Navistar resolving accounting problems

Navistar International Corp. reported Thursday that it posted a fiscal 2007 loss of $120 million on declining sales of commercial vehicles and engines.

The report by the Warrenville-based truckmaker brought its annual financial reports up to date for the first time since uncovering problems in its accounting system in 2005.

The net loss for the period ended Oct. 31 was $1.70 a share, compared with net income of $301 million, or $4.12 a share, a year earlier. Sales fell 13 percent to $12.3 billion.

Navistar, the world's fourth-largest truckmaker, said its loss came as industry volumes tumbled 30 percent after surging ahead of implementation of tougher emission rules. For this fiscal year, Navistar is forecasting pretax profit of as much as $510 million.

Navistar shares have gained 40 percent this year and reached their highest in more than 20 years Wednesday.