Navistar International Corp. on Tuesday announced it had cut its fiscal fourth quarter loss by more than half from the same time a year ago, while also reducing its loss for the entire fiscal year.
The truck and engine maker reported a fourth quarter net loss of $72 million, or 88 cents per diluted share, compared to a fourth quarter 2013 net loss of $154 million, or $1.91 per diluted share.
Revenues in the most recent quarter totaled $3 billion, up $257 million or 9.3%, compared to the same time a year ago
"Our fourth quarter results, and the results for the entire fiscal year, reflect our continued progress improving business operations across the enterprise and positive trends in the North American industry," said Troy A. Clarke, Navistar president and chief executive officer. "In 2014, we increased our production, chargeouts and order backlog, continued to reduce warranty spend, and achieved structural cost savings that further lowered our breakeven point."
Navistar said it finished the fourth quarter 2014 with $1 billion in manufacturing cash, cash equivalents and marketable securities, which included a $91 million increase in an intercompany loan from Navistar Financial Corporation, Navistar's captive finance company, to support used-truck activities.
Navistar's warranty spending declined in the fourth quarter, down 22% year-over-year. Quality performance improvements, lower repair costs and a reduced population of legacy engines still in the warranty periods drove these results, according to the company.
The net loss for fiscal 2014 was $619 million, or $7.60 per diluted share, compared to a net loss of $898 million, or $11.17 per diluted share, for fiscal 2013. Fiscal year 2014 adjusted earnings before interest, taxes, depreciation and amortization was $294 million versus $89 million adjusted EBITDA for 2013. Revenue for fiscal year 2014 was flat at $10.8 billion compared to fiscal year 2013.
"We continue to make the necessary changes to improve the company and we're entering 2015 in a much stronger position than we were one year ago," Clarke said. "We've restructured our core North American business, have the right products in place, and established the right leadership team. We are well-positioned to meet our 8% to 10% EBITDA margin run rate target exiting 2015."
The company provided the following guidance for 2015:
- Forecasts retail deliveries of Class 6 through Class 8 trucks and buses in the United States and Canada will be in the range of 350,000 units to 380,000 units for fiscal year 2015.
- First quarter 2015 adjusted EBITDA of $0 to $50 million, excluding pre-existing warranty and one-time items.
- First quarter 2013 manufacturing cash, cash equivalents and marketable securities between $700 million – $800 million.