Automotive World - US: Navistar International restates income for three financial years

US: Navistar International restates income for three financial years

Tuesday, December 11, 2007, AutomotiveWorld.com

Navistar International has announced the filing of its 2005 Form 10-K, including restated financial data for its 2003, 2004 and 2005 fiscal years. The OEM released unaudited, preliminary financial data for these three years on 25 October.

As per its 2005 Form 10-K, the company has reported net income of US$139m for 2005 and net losses of US$44m and US$333m for 2004 and 2003 respectively. Navistar's sales and revenues for 2005 reached US$12.1bn, an increase of nearly 60% compared with the 2004 figure of US$9.7bn.

In 2003, the company posted sales and revenues of US$7.7bn. Pro forma manufacturing segment profits increased to US$421m in 2005 from US$172m in 2004 and US$100m in 2003.

Navistar International notes that its wholly owned subsidiary, Navistar Financial Corporation (NFC) has been granted a waiver, and consent from the participants in its US$1.42bn credit agreement signed on 1 July 2005. The waiver expires on 30 November 2008.

"This waiver covers a default created by NFC's and Navistar's failure to meet the filing requirements of Sections 13 and 15 of the Exchange Act of 1934, as amended, with respect to their Annual Reports on Form 10-K for 2005, 2006 and 2007, and quarterly reports on Form 10-Q for the periods from 31 January 2006 through 31 July 2008," the OEM said in a statement.

In a filing with the US Securities and Exchange Commission (SEC), Navistar noted that it will incur charges for the restatement periods totalling nearly US$2bn. This includes US$874m for income tax adjustments, US-based World Truck magazine reports.

The OEM adds that it aims to achieve sales and revenues of US$15bn by 2009. By this timeframe, Navistar also hopes to have operational profitability of US$1.6bn from pro-forma manufacturing operations.

Published on Tuesday, December 11, 2007