Navistar Has Plan to Report Fiscal 2006 Financial Results on Time; Restatement Audit Progressing
WARRENVILLE, Ill.--June 2, 2006--| Industry Sales Volume Forecast For Fiscal 2006 Raised To 435,000-440,000 Units From 425,000 Units; Audit Committee Investigation Found No Evidence Of Fraud |
Navistar International Corporation , the nation's largest combined commercial truck and mid-range diesel engine producer, said today that it has developed an aggressive plan to file its fiscal 2006 Form 10-K on time by mid January 2007.
The company's fiscal year ends October 31, and under regulations of the Securities and Exchange Commission, the company's Form 10-K is required to be filed with the SEC within 75 days after the close of the fiscal year.
Navistar announced on April 7 that it will restate its financial results for the fiscal years 2002 through 2004 and for the first nine months of fiscal 2005. The need for the restatements has been identified in the ongoing review of accounting matters that have prevented the company from filing its fiscal 2005 annual report on Form 10-K and its first quarter 2006 quarterly report on Form 10-Q on time. At present, it is anticipated that all restated financial results and the filing of the fiscal 2005 Form 10-K will be completed shortly before the filing of the fiscal 2006 Form 10-K. The targeted completion dates may change as the process of finalizing the financial statements proceeds.
Daniel C. Ustian, Navistar chairman, president and chief executive officer, said that it is unfortunate that the delay in reporting financial results is overshadowing all the positive things occurring at the company, but the company is working with KPMG, its new independent auditor, on its aggressive plan to get financial reporting back on track.
Supplementing the company's internal accounting staff, approximately 40 employees from Huron Consulting Group, the company's external accounting advisor, are currently assisting the company with the review process - all in a focused effort to complete the process in the most measured and timely way possible.
As part of the review of accounting issues, the company's audit committee has completed an independent investigation into the propriety of accounting and auditing confirmation matters relating to vendor rebates in fiscal year 2005. The investigation was conducted by an independent law firm and found no evidence of fraud or intentional misconduct.
Ustian also announced that the company has raised its North American industry sales forecast for its fiscal year ending October 31, 2006 to a range of 435,000 units to 440,000 units, up from its current forecast of 425,000 units. Heavy truck volume is forecast at 229,000 units and severe service at 75,000 units for a total Class 8 market of 304,000 units, up from the previous Class 8 forecast of 299,000 units. The medium Class 6-7 market sales should range from 106,000 units to 108,500 units, up from 105,000 units while school bus sales should range from 25,000 units to 27,500 units, up from the previous forecast 26,000 units.
"Our great products, competitive cost structure and profitable growth strategies are enabling us to take advantage of this strong 2006 market," Ustian said.
As previously reported, the company announced that it will hold a conference call with analysts on June 7, 2006 beginning at 9:00 a.m. CDT. to review certain operating metrics, the company's goals and achievements as well as the outlook for 2006. The call can be accessed via the company's Web site, www.internationaldelivers.com and clicking on the link on the investor relations page.
Navistar International Corporation is the parent company of International Truck and Engine Corporation. The company produces International(R) brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Navistar is also a provider of truck and diesel engine parts and service sold under the International(R) brand. A wholly owned subsidiary offers financing services. Additional information is available at: www.nav-international.com.
Forward Looking Statements
Information provided and statements contained in the presentation that are not purely historical are forward -looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of the presentation and the company assumes no obligation to update the information included in the presentation. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties and assumptions , including the risk of continued delay in the completion of our financial statements and the consequences thereof, the availability of funds, either through cash on hand or the company's other liquidity sources, to repay any amounts due should any of the company's debt become accelerated, and decisions by suppliers and other vendors to restrict or eliminate customary trade and other credit terms for the company's future orders and other services, which would require the company to pay cash and which could have a material adverse effect on the company's liquidity position and financial condition. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. For a further description of these factors, see Exhibit 99.1 to our Form 8-K filed on April 12, 2006. In addition, until the previously announced review by the company of its accounts is concluded, no assurance can be given with respect to the financial statement adjustments, impacts and period resulting from such review, if any, nor can there be any assurance that additional adjustments to the financial statements of the company will not be identified.
Note concerning June 7 conference call: Investors are advised to log on to the Web site at least 15 minutes prior to the start of the Web cast to allow sufficient time for downloading any necessary software. The financial and statistical information provided as part of the call will be available to investors on the investor relations page of the company's Web site prior to the start of the Web cast. The Web cast will be available for replay at the same Web address within 24 hours following its conclusion and will be available until midnight September 7, 2006.