financial services operations also dropped for the second quarter of 2001, reaching $1.8 billion, down from $2.4 billion in the second quarter of 2000.

However, Navistar said its manufacturing gross margin for the second quarter actually increased, climbing to 13.9% from 11% in the first quarter. Yet that was still below the gross margin of 18% recorded in the second quarter a year ago.

Overall, for the first six months of fiscal 2001, Navistar reported a loss of $32 million, compared with $168 million in earnings in the same period last year. Consolidated sales and revenues amounted to $3.3 billion, compared with $4.6 billion in the first six months of 2000.

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, the company said.

“We continue to build for the future by balancing truck production with industry demand and managing our cash as we continue to make fundamental changes in the way we do business,” said John R. Horne, Navistar’s chairman, president & CEO. “When truck industry demand turns up, we will be well positioned with our products because our brand continues to get stronger and our productivity and cost structure continue to improve.”

About the Author

Sean Kilcarr | Editor in Chief

Sean Kilcarr is a former longtime FleetOwner senior editor who wrote for the publication from 2000 to 2018. He served as editor-in-chief from 2017 to 2018.

 

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Take Control of Your Finances: A Practical Guide for Carriers in Trucking

This guide is designed to help you navigate these challenges, featuring strategies for automation, examples of effective tools, and a real-world success story from Phoenix Cargo...

Report: The 2024-2025 State Of Heavy-Duty Repair

Fullbay's fifth annual State of Heavy-Duty Repair compiles insights from almost 1,000 experts and over 3,500 shops. If you aren't leveraging these proven data points, your competition...

Guide For Managing Maintenance

The Guide for Managing Maintenance is a comprehensive resource designed to help fleet managers improve their maintenance operations, reduce downtime, and lower overall fleet costs...

The Road Ahead: 2025 Trucking and Fleet Insights

Discover how fleet operators are impacted by challenges like driver onboarding delays and complex compliance, and the critical need for technology to boost efficiency and cut ...