Navistar International Corp. (NAV) on Wednesday reported its financial losses widened during its fiscal third to $28 million, or a loss of 34 cents per diluted share.
This compares to a net loss of $2 million, or a loss of 2 cents per diluted share, a year earlier for the truck and engine manufacturer.
This happened as revenue fell to $2.5 billion from $2.8 billion over the same time frame.
An increase in the company's truck, bus and parts sales in the U.S. and Canada was more than offset by lower export truck and parts sales, revenue declines in its global operations and exit from the Blue Diamond Truck joint venture, according to Navistar.
Retail deliveries and chargeouts in the company's core markets, Class 6-8 trucks and buses in the United States and Canada, were up 15% and 5%, respectively, year-over-year. Dealer-led sales increased 27% year-to-date through June.
"We are encouraged that overall, our core truck business continues to improve year-over-year, driven by steady and improving performance in medium, school bus and severe service, where we are on track to achieve our full-year market share goals," said Troy A. Clarke, Navistar president and chief executive officer. "We're not standing still and we continue to take actions to improve both the revenue and cost sides of the business”
For the third quarter 2015, the truck segment recorded a loss of $36 million, compared with a year-ago third quarter loss of $3 million. It recorded charges for adjustments to pre-existing warranties of $3 million compared to a benefit for adjustments to pre-existing warranties of $32 million in the third quarter of 2014.
Navistar’s parts business saw profit increase 10% in the third quarter to $151 million while its global operations segment recorded a loss of $26 million compared to $21 million a year earlier. Its financial services business profit increased slightly to $26 million from $24 million in the fiscal 2014 third quarter.
Navistar also announced that it is pulling forward the next phase of its planned cost realignment and improvement actions in the areas of structural costs, materials costs and manufacturing costs.
"The cost efforts underway will enable us to become even more competitive in the marketplace," Clarke said. "These actions will allow us to invest in key areas of the business, paving the way for Navistar to be profitable and cash flow positive in 2016 and better positioned as the truck market comes off its peak."
Looking ahead to the fourth quarter, Navistar said it expects to achieve earnings before interest, taxes, depreciation and amortization (EBITDA) of between $175 million to $225 million, excluding pre-existing warranty and one-time items.
More details are on the Navistar International website.