Navistar International Corp. said today (June 9) second-quarter profit fell 94% as the global recession dampened demand for its commercial trucks and prompted a sharp cut in the company’s forecast for fiscal 2009, according to Market Watch.
“It is now clear that the economic recovery will take longer than had been originally expected,” said Daniel Ustian, chairman and CEO of the Warrenville, Ill.-based manufacturer.
For the three months ended April 30, Navistar reported earnings of $12 million, down from $211 million earned in the year-ago second quarter.
Earnings for the most recent quarter were reduced by $31 million as a result of costs related to a settlement with Ford Motor Co. regarding a deal for diesel engines.
Navistar said quarterly revenue fell to $2.81 billion from $3.95 billion a year ago due to fewer volume sales, particularly in the U.S. and Canada.
As for the fiscal year ending Oct. 31, Navistar lowered its earnings target to a range of $2.80 to $3.10 a share compared to its prior forecast of $5.10 to $5.60 a share. The update excludes the impact of the Ford settlement.
Including the Ford settlement, Navistar expects to earn $5.20 to $5.50 a share for the year.