Article excerpt from RV Daily Report,
Greg Gerber, Editor
Navistar loss brings an end to Workhorse
-- Navistar International Corporation today announced a management realignment designed to give further momentum to its strategy of great products, competitive cost and profitable growth, the company said in a press release. The company also released second quarter results and acknowledged that discussions with the U.S. Environmental Protection Agency (EPA) for its EGR-only 0.2 NOx emissions engine certification are ongoing.
Navistar reported a loss of $172 million, or $2.50 per diluted share, for the second quarter ended April 30. After pre-tax adjustments to exclude net impact of pre-existing warranty charges of $104 million related to 2010 emission standard engines, asset impairment charges of $38 million, engineering integration costs of $29 million, a charge of $10 million for non-conformance penalties, and the release of an $181 million income tax valuation allowance related to Canadian deferred tax assets, Navistar's loss for the second quarter 2012 was $137 million, or a loss of $1.99 per diluted share.
"Certainly, our first half performance was unacceptable. It included a warranty reserve to repair early 2010 and 2011 vehicles," said Daniel C. Ustian, Navistar chairman, president and chief executive officer. "We were also affected by speculation surrounding our engine certification for our Class 8 engine, which is why we are working tirelessly with the U.S. EPA to get resolution."
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