Bline Company Reported Pretax Net Income From Continuing Operations

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Navistar Reports Solid Fourth Quarter, Year-End Net Income as Weakened Truck Market Continues

Driven by a pickup in fourth quarter commercial truck volume and continued military sales, the company reported 2009 fourth quarter net income of $86 million, equal to $1.19 of diluted earnings per share, on sales and revenues of $3.3 billion.

WARRENVILLE, Ill. — In the face of the worst truck market in 47 years, Navistar International Corp. says delivered strong fourth quarter net income, resulting in a solid profit for the fiscal year ended Oct. 31.

"Despite current economic challenges, we have remained focused on our three-pillar strategy, which includes being profitable in the toughest of times while investing in our future for profitable growth," said Daniel Ustian, Navistar's chairman, president and chief executive officer.

Driven by a pickup in fourth quarter commercial truck volume and continued military sales, the company reported 2009 fourth quarter net income of $86 million, equal to $1.19 of diluted earnings per share, on sales and revenues of $3.3 billion. Fourth quarter 2009 earnings were reduced by charges and costs that totaled $42 million (pre-tax), or 58 cents per diluted share. These charges included a $31 million asset impairment charge related to the idling of the Chatham, Ontario, and Conway, Ark., manufacturing facilities and an $11 million charge related to company's refinancing of its capital structure. In the fourth quarter a year ago, Navistar reported a loss of $343 million, equal to $4.81 of diluted loss per share, on sales and revenues of $3.9 billion. The 2008 fourth quarter loss resulted from asset impairment and related charges of $385 million (pre-tax), or $5.37 per diluted share, arising from strategic changes in the company's Ford diesel engine business.

Net income for the fiscal year ended Oct. 31 totaled $320 million, equal to $4.46 of diluted earnings per share, on net sales and revenues of $11.6 billion. Net income benefited from a settlement with Ford Motor Co. that totaled $160 million (pre-tax), equal to $2.19 of diluted earnings per share. Excluding the Ford settlement and fourth quarter charges and costs as referenced above, fiscal 2009 net income would have totaled $205 million, equal to $2.86 of diluted earnings per share.

In fiscal 2008, Navistar reported net income of $134 million, equal to $1.82 of diluted earnings per share, on net sales and revenues of $14.7 billion. Earnings in 2008 were impacted by asset impairment and other related charges of $395 million (pre-tax), or $5.39 per diluted share, arising from strategic changes in its Ford diesel engine business. Without these costs, net income would have been $528 million, equal to $7.21 of diluted earnings per share.

Manufacturing segment profit was $232 million for the 2009 fourth quarter and $836 million for the full year, compared with a manufacturing segment loss of $168 million for the 2008 fourth quarter and manufacturing segment profit of $693 million for the full year.

"During one of the weakest economies we can recall, we are pleased with our performance and our ability to continue to invest in the long-term future of the business," said A.J. Cederoth, Navistar's executive vice president and chief financial officer. "As a result, we believe we are well positioned to capitalize on a variety of opportunities that lie ahead."

The company had previously stated it anticipated manufacturing cash balances for the year in the range of $700 million to $800 million and it in fact closed 2009 with a manufacturing cash balance of $1.2 billion compared with $751 million as of the prior quarter ended July 31. "The steps taken in 2009 have positioned us to move forward with our operations when the economy continues to recover in 2010," Cederoth said.

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Source: https://www.aftermarketnews.com/navistar-reports-solid-fourth-quarter-year-end-net-income-as-weakened-truck-market-continues/

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