Navistar overstated earnings by more than $1 billion

| Thursday, October 25, 2007

Navistar, the parent company of International Truck and Engine Corp., overstated its recent earnings by more than $1 billion dollars, according to the Chicago Tribune.

The Tribune reports that between 2003 and 2005, Navistar overstated its profits by $1.1 billion, and that the company says the problem was largely “human error.”

However, the company said “intentional misconduct” on the part of some employees was also to blame – and that “most” of those employees no longer work there.

The problems came to light after outside directors hired a law firm to do a thorough investigation of Navistar’s accounting practices.

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