Navistar Narrows Fiscal 2Q Loss as Sales Rise, Warranty Costs Decline
Navistar International Corp. reported a smaller loss in its fiscal second quarter, driven by higher truck sales, lower warranty expenses and cost reductions.
The truck and engine maker’s net loss for the three months ended April 30 was $64 million, or 78 cents per share, compared with a loss of $297 million, or $3.65, in the same period last year.
Revenue slipped to $2.69 billion from $2.75 billion.
“Our results reflect continued progress in improving enterprisewide business operations and positive momentum in the North American industry,” CEO Troy Clarke said in the company’s June 4 report.
The Lisle, Illinois-based manufacturer, which sells International brand trucks and MaxxForce engines, said vehicle chargeouts rose 10% from a year ago in the company’s core market in the United States and Canada, including a 9% gain in Class 8 trucks and a 24% increase in Classes 6 and 7 medium-duty trucks.
For the first half, Navistar reported a loss of $106 million, or $1.30, down from a loss of $545 million, or $6.70, in the first half of fiscal 2014.
Navistar projected that industrywide deliveries of Classes 6-8 trucks and buses in the United States and Canada during its fiscal year 2016 will be in the same range as fiscal 2015 — 350,000 to 380,000 units —with a higher percentage of school buses and medium-duty trucks.
“We think 2016 will be another strong year for the North American industry, and we believe we’re well positioned to take advantage of favorable market conditions for our core businesses,” Clarke added.
A day earlier, Navistar appointed Jeff Sass as senior vice president of North American truck sales and marketing.
Sass, 47, joins Navistar after a 20-year career at Paccar Inc., most recently as national sales manager for Paccar Parts.
He will report to Bill Kozek, president of Navistar’s truck and parts business.
