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.”