CHICAGO, Ill. — Heavy truck maker Navistar International reports that it would return to profitability in the second quarter, ending Apr. 30, despite the softness of the new truck market.
The steps taken last year to strengthen the company and reduce costs played an instrumental role in the return to profitability that began in March, noted John R. Horne, company chairman, president and chief executive officer.
The company reported losses for its last two fiscal quarters. In the fourth quarter last year, the company recorded an operating profit, but a US$306 million restructuring charge against fourth quarter earnings resulted in a loss for the quarter.
Horn said that, despite continued weakness in new-and-used truck pricing and shipments, the company should report second quarter earnings of approximately 5 U.S. cents per share.
Horne noted the company continues to build for the future by focusing on reducing costs through process improvements, management of cash, balancing production with industry demand and a series of new product launches over the next two years.
“As I have said before, we have made fundamental changes in the way we do business and while we can’t control business conditions, we can control how we respond.”
The company plans to release its earnings May 16.