NAVISTAR REPORTS SECOND QUARTER FINANCIAL RESULTS
NAVISTAR REPORTS SECOND QUARTER FINANCIAL RESULTS CHICAGO, May 21 /PRNewswire/ -- Navistar International Corp.
(NYSE: NAV) today reported a net loss of $35 million, or 17 cents per common share, for the second quarter of fiscal 1992, ended April 30. This compares with a net loss of $29 million, or 15 cents per common share, for the second quarter of 1991.
Consolidated sales and revenues from the company's manufacturing and financial services operations totalled $914 million, a decline of three percent from the $940 million reported for the second quarter of fiscal 1991. Navistar truck shipments totalled 17,500 units in the second quarter of fiscal 1992, down 17 percent from the 21,200 units for the same period a year ago, principally because of lower demand for school bus chassis. Shipments of mid-range diesel engines to original equipment manufacturers for the second quarter increased 65 percent from a year ago, reflecting higher retail demand for diesel-powered trucks and vans that use these engines, including increased shipments to Dina Camiones, the market share leader for medium and heavy trucks in Mexico. Sales of replacement parts in the second quarter of fiscal 1992 increased nine percent over last year's levels. For the first half of fiscal 1992, Navistar reported a net loss of $67 million, or 32 cents per common share, from consolidated sales and revenues of $1.82 billion. This compares with a net loss of $67 million, or 33 cents per common share, from consolidated sales and revenues of $1.78 billion last year. Industry retail sales of medium and heavy trucks in North America totalled 112,800 units for the first half of fiscal 1992, slightly less than the 113,700 units sold in the same period last year. Navistar maintained its position as the sales leader in the combined North American retail market for medium and heavy trucks with a 26.3 percent market share for the first half of fiscal 1992, down from 29.3 percent for the first half of fiscal 1991. James C. Cotting, Navistar's chairman and chief executive officer, said the decline in market share resulted primarily from the mix of business during the first half of the year. Demand for school buses, a segment of the market where Navistar has a dominant share position, dropped sharply. Some major fleets, Navistar's traditional customers, are deferring purchases. In addition, industry retail deliveries included an unusually large number of gas-powered units. Navistar produces only diesel-powered vehicles. "While there has been clear, but selective, improvement in heavy truck demand," Cotting said, "we have not seen as yet the same signs of recovery in the market for medium trucks and school buses. Demand for medium trucks remains flat, while demand for school buses is down, primarily because budget constraints are causing municipalities to delay buying decisions." The company's order backlogs for heavy trucks increased 41 percent from year ago levels. Effective May 4, Navistar increased production schedules at its Chatham, Ontario Assembly Plant, which assembles premium conventional heavy trucks, from 33 to 41 units a day. Order backlogs for medium trucks and buses declined 14 percent from last year's levels. Navistar continues to project that industry demand for medium trucks and buses will total approximately 118,000 units in fiscal 1992, about one percent below last fiscal year's level. The company forecasts a nine percent increase in industry demand for heavy trucks to be approximately 119,000 units. Navistar expects its shipments of mid- range diesel engines to original equipment manufacturers to increase 22 percent in 1992, and sales of truck and engine replacement parts to grow 5 percent over 1991 levels. Cotting said that margins improved slightly over the first half of fiscal 1991 principally as a result of cost reduction programs. However, he also noted that the continuing high levels of expense associated with health care, pension and insurance benefits for active and retired employees continue to affect earnings. Navistar has made it a priority to address its health care cost issue during 1992, and Cotting said that the company is nearing the end of the analytical phase of this project. Based on current market outlook, the company projects third quarter consolidated sales and revenues at about the same level as the second quarter. At current demand levels, the company expects to report a loss for the third quarter. NAVISTAR INTERNATIONAL CORP. Financial Highlights (millions of dollars, except per share data) Periods ended Three months Six months April 30 1992 1991 1992 1991 Sales and Revenues: Manufacturing $ 871 $ 893 $1,719 $1,684 Financial Services 43 47 97 98 Total $ 914 $ 940 $1,816 $1,782 Net Loss $ (35) $ (29) $ (67) $ (67) Net Income (Loss) Per Common Share $ (.17) $ (.15) $ (.32) $ (.33) Average Common and Dilutive Common Equivalent Shares Outstanding (millions) 252 251 252 251 As of April 30 1992 1991 Consolidated: Assets $3,481 $3,610 Total Debt $1,190 $1,273 Shareowners' Equity $ 494 $ 733 Manufacturing: Assets $2,211 $2,268 Short-Term Debt $ 5 $ 5 Long-Term Debt $ 143 $ 149 Shareowners' Equity $ 494 $ 733 Capitalization (Long-Term Debt and Shareowners' Equity) $ 637 $ 882 Long-Term Debt as a percentage of Total Capitalization (in percentages) 22 17 Financial Services: Assets $1,509 $1,606 Total Debt $1,042 $1,119 Shareowner's Equity $ 235 $ 247 -0- 5/21/92 /CONTACT: Mary Moster of Navistar International, 312-836-3240/ (NAV) CO: Navistar International Corp. ST: Illinois IN: SU: ERN
SH -- NY015 -- 2647 05/21/92 08:54 EDT
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|Date:||May 21, 1992|
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