April 23, 2001

Navistar Predicts Return to Profitability in Second Quarter Despite Continuing Soft Truck Market

CHICAGO, April 23 -- Navistar International Corporation (NYSE: NAV), producer of International® brand trucks, school buses and diesel engines, today reported that it would return to profitability in the second quarter ending April 30 despite continued soft industry demand for new trucks.

(Photo: http://www.newscom.com/cgi-bin/prnh/19991207/CGTU007 )

The company reported losses for its last two fiscal quarters. In the fourth quarter last year, the company recorded an operating profit, but a $306 million restructuring charge against fourth quarter earnings resulted in a loss for the quarter.

John R. Horne, Navistar chairman, president and chief executive officer, said the steps taken last year to strengthen the company and reduce costs played an instrumental role in the return to profitability that began in March. He said that despite continued weakness in new and used truck pricing and shipments, the company should report second quarter earnings of approximately $0.05 cents per share. Horne added that earnings guidance for the third and fourth quarters will be provided as market conditions clarify.

Horne noted the company continues to build for the future by focusing on reducing costs through process improvements, management of cash, balancing production with industry demand and a series of new product launches over the next two years.

"As I have said before, we have made fundamental changes in the way we do business and while we can't control business conditions, we can control how we respond."

More than 50 security analysts today toured the company's new cab assembly and fabrication facility in Springfield, Ohio. The 273,000-square- foot facility uses advanced manufacturing processes, such as an automated die-change system and a robot-operated body assembly system. This facility was featured in a six-page article called "International's Better Way To Build Trucks" in the February 19, 2001, issue of Fortune magazine.

Earnings for the three and six months ending April 30, 2001, are scheduled to be released on May 16 at 7 a.m. CDT.

Navistar International Corporation (NYSE: NAV) is a leading producer of medium trucks, school buses, heavy trucks, severe service vehicles and mid- range diesel engines sold under the International® brand. The company is also a private label designer and manufacturer of diesel engines for the truck, van and SUV markets. With world headquarters in Chicago, Navistar had sales and revenues of $8.5 billion in 2000. Additional information can be found on the company's web site at www.navistar.com .

Forward Looking Statements

Statements contained in this news release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including but not limited to general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility, and other risks detailed from time to time in Navistar's Securities and Exchange Commission filings. Navistar assumes no obligation to update the information included in this release.


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