Navistar Predicts Return to Profitability in Second Quarter Despite Continuing Soft Truck Market

Apr 23, 2001, 01:00 ET from Navistar International Corporation

    CHICAGO, April 23 /PRNewswire Interactive News Release/ -- Navistar
 International Corporation (NYSE:   NAV), producer of International(R) brand
 trucks, school buses and diesel engines, today reported that it would return
 to profitability in the second quarter ending April 30 despite continued soft
 industry demand for new trucks.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991207/CGTU007 )
     The company reported losses for its last two fiscal quarters.  In the
 fourth quarter last year, the company recorded an operating profit, but a
 $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,
 said the steps taken last year to strengthen the company and reduce costs
 played an instrumental role in the return to profitability that began in
 March.  He said that despite continued weakness in new and used truck pricing
 and shipments, the company should report second quarter earnings of
 approximately $0.05 cents per share.  Horne added that earnings guidance for
 the third and fourth quarters will be provided as market conditions clarify.
     Horne noted the company continues to build for the future by focusing on
 reducing costs through process improvements, management of cash, balancing
 production with industry demand and a series of new product launches over the
 next two years.
     "As I have said before, we have made fundamental changes in the way we do
 business and while we can't control business conditions, we can control how we
 respond."
     More than 50 security analysts today toured the company's new cab
 assembly and fabrication facility in Springfield, Ohio.  The 273,000-square-
 foot facility uses advanced manufacturing processes, such as an automated
 die-change system and a robot-operated body assembly system.  This facility
 was featured in a six-page article called "International's Better Way To Build
 Trucks" in the February 19, 2001, issue of Fortune magazine.
     Earnings for the three and six months ending April 30, 2001, are scheduled
 to be released on May 16 at 7 a.m. CDT.
     Navistar International Corporation (NYSE:   NAV) is a leading producer of
 medium trucks, school buses, heavy trucks, severe service vehicles and mid-
 range diesel engines sold under the International(R) brand.  The company is
 also a private label designer and manufacturer of diesel engines for the
 truck, van and SUV markets.  With world headquarters in Chicago, Navistar had
 sales and revenues of  $8.5 billion in 2000.  Additional information can be
 found on the company's web site at www.navistar.com .
 
     Forward Looking Statements
     Statements contained in this news release that are not purely historical
 are forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995, including statements regarding the company's
 expectations, hopes, beliefs and intentions on strategies regarding the
 future.  It is important to note that the company's actual future results
 could differ materially from those projected in such forward-looking
 statements because of a number of factors, including but not limited to
 general economic, business and financing conditions, labor relations,
 governmental action, competitor pricing activity, expense volatility, and
 other risks detailed from time to time in Navistar's Securities and Exchange
 Commission filings.  Navistar assumes no obligation to update the information
 included in this release.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X10138631
 
 

SOURCE Navistar International Corporation
    CHICAGO, April 23 /PRNewswire Interactive News Release/ -- Navistar
 International Corporation (NYSE:   NAV), producer of International(R) brand
 trucks, school buses and diesel engines, today reported that it would return
 to profitability in the second quarter ending April 30 despite continued soft
 industry demand for new trucks.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991207/CGTU007 )
     The company reported losses for its last two fiscal quarters.  In the
 fourth quarter last year, the company recorded an operating profit, but a
 $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,
 said the steps taken last year to strengthen the company and reduce costs
 played an instrumental role in the return to profitability that began in
 March.  He said that despite continued weakness in new and used truck pricing
 and shipments, the company should report second quarter earnings of
 approximately $0.05 cents per share.  Horne added that earnings guidance for
 the third and fourth quarters will be provided as market conditions clarify.
     Horne noted the company continues to build for the future by focusing on
 reducing costs through process improvements, management of cash, balancing
 production with industry demand and a series of new product launches over the
 next two years.
     "As I have said before, we have made fundamental changes in the way we do
 business and while we can't control business conditions, we can control how we
 respond."
     More than 50 security analysts today toured the company's new cab
 assembly and fabrication facility in Springfield, Ohio.  The 273,000-square-
 foot facility uses advanced manufacturing processes, such as an automated
 die-change system and a robot-operated body assembly system.  This facility
 was featured in a six-page article called "International's Better Way To Build
 Trucks" in the February 19, 2001, issue of Fortune magazine.
     Earnings for the three and six months ending April 30, 2001, are scheduled
 to be released on May 16 at 7 a.m. CDT.
     Navistar International Corporation (NYSE:   NAV) is a leading producer of
 medium trucks, school buses, heavy trucks, severe service vehicles and mid-
 range diesel engines sold under the International(R) brand.  The company is
 also a private label designer and manufacturer of diesel engines for the
 truck, van and SUV markets.  With world headquarters in Chicago, Navistar had
 sales and revenues of  $8.5 billion in 2000.  Additional information can be
 found on the company's web site at www.navistar.com .
 
     Forward Looking Statements
     Statements contained in this news release that are not purely historical
 are forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995, including statements regarding the company's
 expectations, hopes, beliefs and intentions on strategies regarding the
 future.  It is important to note that the company's actual future results
 could differ materially from those projected in such forward-looking
 statements because of a number of factors, including but not limited to
 general economic, business and financing conditions, labor relations,
 governmental action, competitor pricing activity, expense volatility, and
 other risks detailed from time to time in Navistar's Securities and Exchange
 Commission filings.  Navistar assumes no obligation to update the information
 included in this release.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X10138631
 
 SOURCE  Navistar International Corporation