International Corporation (producer of International® brand trucks, school
buses and diesel engines) has today reported Q2 results in line with revised estimates.
They show that earnings have declined in response to slowing demand. Worldwide
shipments of International brand medium and heavy trucks and school buses during
the second quarter totalled 25,049 units, compared with 35,902 units in the second
quarter of 2000.
Consolidated sales and revenues from manufacturing and financial services operations
for the second quarter of 2001 totalled $1.8 billion, compared with the $2.4
billion reported in the second quarter of 2000. Manufacturing gross margin for
the second quarter improved to 13.9 percent from 11.0 percent in the first quarter
but was below the gross margin of 18.0 percent recorded in the second quarter
a year ago.
For the first six months of fiscal 2001, Navistar reported a loss of $32 million,
or $0.53 per diluted common share, compared with year earlier first half earnings
of $168 million, or $2.68 per diluted common share. Consolidated sales and revenues
amounted to $3.3 billion, compared with $4.6 billion in the first six months
The company reported losses in the fourth quarter last year and the first quarter
this year. In the fourth quarter last year, the company recorded an operating
profit, but a pretax $306 million restructuring charge against fourth quarter
earnings resulted in a loss for the quarter.
John R. HORNE, Navistar chairman, president and chief executive officer, reiterated
that the steps taken last year to strengthen the company and reduce costs played
an instrumental role in the return to profitability. He added, however, that
the weakness in new and used truck pricing and shipments that began nearly a
year ago continues unabated.
"We continue to build for the future by balancing truck production with industry
demand and managing our cash as we continue to make fundamental changes in the
way we do business,” Horne said. "When truck industry demand turns up, we
will be well positioned with our products because our brand continues to get
stronger and our productivity and cost structure continue to improve.”
Worldwide shipments of International brand medium and heavy trucks and school
buses during the second quarter totaled 25,049 units, compared with 19,847 units
in the first quarter and 35,902 units in the second quarter of 2000.
Shipments of mid-range diesel engines to other original equipment manufacturers
during the quarter totaled 85,284 units, up from 73,538 units in the first quarter
and 83,167 units in the second quarter of 2000.
Horne said the company would open a new bus plant in Tulsa, Oklahoma in June,
the introduction of the International High Performance Truck line continues
on target and initial production of a new generation V-8 diesel engine is set
to begin later this year.
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