CHICAGO -- Truck and diesel engine maker Navistar International Corp. said it has reached a settlement with Ford Motor Co. over the automaker's decision to cancel a V-6 diesel engine contract.
Financial terms were not disclosed.
Navistar, in an 8-K filing with the Securities and Exchange Commission, said the agreement includes "appropriate recovery of excess costs" for a plant Navistar built to make the engines. Both parties are released from their obligations under the contract.
Navistar said the settlement would not materially affect its financial outlook.
The company, based outside Chicago in Warrenville, Ill., had said in February that it expected to record a fiscal second-quarter loss of 25 cents to 30 cents a share, assuming it reached a "favorable" agreement with Ford.