WARRENVILLE, Ill. — Navistar enjoyed a profitable third quarter thanks in part to advances in its core business, increased military sales and improvements in its cost structure, according to the company.

“Third-quarter results showed a continuation of the company’s ability to be profitable in difficult economic conditions. Beyond strong military sales, we saw improved performance from our core businesses in truck, engine and particularly service parts,” said Daniel C. Ustian, Navistar chairman, president and CEO.

Profit for the third quarter ended July 31 totalled $137 million, while revenues for the same period totalled $3.2 billion. Net loss for the third quarter a year ago was $12 million.

“All of our businesses continue to perform well,” said Ustian. “We are encouraged by the results of the third quarter and expect to deliver full-year results toward the upper end of our earnings guidance. In addition, we are experiencing several successful product launches and are actively delivering 2010-compliant products to our customers.”

Navistar officials say the North American traditional industry demand is expected between 190,000 to 195,000 units for Navistar’s fiscal year ending Oct. 31, an increase of between 9% and 12% from fiscal 2009.

For the first nine months of fiscal 2010, profit was $184 million, compared with year-ago nine months profit of $234 million, including the favourable effects from a settlement with Ford worth $176 million.