Navistar International (NYSE:NAV) announced on Thursday that it earned $84 million during its fiscal third quarter, down 94% from $1.4 billion in the same time last year.
But that profit was due to a one-time tax gain of $196 million. Excluding the tax benefit and other charges, the company lost $100 million in the third quarter. Last year’s profit was also inflated by a $1.48 billion tax valuation change. Without that, it lost $54 million in the third quarter of last year.
The commercial truckmaker recorded revenue of $3.3 billion, off 6% from $3.5 billion in 2011, but topping the $3.03 billion Wall Street had forecast, Bloomberg noted.
Investors were buoyed by the news. Navistar shares jumped about 7% in Thursday morning trading.
Company officials said they were “not pleased” with the results and planned trim annual costs by between $150 million and $175 million. Navistar will attempt to sell assets and slash payrolls in order to meet that goal. Layoffs are expected to begin next quarter.
A number of private equity firms, as well as Carl Icahn, have purchased significant stakes in the company.
The dismal quarterly numbers come a week after the sudden retirement of CEO Daniel Ustian. His departure followed Navistar’s failed effort to win Environmental Protection Agency certification for a newly developed diesel engine.