Navistar’s 2Q Loss Declines; Revenue Improves
Navistar International Corp. announced June 5 that its fiscal second-quarter loss narrowed from a year ago as its Class 8 truck orders and market share improved.
The maker of International brand trucks reported a loss of $297 million, or $3.65 per share, down from $374 million, or $4.65, a year ago.
Navistar also boosted its Class 8 industrywide truck sales forecast to a range of 225,000 to 235,000, from a previous projection of 220,000 to 230,000.
Its North American truck segment’s loss narrowed to $134 million, from $303 million a year ago. Revenue for the quarter ended April 30 rose 10% to $2.75 billion from $2.5 billion.
“We have seen a number of encouraging signs this quarter, including improvements in our market share and strong order backlog, positive trends in our warranty expense and spend, and higher than expected structural cost reductions,” CEO Troy Clarke said.
The period was the third consecutive quarter the truck maker has met or exceeded its guidance for earnings before interest, taxes, depreciation and amortization, Clarke said in a statement.
Second-quarter EBITDA was $82 million after charges and adjustments, compared with its guidance of $25 million to $75 million.
Orders and retail market share for both medium- and heavy-duty trucks improved sequentially and year-over-year. Navistar’s combined Class 8 retail market share was 14.9%, up from 13.9% in the previous quarter and 14.5% in the same quarter last year.
