Plant won’t affect earnings guidance: Navistar
WARRENVILLE, Ill. — Keeping International’s Chatham plant open shouldn’t impact the company’s fourth quarter earnings guidance, say Navistar officials.
Daniel C. Ustian, Navistar president and CEO, said the company is pleased to have come up with a plan that meets the combined objectives of improved profitability for its heavy truck business and continued operations in Chatham. He noted the impact of the decision to keep the plant operating would result in an adjustment to the companys existing restructuring charge recorded in the fourth quarter of 2002.
He added that the company has also accelerated the sign-up period for an early retirement window program offered to certain eligible, long-service United Auto Workers union (UAW) represented employees. The purpose of the window program is to enable the company to address the changing staffing needs of the business. The expected dates for retirement under the program have not been changed, but the earlier sign-up period requires the company to account for the program in the fourth quarter of 2003.
According to Ustian, Navistar is in the process of quantifying the impact of these decisions and will disclose them with the release of its fourth quarter earnings. Neither of these decisions however is expected to impact the companys earning guidance issued in the third quarter earnings release on August 15, 2003.
These actions allow us to substantially complete our initial transformation strategy that we began in 1997, said Robert C. Lannert, vice chairman and chief financial officer.
Lannert said Navistars focus now is on execution: execution of our quality and cost improvement goals with our management team dedicated to delivering bottom-line savings and continuously improving results.
International Truck and Engine Corporation produces International brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. With the broadest distribution network in North America, the company also provides financing for customers and dealers. Additionally, through a joint venture with Ford Motor Company, the company builds medium commercial trucks and sells truck and diesel engine service parts.
Additional information is available at www.internationaldelivers.com
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