Navistar Reports Net loss of $248 million on Revenues of $2.2 billion

Navistar International Corporation (NYSE: NAV) announced a first quarter 2014 net loss of $248 million, or $3.05 per diluted share, compared to a first quarter 2013 net loss of $123 million, or $1.53 per diluted share.

Revenues in the quarter were $2.2 billion, down from $2.6 billion in the first quarter of 2013.

Lower sales volumes, primarily due to the company’s medium-duty emissions strategy transition and lower military sales, drove the year-over-year performance decline, which was partially offset by $67 million in reduced structural costs.

First quarter 2014 results include an unfavorable impact of $21 million due to fluctuations in foreign exchange rates and $18 million in asset impairment charges.

“We signaled that this would be a tough quarter due to our mid-range product transition, the ongoing reduced sales in our military business, and because the first quarter, historically, represents the weakest operational period of the year for us. Given all this, we are encouraged we hit our cash and adjusted EBITDA guidance,” said Troy A. Clarke, Navistar’s president and chief executive officer.

The company noted that it has “more hard work to do to rebuild our market share and further reduce our costs.” ,

First quarter product highlights included the successful launch of the Cummins ISB engine offering in the medium-duty International® DuraStar® and IC Bus™ CE Series school bus.

These and other actions helped the company achieve Class 6/7 retail share of 22 percent and Class 8 retail share of 18 percent in January.

Both represented the highest monthly retail share performance Navistar has attained in the last six months, and helped offset lower than expected retail performance in the first two months of the quarter. The company finished the quarter with an order backlog 56 percent higher than this time one year ago.

 

 

 

Tags: Navistar

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