Confronted by hard economic conditions and the worst truck market since 1962, Navistar International Corp. on Wednesday (Sept. 9) reiterated the company will be profitable for its fiscal year ending Oct. 31, despite reporting a loss for the third quarter ended July 31.
“While we are lowering our guidance, we still expect to be strongly profitable at $4.95 to $5.25 per share and I am encouraged by the results of the company and our commitment to generate positive results for our shareholders during these challenging economic times,” said Daniel C. Ustian, Navistar chairman, president and CEO, in a news release. “The third quarter is traditionally our most challenging quarter, but we remain focused on the long-term success of the company. Therefore, we elected not to implement drastic short-term cost cutting actions that would have impacted our ability to deliver long-term results.”
Manufacturing segment profit was $110 million and $604 million, including the impacts of the Ford settlement, net of related charges, for the third quarter and first nine months of 2009, respectively, compared with $473 million and $881 million in the year-ago periods.
Navistar reported a net loss for the current third quarter of $12 million on $2.51 billion in revenues, compared with net income of $331 million on $3.95 billion in revenues in the third quarter a year ago.
Included in the results is the impact of the asset acquisition of certain assets of Monaco Coach Corp., which resulted in an extraordinary gain of $23 million in the third quarter. The gain is a result of the company being able to acquire the RV inventories out of bankruptcy and the effects of purchase accounting with the fair value of the acquired assets.
For the nine months ended July 31, 2009, the company demonstrated solid progress in its business strategy by delivering net income of $234 million on revenues of $8.28 billion, including the impact of the Ford settlement and related charges, compared with net income of $477 million on revenues of $10.85 billion in the same period a year ago.