Navistar Reports 4Q Loss on Tax, Restructuring Charges
Navistar International Corp. reported a fourth-quarter loss on tax expenses and expenses related to a cost-reduction program and engine warranties.
The truck and engine maker said Wednesday it lost $2.8 billion, or $40.13 per share, compared with a profit of $255 million, or $3.48, a year ago.
Its pre-tax loss was $566 million, compared with a $275 million pre-tax profit in the same period last year. Revenue for the quarter ended Oct. 31 fell 24% to $3.3 billion, reflecting lower sales.
The loss included $2 billion, or $28.59 per share, in tax costs, pre-tax charges of $149 million in warranty expenses related to 2010 big-bore engines, $73 million in cost-reduction actions, $16 million in restructuring charges for its North American manufacturing operations and engineering integration and $14 million in non-conformance penalties.
Navistar said its net loss for fiscal year 2012 was $3 billion, or $43.56 per diluted share, compared with net income of $1.7 billion, or $22.64, for fiscal year 2011.
“Unfortunately, we saw a spike in warranty spend in late October and early November for the few remaining engine issues and the cost to take the proactive actions to support our customers and fix those items is higher than we anticipated,” Chairman and CEO Lewis Campbell said in a statement.
But, he added, “customer feedback and positive three- and nine-months-in-service data show today we are delivering the highest quality trucks since the 2010 launch, and quality will continue to be our top priority.”
Navistar makes International brand trucks.
