Navistar Posts Q3 Profit, But...

September 6, 2012

Navistar reported a profit for the third quarter, but only after a $196 million tax benefit masked high costs related to its unsuccessful attempt at meeting EPA emissions regulations with an EGR-only system.

Without the tax benefit, the company would have lost $100 million, compared with a year-earlier loss of $54 million (also excluding special items), the Chicago Tribune reported. As a result, the company has outlined a cost-cutting program and launched a review of noncore businesses.

According to Navistar, buyouts and job cuts are expected to net $70 million to $80 million per year in savings. Navistar stated its goal is to cut costs by $150 million to $175 million year over year, starting in fiscal 2013.

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