Navistar Loses $154 Mln. in 4Q, Revenue Falls on Weak Sales
Navistar International Corp. narrowed its loss in its fiscal fourth quarter, but revenue fell, with sales declining in all of its business segments.
The Lisle, Ill.-based truck maker said Dec. 20 that its fourth-quarter loss was $154 million, or $1.91 per share, compared with $2.8 billion, or $40.13, in the same quarter in 2012. Revenue was $2.8 billion, down from $3.2 billion, in the quarter ended Oct. 31.
“The decrease reflects lower sales across all business segments, primarily due to weaker industry conditions and lower market share during the company's emissions strategy transition,” Navistar said, referring to its ongoing move to switch from using exclusively exhaust gas recirculation to comply with 2010 federal emissions standards to using selective catalytic reduction.
“Operationally, we hit our plan this quarter, and we ended the year with an order backlog that is up 26 percent compared to this time last year,” CEO Troy Clarke said in the statement. “Clearly, we are disappointed that our previous engine strategy continues to negatively impact us in the form of additional warranty expense, but we will continue to stand behind our products and manage this issue as these engines work their way through the standard and extended warranty cycles.”
Net loss for the fiscal year was $828 million, or $11.17 per share, compared with a $3 billion loss, or $43.56 a share, the previous year.
Navistar’s North America truck segment reduced its loss to $355 million in the quarter, from $396 million, as it cut costs. For the full year, it lost $902 million, higher than last year’s $736 million.
The North American parts segment had a $147 million profit in the quarter, compared with $103 million the previous year. Its full-year profit was $476 million, while last year’s was $343 million.
Global operations lost only $6 million in the quarter, down from a $73 million loss in the 2012 quarter. Its full-year loss was also only $6 million, compared with $168 million last year.
Navistar’s North American truck segment lost $355 million in the quarter, compared with a $396 million loss last year, as the company reduced costs.
