Navistar International Corp. has reported a 98 percent drop in its third-quarter profits. The company blamed its poor performance on continued weakness in the North American truck market.

Net earnings for the third quarter were $2 million or 3 cents per share, down from $96 million or $1.60 per share for the third quarter 2000.

The Warrenville, IL-based company lost $30 million over the first nine months of its fiscal year, compared with profits of $264 million in the same period last year. The company said it hopes that more cost-cutting measures will enable it to turn a profit for the year.

Shipments of trucks and buses were down 7,000 in the quarter, compared to the same time last year. Navistar CEO John Horne said the company has been producing below demand to reduce inventories and that has improved its margins.