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.
Other Navistar news:
- EPA rule gives Navistar breathing room
- Navistar names new chairman
- Navistar chairman pays the price
- Navistar partners with Cummins on aftertreatment
- Navistar turns to SCR
- Navistar adopts poison pill plan
- Navistar suffers June jitters