(By Balachander) Truck maker Navistar International Corp. (NYSE:NAV) estimates a charge of between $40 million and $60 million in the fourth quarter in connection with its restructuring program, a regulatory filing showed.
The Lisle, Illinois-based company, which is struggling to meet current U.S. emission rules for its new heavy-duty truck engine, had earlier this month said it was taking actions, including reduction of jobs, to cut costs.
Navistar, which recently withdrew its fiscal 2012 guidance, had also said it is offering the majority of its U.S.-based non-represented salaried employees the opportunity to apply for a voluntary separation program.
Meanwhile, the U.S. Environmental Agency (EPA) has increased the penalty that Navistar must pay for each engine it manufactures that does not does not meet current emissions standards.
The penalty is $3,744 per engine, nearly double the fine of $1,919 the company had been paying, but better than $8,000 to $10,000 per engine some analysts' were expecting Navistar to pay.
In a separate statement late Thursday, Navistar's financial unit agreed to renew and increase its largest dealer inventory funding facility to $750 million, effective immediately.
Navistar Financial's Chief Financial Officer Bill McMenamin said the increase allows greater flexibility in funding wholesale assets.
The one-year renewal includes an increase of $250 million over last year in anticipation of the maturity of a $350 million debt issuance in October.
The stock, which has been trading in the 52-week range of $20.07 to $48.18, ended at $21.47 on Thursday.