CHICAGO, Ill. - Navistar International Corp. is taking a pre-tax charge against earnings of about US $300 million in the fourth quarter as it restructures operations and prepares for the launch of a s...
CHICAGO, Ill. – Navistar International Corp. is taking a pre-tax charge against earnings of about US $300 million in the fourth quarter as it restructures operations and prepares for the launch of a series of new products.
Navistar said the charge will include the costs associated with the sale of an undisclosed number of company-owned dealerships, as well as the elimination of about 1,100 white collar and contract positions. It will also include terminating some office leases.
The cuts are due to the softening new truck market, Navistar said.
The restructuring charge also includes the launch of new medium truck and diesel engine lines, and the losses on equipment and inventory that will be made obsolete as a result.
The changes will increase the company’s short-term cash flow by as much as US $60 million and strengthen future earnings potential,” said the company. In February the company plans to unveil its much-ballyhooed new high-performance medium-duty truck line.
“The line, highlighted by a redesigned cab manufactured at a state-of-the-art, highly automated facility, represents the first completely new line of International vehicles in 20 years,” the company added. n
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