Navistar Says Supply Constraints Won't Affect Earnings

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avistar International Corp. said late Thursday that supply constraints would not result in excessive inventory in its second fiscal quarter which ends April 30 and should have no impact on the company’s full-year earnings.

Navistar Chairman and Chief Executive Officer Daniel Ustian said in a statement the company chose to work through temporary engine, axle and tire supply constraints rather than reduce production.

“While some of our competitors have cut production, we believe our decision will best serve the needs of our customers and shareowners,” Ustian said.

Ustian reaffirmed the company’s earnings in 2005 would be $4.60 to $5.00 per share. Navistar said it expects to announce earnings for its first quarter ended Jan. 31 within two weeks and that they would be 20 to 25 cents per share, as previously forecast.

he parent company of International Truck and Engine Corp. on March 16 had attributed a second postponement of its first-quarter earnings to the need to restate its fiscal 2004 annual filing with the Securities and Exchange Commission.

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