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Navistar Recalls Brake Units

Tuesday 10:05 am ET

WASHINGTON October 1, 2002; Reuters repoorted that truck maker Navistar International Corp. said on Tuesday it requested a voluntary safety recall of up to 90,000 hydraulic anti-lock brake system electronic control units in the United States and Canada.

The recall, which was submitted by its International Truck and Engine Corp. unit with the National Highway Traffic Safety Administration on Tuesday, could result in a fourth-quarter pretax charge of $51 million, Navistar said.

As a result of the recall, Navistar said in a filing made with the U.S. Securities and Exchange Commission that it has revised its fourth-quarter forecast to a loss of 72 cents to 77 cents per share.

The company said it plans to pursue a recovery of the costs associated with the recall of the units, which were manufactured by a third party.

"Notice to owners will be sent and the recall will commence promptly after NHTSA approval," Navistar said in the SEC filing.