Navistar Posts Loss of $34 Million in Third Fiscal Quarter
The net loss at truck maker Navistar International Corp. accelerated from the company’s previous fiscal third quarter as revenue dropped 18%, year-over-year, due to anemic North American heavy-duty truck sales.
The Lisle, Illinois, original equipment manufacturer lost $34 million, or 42 cents a share, on sales of $2.09 billion for the three months ended July 31. A year ago the company lost $30 million, or 34 cents, on sales of $2.54 billion.
The parts and financial services divisions remained profitable at the same levels as a year ago. The truck unit’s losses expanded while the shortfall at global operations narrowed.
“This quarter’s results show that we continue to make progress in the face of tougher market conditions, particularly in the heavy segment,” said Navistar CEO Troy Clarke.
“As we pursue our goal of market share growth, we do see some encouraging signs in the area of order share, where year-to-date share of new orders continues to be up for the past three quarters. We are confident that as the industry works through its near term challenges, particularly in Class 8, our improvements in order share will translate to improved retail share as well,” Clarke added in the company’s Sept. 8 earnings statement.
For the nine months ended July 31, the net loss was $63 million, or 77 cents a share, on revenue of $6.05 billion. For the same time a year earlier, the company lost $134 million, or $1.64, on sales of $7.65 billion.
Navistar’s profit in the quarter ended April 30 was the company’s first after a streak of 14 consecutive quarterly losses.
