Navistar: Gunning The Engines

Lower labor costs and streamlined operations help it rally

Early last year, things were looking bleak for Navistar International Corp. After decades of crippling labor problems and manufacturing snafus, the $6.4 billion Chicago truck and engine maker had suffered another steep earnings slide in fiscal 1996. Then, in a showdown with United Auto Workers members over costs, CEO John R. Horne had been forced to scrap the company's latest truck introduction. By April, disheartened investors let the stock drop to $9 a share, just 50 cents above its low.

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