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Navistar Losses Lower Than Year Ago, Increase from First Quarter

Truck and engine maker Navistar International has reported a fiscal second quarter net loss of $297 million, or $3.65 per diluted share, compared to a fiscal second quarter 2013 net loss of $374 million, or $4.65 per diluted share.

by Staff
June 9, 2014
Navistar Losses Lower Than Year Ago, Increase from First Quarter

 

3 min to read


Truck and engine maker Navistar International has reported a fiscal second quarter net loss of $297 million, or $3.65 per diluted share, compared to a fiscal second quarter 2013 net loss of $374 million, or $4.65 per diluted share.

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Revenues in the quarter were $2.7 billion, up from $2.5 billion in the fiscal second quarter of 2013.

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Three months ago the company reported a fiscal first quarter loss of $248 million, or $3.05 per share, compared to a fiscal first quarter 2013 net loss of $123 million, or $1.53 per share. Revenues in the quarter were $2.2 billion, down from $2.6 billion in the fiscal first quarter of 2013.

"We continue to make progress with our 'Drive to Deliver' and 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," said Troy A. Clarke, Navistar president and chief executive officer. "This is the third consecutive quarter where we've met or exceeded our EBITDA [earnings before interest, taxes, depreciation and amortization] guidance and we have now met or exceeded our cash guidance for seven straight quarters."

Second quarter 2014 EBITDA was a loss of $119 million, which included the $151 million intangible asset impairment charge, $42 million in pre-existing warranty adjustments and $8 million in restructuring charges, according to Navistar. As a result, adjusted EBITDA was $82 million, which exceeded the company's second quarter guidance of between $25 million to $75 million, excluding pre-existing warranty and one-time items. Navistar finished the second quarter 2014 with $1.06 billion in manufacturing cash, cash equivalents and marketable securities, in line with its cash guidance range of $1 billion to $1.1 billion.

"We still have much work to do in our core North America operations as well as in Brazil, where we are taking actions to lower our breakeven point to offset the ongoing economic challenges in that country," Clarke said. "Overall, we feel good about our steady gains and positive momentum."

Second quarter highlights include sequential and year-over-year improvements both in orders and retail market share for medium-duty and heavy-duty trucks. The company's medium-duty Class 6/Class 7 retail market share was 26.4% for the quarter, up from 17.3% in the first quarter of 2014 and 25.8% in the second quarter of 2013.

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Combined Class 8 retail market share was 14.9% for the quarter, up from 13.9% in the first quarter of 2014 and 14.5% in the second quarter of 2013.

Navistar said its warranty spending improved in the second quarter, down $23 million, or 13%, year-over-year, due to lower costs per repair, fewer exhaust gas recirculation technology engines in the warranty period and ongoing quality improvements for its EGR engines as well as new product launches with selective catalytic reduction technology engines.

Further details are in a release on the Navistar website

 

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