Navistar Posts Fiscal 3Q Loss of $28 Million
Truck maker Navistar International Corp. posted a fiscal third-quarter loss of $28 million, or 34 cents a share, on revenue that declined to $2.54 billion, with one-time charges last year and currently contributing to the relative downturn.
For the three months ended July 31, 2014, the Lisle, Illinois, original equipment manufacturer lost $2 million, or 2 cents a share, on quarterly revenue of $2.84 billion — the company’s best performance in the past three years.
Bloomberg News calculated the consensus earnings estimate among stock analysts at a profit of 13.4 cents a share. The OEM’s last profitable quarter came in mid-2012.
Navistar’s truck business lost $36 million on quarterly sales of $1.78 billion. A year earlier, it lost $3 million on sales of $1.96 billion.
The truck division had a one-time charge against earnings this quarter because of an increase to reserves to cover low used-truck values. A year ago, there was a one-time benefit because warranty claims decreased.
The parts division enjoyed increasing profitability, rising to $151 million form $137 million in last year’s quarter.
Global operations declined to a $26 million loss from $21 million lost a year earlier.
“We are encouraged that overall, our core truck business continues to improve year-over-year, driven by steady and improving performance in medium, school bus and severe service, where we are on track to achieve our full-year market share goals,” CEO Troy Clarke said.
“We continue to take actions to improve both the revenue and cost sides of the business,” he said in the company’s Sept. 2 earnings statement.
