Breaking News Bar
posted: 8/6/2012 5:02 PM

Navistar jumps on report it's considering job cuts

hello
Success - Article sent! close
  • Lisle-based Navistar

      Lisle-based Navistar

 
Bloomberg News

Lisle-based Navistar International Corp. stock rose the most in five weeks after Crain's Chicago Business reported that the maker of International trucks has told employees it's considering options for the business including job cuts.

The shares gained 10 percent to $24.62 at the close in New York, the biggest daily increase since June 29. The company's stock has fallen 35 percent this year.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

Navistar told employees last week that voluntary departures and involuntary job cuts are among options it's considering as it looks to cut expenses, Crain's said, citing Karen Denning, a spokeswoman. The company has offered a voluntary separation program for any salaried full-time employee, according to the report. Navistar has 3,400 such eligible employees in Lisle, Joliet and Melrose Park, Illinois, Crain's said.

Navistar slid to its lowest price in 3 years on Aug. 2 after disclosing a U.S. Securities and Exchange Commission inquiry. The company, which has been developing an engine to meet U.S. emission standards after its earlier technology failed to comply, last week also withdrew its yearly forecast until the release of its third-quarter earnings next month.

The company sent a memo to staff members last week announcing that job reductions are an option being considered, Denning said by telephone today.

"That is the last lever," she said. "The number of people cut is contingent on the success in other areas."

Navistar has about 19,000 employees, Denning said.

Fitch Ratings today downgraded Navistar's issuer default ratings to B- from B+, citing "the negative impact of recent developments including already weak operating results in 2012."

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.