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NAVISTAR REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR 1993

 CHICAGO, Dec. 2 /PRNewswire/ -- Navistar International Corp. (NYSE: NAV) today reported net income of $22 million, or $.28 per common share, for the fourth quarter of its fiscal year ended Oct. 31, 1993. This compares with a loss of $30 million, or $1.46 per common share for the same period in 1992, which included $23 million of expense related to a voluntary vehicle recall.
 Fourth quarter consolidated sales and revenues of $1.3 billion were 14 percent higher than the same period a year ago. Medium and heavy truck shipments increased 13 percent from the prior year, reflecting improvement in North American industry retail sales of heavy and medium trucks.
 Shipments of mid-range diesel engines to original equipment manufacturers were 18 percent higher than the same quarter of 1992, reflecting consumer demand for the diesel-powered light trucks and vans that use this engine.
 Service parts sales increased 11 percent from the fourth quarter of 1992.
 "The improvement in year-over-year operating performance is the result of increased demand across the board in all of our businesses and reduced retiree health care and life insurance benefit costs," said James C. Cotting, chairman and chief executive officer.
 For full fiscal year 1993, the company reported a net loss of $501 million, or $15.19 per common share. The loss includes a previously reported one-time non-cash charge for implementation of new postretirement health care and life insurance benefit plans and the cumulative effect of changes in accounting policy. This compares with a net loss of $212 million, or $9.55 per common share, for fiscal 1992, which included a $65 million charge to discontinued operations.
 Excluding one-time charges, Navistar reported pretax income of $72 million for 1993 compared with a pretax loss of continuing operations of $145 million, a year ago.
 In addition to maintaining its market share leadership in the combined North American market for medium and heavy trucks, Cotting said the company took several significant steps during 1993 to lay the groundwork for improved financial performance.
 He noted, "We reached agreement with retirees and employees to reduce the company's liability and cost of retiree health care and life insurance benefits; improved our operating cost performance; completed a highly successful offering of common stock, which realized net proceeds of $492 million; and pre-funded $300 million of remaining retiree benefit liability."
 Consolidated sales and revenues from the company's manufacturing and financial services operations totaled $4.694 billion in 1993, up 21 percent from the $3.871 billion reported in 1992.
 Navistar's full-year shipments of medium and heavy trucks and school bus chassis in fiscal 1993 totaled 87,200 units, an increase of 19 percent from the 73,200 units shipped in 1992.
 The company's shipments of mid-range diesel engines to original equipment manufacturers were a record 118,200 units, up 21 percent from 1992 levels, reflecting a continued increase in consumer demand for diesel-powered pick-up trucks and vans that use these engines.
 Sales of service parts increased 11 percent in 1993 over 1992.
 "Looking ahead," said Cotting, "we anticipate continued moderate growth in the North American economy." He said the company projects 1994 North American medium truck and school bus chassis demand to increase 11 percent over 1993 to 136,000 units. Heavy truck demand for 1994 is projected at 160,000 units, approximately the same as 1993. The company's diesel engine sales to original equipment manufacturers in 1994 are expected to remain constant with 1993 levels.
 Navistar is the North American market share leader in medium and heavy trucks and school bus chassis, and is a worldwide leader in the production of mid-range diesel engines.
 NAVISTAR INTERNATIONAL CORP. AND CONSOLIDATED SUBSIDIARIES
 FINANCIAL SUMMARY
 (Millions of dollars, except per share data)
 THREE MONTHS ENDED TWELVE MONTHS ENDED
 OCT. 31 OCT. 31
 1993 1992 1993 1992
 Sales and Revenues:
 Manufacturing $1,258 $1,096 $4,510 $3,685
 Financial Services 42 43 184 186
 Total $1,300 $1,139 $4,694 $3,871
 Income (Loss):
 Before Supplemental Trust
 contribution and
 taxes $ 31 $ (30) $ 72 $ (145)
 Supplemental Trust
 contrib. - - (513) -
 Income tax benefit
 (expense) (9) - 168 (2)
 Continuing operations 22 (30) (273) (147)
 Discontinued operations - - - (65)
 Cumulative effect of
 changes in
 accounting policy - - (228) -
 Net Income (Loss) $ 22 $ (30) $ (501) $(212)
 Income (Loss) Per Common Share
 Continuing operations $ .28 $(1.46) $(8.63) $(6.97)
 Discontinued
 operations - - - (2.58)
 Cumulative effect of
 changes in
 accounting policy - - (6.56) -
 Net Loss Per Common
 Share $ .28 $(1.46) $(15.19) $(9.55)
 Average Common and Dilutive
 Common Equivalent Shares
 Outstanding
 (millions) 54.0 25.5 34.9 25.3
 As of Oct. 31
 Consolidated: 1993 1992
 Assets $5,060 $3,627
 Total Debt $1,374 $1,405
 Shareowners' Equity $ 775 $ 338
 Manufacturing:
 Assets $3,645 $2,208
 Short-Term Debt $ 25 $ 15
 Long-Term Debt $ 150 $ 172
 Shareowners' Equity $ 775 $ 338
 Capitalization (Long-term Debt &
 Shareowners' Equity) $ 925 $ 510
 Long-Term Debt as a % of Total Capitalization 16% 34%
 Financial Services:
 Assets $1,672 $1,659
 Total Debt $1,199 $1,218
 Shareowner's Equity $ 241 $ 240
 Capital Expenditures $ 110 $ 55
 Research and Development Expenditures $ 95 $ 90
 -0- 12/2/93
 /CONTACT: Maril G. MacDonald of Navistar, 312-836-3240/
 (NAV)


CO: Navistar International Corp. ST: Illinois IN: AUT TRN SU: ERN

JG-PS -- NY050 -- 9763 12/02/93 11:27 EST
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Date:Dec 2, 1993
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