Navistar said an electric truck will be the first vehicle off the line at its new San Antonio production facility when it opens in the spring of 2022. The news came as part of the company’s third-quarter earnings release, where it also noted that its NEXT eMobility Solutions business unit recently signed a master services agreement with In-Charge Energy to provide charging infrastructure and consulting services to electric vehicle customers.
While Navistar did not offer any more specifics, at the North American Commercial Vehicle Show last fall, the company unveiled a prototype for a battery-electric drive version of its International MV medium-duty truck, dubbed the eMV. Originally Navistar said it was slated to come to market by early 2021. Navistar again showed the truck at The Work Truck Show earlier this year.
The company held a virtual groundbreaking for its new San Antonio facility in late June, and in August, announced a new facility in Rochester Hills, Mich., will house its NEXT eMobility Solutions business unit.
Navistar also recently announced that it had become a member of CharIN E.V., a global association that focuses on electric vehicle adoption and wants to set a global standard for charging battery-powered electric vehicles.
Navistar Third-Quarter Results
Revenues in the quarter were $1.7 billion, down 45% from third quarter 2019. Core (Class 6-8 trucks and buses in the United States and Canada) chargeouts (trucks that have been invoiced to customers) were down 53%. The decrease was primarily driven by the impact of COVID-19, as well as prior year comparable quarter results that were near the peak of the prior industry cycle.
Third quarter 2020 EBITDA (earnings before interest, taxes, depreciation, and amortization) was $73 million, down from $281 million a year earlier. Adjusted EBITDA was $104 million versus $266 million a year go. Adjusted net income was a loss of $8 million compared to income of $147 million in the third quarter last year.
Compared to a year ago, Navistar reported its market share has slipped in both Class 6-7 and Class 8 trucks, but it has gained share in Class 8 severe service trucks. Its Class 6-7 share dropped from 26.8% to 22.1%. Its Class 8 share dropped from 13.9% to 12.6%, primarily due to a drop in share for regular Class 8 trucks from 13.8% to 10.6%. Severe service share, however, rose from 14.1% to 16.5%. It sold 64% fewer Class 6 and 7 trucks this quarter compared to a year ago, and 68?% fewer Class 8 heavy trucks, but only 15% fewer severe service trucks.
"Our fiscal third quarter opened during the middle of many stay-at-home orders and ended with sections of the economy beginning to reopen, and our results certainly reflect this," said Persio Lisboa, president and CEO. "While marketplace uncertainties continue, we are accelerating the pace of progress on our Navistar 4.0 strategy for financial improvement, so we can pull forward its benefits and take full advantage of a stronger industry when it arrives."
The company's Navistar 4.0 strategy lays out a plan to increase the company's EBITDA margins to 12% by 2024.