Navistar Reports 3Q Loss
Navistar International Corp. reported a loss of $247 million in its fiscal third quarter, or $3.06 per share, and said it has started taking orders for the first selective catalytic reduction engine option for medium-duty trucks and school buses.
The earnings for the quarter ended July 31 compare with a net income of $84 million, or $1.22 a share, in the same period a year earlier, Navistar said Sept. 4. Revenue fell to $2.9 billion compared with $3.2 billion the prior year.
The truck and engine maker blamed the loss primarily on its transition to SCR for heavy- and medium-duty trucks, and weak industry conditions. Its North American truck operations have switched from using only exhaust gas recirculation for emissions control to SCR engines from Cummins Inc. over the past year.
“We clearly need to accelerate progress with our financial results, and we are already implementing additional cost reduction and business improvement actions to counter our near-term volume challenges,” Navistar President and CEO Troy Clarke said in a statement. “This includes resizing our company to match our current business environment.”
The 6.7-liter Cummins ISB will be dropped into the first Classes 6 and 7 DuraStars later this month, with the Lisle, Ill., manufacturer ramping up to full production in December. Full production for Navistar’s CE school buses with the engines is scheduled for January, Navistar said in a Sept. 3 news conference.
In Navistar’s earnings announcement, the company also said that it started this month cutting 500 jobs globally. It said in August that it would cut “a few hundred” jobs but did not have a specific figure.
