Company Seeks to Purchase GM’s Medium-Duty Business Navistar International Corp., which has not filed financial reports in two years, said Thursday it lost $365 million from 2003 through 2004, when it previously had posted a profit of $230 million, Bloomberg reported. The parent company of International Truck and Engine Corp. reported the restated results in a regulatory filing Thursday, Bloomberg said. Navistar has yet to release financial reports for fiscal 2005 and beyond. Navistar also announced that it was in discussions with General Motors Corp. acquiring GM’s medium-duty truck business, including the rights to manufacture GMC and Chevrolet brand trucks, the company said in a statement. Navistar stopped releasing financial information after its third fiscal quarter of 2005, citing accounting problems, and was then delisted by the New York Stock Exchange. Its shares nevertheless have more than doubled this year as Navistar logged $1 billion in U.S. military orders for blast-resistant vehicles. While most of the adjustments were for errors due to mistakes, there was also evidence of “intentional misconduct,” Bloomberg reported, citing the company, which has changed auditors and overhauled its accounting department. Navistar’s shares fell 40 cents to $68.85 yesterday in over-the-counter trading, Bloomberg reported. By Transport Topics
Navistar Eyes GM's Medium-Duty Truck Unit Navistar International Corp. said it's in talks to buy General Motors Corp.'s medium-duty truck business, Bloomberg News reported. "We are in the process of completing" a preliminary accord, Navistar Chief Executive Officer Dan Ustian said last Thursday in a conference call. Melisa Tezanos, a spokeswoman for GM, declined to comment, Bloomberg said. If an agreement is reached, Navistar will sell Chevrolet and GMC medium-duty trucks "through GM's proprietary dealer network" in the U.S. and Canada, Navistar said in a statement. Navistar, the maker of International trucks and engines, last week restated its fiscal 2003 and 2004 results to a loss of $365 million, from a profit of $230 million. The company still hasn't provided full results for 2005 and beyond, Bloomberg said. The restatement came as 4,000 Navistar workers represented by the United Auto Workers continue a strike that began Oct. 23. Navistar has been negotiating a new labor contract for two years, Bloomberg said. L&MT
