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NAVISTAR REPORTS THIRD QUARTER 1992 FINANCIAL RESULTS

 NAVISTAR REPORTS THIRD QUARTER 1992 FINANCIAL RESULTS
 CHICAGO, Aug. 20 /PRNewswire/ -- Navistar International Corp. (NYSE: NAV) today reported a loss of $26 million, or 13 cents per common share, from continuing operations for the third quarter of fiscal 1992 ended July 31, prior to a $24 million, or 10 cents per common share, charge for a previously announced voluntary recall of school bus chassis.
 For the comparable quarter in fiscal 1991, Navistar reported a net loss of $31 million, or 15 cents per common share, from continuing operations.
 Also during the third quarter of fiscal 1992, the company recorded a $65 million charge to discontinued operations, or 26 cents per common share, for the settlement of litigation with the Pension Benefit Guaranty Corp. (PBGC).
 Consolidated sales and revenues from the company's manufacturing and financial services operations totalled $920 million, an increase of seven percent from the $861 million reported for the third quarter of fiscal 1991.
 Navistar's retail deliveries of medium and heavy trucks and school bus chassis totalled 17,600 units in the third quarter of 1992, an increase of 5 percent from the 16,700 units sold during the same period last year.
 Industry retail sales of medium and heavy trucks in North America totalled 62,600 units during the third quarter of fiscal 1992, an increase of 7 percent from last year.
 Navistar maintained its position as the sales leader in the combined North American retail market for medium and heavy trucks with a 28.1 percent market share in the third quarter, a slight decline from its 28.6 percent market share in the third quarter of 1991.
 Navistar's shipments of mid-range diesel engines to original equipment manufacturers increased 24 percent from a year ago, reflecting higher demand for diesel-powered trucks and vans that use these engines as well as increased shipments to Mexico.
 Sales of replacement parts in the third quarter of fiscal 1992 increased 10 percent over last year's levels.
 "We continue to see some signs of improvement in the market, particularly for heavy trucks," said James C. Cotting, chairman and chief executive officer. "The market for school buses remains weak."
 "Even with these modest improvements in overall industry demand," Cotting continued, "we must continue to implement our strategies for reducing costs, increasing margins and improving our flexibility to respond to customer demand."
 As a part of these efforts, Navistar announced in late July the restructuring of the health care benefits it provides its retirees. The company concurrently filed a declaratory judgment action in the U.S. District Court for the Northern District of Illinois seeking confirmation of its right to change retiree health care benefits. As part of the restructuring, the company's approximately 40,000 retirees will be enrolled in a new health care program which includes a reduced level of benefits and cost-sharing through premiums, deductibles and co-payments. The company estimates the new program will save approximately $90 million annually when fully implemented.
 "What we have sought to do with these actions is to take decisive steps toward getting Navistar's benefit cost problems behind us, ensuring our competitiveness and continued leadership in the North American truck industry, and strengthening our long-term ability to grow our business and provide an adequate return for all who have a stake in the company," Cotting said.
 In a separate announcement today, Navistar said that it had reached a settlement with the PBGC in litigation involving pension liability for Navistar's former Wisconsin Steel division. Under the terms of the settlement, valued at approximately $65 million, Navistar will pay the PBGC a combination of cash, equity and a secured note. The cash portion of the settlement is $20 million.
 For the first nine months of fiscal 1992, Navistar reported a loss of $117 million from continuing operations, or 55 cents per common share, including the $24 million, or 10 cents per common share, charge for the voluntary recall of school bus chassis. Consolidated sales and revenues totalled $2.7 billion for the first nine months. This compares with a net loss of $98 million from continuing operations, or 48 cents per common share, from consolidated sales and revenue of $2.6 billion during the first nine months of fiscal 1991.
 Because of an increase in demand for premium conventional heavy trucks, effective July 27, Navistar increased production schedules at its Chatham, Ontario Assembly Plant, which assembles these trucks, from 41 to 50 units a day.
 Based on a projection of current demand levels and the continuing pressure on margins, the company expects to report a loss for the fourth quarter.
 Navistar is the North American market share leader in medium and heavy trucks and is a worldwide leader in the production of mid-range diesel engines.
 NAVISTAR INTERNATIONAL CORP.
 FINANCIAL HIGHLIGHTS
 (Millions of dollars, except per share data)
 Three Months Ended Nine Months Ended
 July 31 July 31
 1992 1991 1992 1991
 Sales and Revenues:
 Manufacturing $ 870 $ 809 $2,589 $2,493
 Financial Services 50 52 147 150
 Total $ 920 $ 861 $2,736 $2,643
 Income (Loss):
 Continuing Operations $ (50) $ (31) $ (117) $ (98)
 Discontinued Operations (65) - (65) -
 Net Income (Loss) $ (115) $ (31) $ (182) $ (98)
 Income (Loss)
 Per Common Share
 Continuing Operations $ (.23) $ (.15) $ (.55) $ (.48)
 Discontinued Operations (.26) - (.26) -
 Net Income (Loss)
 Per Common Share $ (.49) $ (.15) $ (.81) $ (.48)
 Average Common and
 Dilutive Common
 Equivalent Shares
 Outstanding (millions) 252 251 252 251
 As of July 31 1992 1991
 Consolidated:
 Assets $3,593 $3,455
 Total Debt $1,390 $1,225
 Shareowners' Equity $ 371 $ 694
 Manufacturing:
 Assets $2,149 $2,149
 Short-Term Debt $ 9 $ 10
 Long-Term Debt $ 140 $ 144
 Shareowners' Equity $ 371 $ 694
 Capitalization
 (Long-Term Debt and Shareowners' Equity) $ 511 $ 838
 Long-Term Debt as a pct. of Total Capitalization 27 17
 Financial Services:
 Assets $1,686 $1,556
 Total Debt $1,241 $1,071
 Shareowner's Equity $ 242 $ 245
 -0- 8/20/92
 /CONTACT: Mary Moster, 312-836-3240 or, Deborah Spak, 312-836-3232, both of Navistar/
 (NAV) CO: Navistar International Corp. ST: Illinois IN: AUT SU: ERN


PS -- NY016 -- 1639 08/20/92 10:38 EDT
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