NAVISTAR INTERNATIONAL CORPORATION (NYSE:NAV) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05
On August3, 2017, Navistar International Corporation (the “Company”) announced its plan to cease engine production at its plant in Melrose Park, Ill. (“Melrose Park Facility”) in the second quarter of fiscal 2018. The majority of engines produced at the Melrose Park Facility are medium duty 9/10 liter engines used in International® Class6 and 7 vehicles, for which alternative engine options are currently offered in all applications. The company will continue the transformation of the facility’s technical center, including truck and engine testing and validation as well as used truck sales and reconditioning, continuing the process that started in 2010.
As a result of the cessation of engine production at the Melrose Park Facility, the Company incurred pre-tax charges of approximately $43million, which consists of charges of $32million for employee separation and other pension and post retirement contractual termination benefits, and $11million for inventory reserves and other-related charges. Approximately $8million of these restructuring charges will result in additional future cash outlays. In addition, the Company anticipates up to $8million in additional charges for accelerated depreciation and related impacts during the remainder of fiscal 2017 the first half of fiscal 2018.
| Item 2.05 | REGULATION FD DISCLOSURE |
In accordance with General Instruction B.2. to Form 8-K, the following information shall not be deemed “filed” for purposes of Section18 of the Securities Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
On August3, 2017, the Company issued a press release announcing its planned cessation of engine production at the Melrose Park Facility. The press release is attached hereto as Exhibit 99.1 and is incorporated in this Item 2.05 by reference.
| Item 2.05 | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits
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Exhibit No. |
Description |
| 99.1 | Press Release, dated August3, 2017 “Navistar To End Production of Proprietary Medium Duty 9/10 Liter Engine in 2018” |
Forward-Looking Statements
Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements only speak as of the date of this report and the company assumes no obligation to update the information included in this report. 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. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form10-Kfor the fiscal year ended October31, 2016. 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. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
NAVISTAR INTERNATIONAL CORP ExhibitEX-99.1 2 d430393dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Navistar International Corporation 2701 Navistar Dr. Lisle,…To view the full exhibit click here
About NAVISTAR INTERNATIONAL CORPORATION (NYSE:NAV)
Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.