US: Navistar restates earnings and reveals GM talks
Thursday, November 22, 2007, AutomotiveWorld.com
According to a report in US-based Work Truck magazine, Navistar International Corporation, the parent of International Truck and Engine, has released restated results for fiscal years 2003, 2004, and 2005. The Warrenville, Illinois-based company has also revealed it is in talks with General Motors over the acquisition of the OEM's medium-duty truck business.
The charges for the restatement periods will total nearly US$2bn, including US$874m for income-tax adjustments, Navistar reported in a Securities and Exchange Commission filing, the magazine states. Analysis of the company's accounting practices has thus far taken two years and isn't expected to be completed until 2008, it is noted.
Navistar International is quoted as saying it is strengthening its financial controls and has reaffirmed a revenue target of US$15bn in 2009.
As for the proposed sale by GM of its medium-duty truck lines, the magazine claims a successful outcome to discussions would result in Navistar taking over the distribution of Chevrolet and GMC medium-duty trucks and servicing divisions. Vehicles included in such a deal would be the Chevrolet Kodiak, GMC Topkick and Isuzu T-Series.
Published on Thursday, November 22, 2007
Free e-newsletters
Our free E-Newsletter service is an excellent way of staying up to date with news and features from around the global auto industry.
