News

Navistar's losses widen

May 16, 2003

Navistar International Corp. today reported a loss from continuing operations of $12 million for the quarter, compared with a loss of $2 million a year earlier. For the first six months of fiscal 2003, Navistar reported a loss from continuing operations of $110 million, compared with a loss of $55 million in the first six months of the last fiscal year. "The economic environment during the first half

Navistar International Corp. today reported a loss from continuing operations of $12 million for the quarter, compared with a loss of $2 million a year earlier.

For the first six months of fiscal 2003, Navistar reported a loss from continuing operations of $110 million, compared with a loss of $55 million in the first six months of the last fiscal year.

"The economic environment during the first half of the company's fiscal year was difficult and uncertain, but we continue to expect an improved market in the second half of the year," said president & CEO Daniel C. Ustian.

Ustain said the company expects to turn a 20 to 30 cents per share profit in this quarter because of increased truck shipments, continued cost reductions and income from financial services.

Ustian said medium truck industry demand continues to run below expectations. The company has lowered its North American industry forecast for Class 6-7 trucks to 77,300 units, down from the previous forecast of 82,000, but still 6% ahead of fiscal 2002 volume.