Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Navistar Reports 2Q Loss of $374 Million, Strong Increase in May Orders

Navistar International Corp. announced a second quarter net loss of $374 million, or $4.65 per diluted share, compared to a second quarter 2012 net loss of $172 million, or $2.50 per diluted share. At the same time, it said it has seen a strong increase in May Class 8 orders and announced it will start adding SCR aftertreatment to its medium-duty trucks.

by Staff
June 10, 2013
Navistar Reports 2Q Loss of $374 Million, Strong Increase in May Orders

 

3 min to read


Navistar International Corp. announced a second quarter net loss of $374 million, or $4.65 per diluted share, compared to a second quarter 2012 net loss of $172 million, or $2.50 per diluted share. At the same time, it said it has seen a strong increase in May Class 8 orders and announced it will start adding SCR aftertreatment to its medium-duty trucks.

The year-over-year decline was mainly due to lower volumes and higher pre-existing warranty adjustments of $164 million in the second quarter, primarily related to EPA 2010-emissions engines. This was partially offset by $60 million in lower SG&A expenses and $32 million in reduced engineering and product development costs.

Manufacturing revenue in the quarter was $2.5 billion, down 23% from the second quarter of 2012. The decline reflects a 14% drop in overall industry demand and lower market share during the company's emissions strategy transition, as it moves from an in-cylinder emissions solution to one using selective catalytic reduction.

Ad Loading...

This was partially offset by stronger volumes in the South America engine business.

"We are not satisfied with our overall financial results this quarter, but we are pleased with the continued progress we made in a number of areas on our turnaround plan," said Troy A. Clarke, Navistar president and chief executive officer. "We still face some significant, yet solvable challenges, primarily in the areas of higher pre-existing warranty costs for our earlier EPA 2010 emissions level engines, as well as in rebuilding sales and restoring market share. However, we are already implementing the right leadership and business process changes to effectively address these priority issues."

The company recently announced the hiring of industry veteran Bill Kozek to run its North America Truck and Parts group, and the naming of Bill Osborne, who spent more than 20 years in the automotive industry before joining Navistar in 2011, to head up global quality.

"We delivered on a number of our near-term priorities this quarter. We exceeded our cash guidance, continued to over-achieve on our structural cost reduction efforts, and obtained regulatory approval for our MaxxForce 13-liter engine with SCR, which we launched on time in our ProStar truck the last week of April," Clarke added. "We were also pleased with our ongoing progress in shedding non-core assets that are not providing adequate returns on investment."

In the second quarter Navistar completed the sale of its equity interests in its India truck and engine joint ventures; completed the sale of its Workhorse Custom Chassis brand; and subleased a portion of its Cherokee, Ala., manufacturing facility to a railcar manufacturing company. Already in the third quarter, the company has sold its RV business.

Jack Allen, Navistar's chief operating officer, notes that May orders were up 38% versus the average sales rate for the previous quarter, driven higher by strong interest in the MaxxForce 13-liter with SCR and the ProStar ISX.

With its heavy duty launches essentially completed, the company is turning its focus to adding SCR aftertreatment to its medium-duty products. Navistar announced it will use Cummins SCR on medium-duty engines, which it will begin to make available in the first quarter of calendar year 2014.

More Equipment

Khaki-colored autonomous Peterbilt truck hauling triple trailers loaded with frac sand for Atlas Energy Solutions in the Permian Basin.
Equipmentby News/Media ReleaseJuly 31, 2026

Atlas Expands Kodiak Driverless Truck Fleet in Permian Basin

Atlas Energy Solutions is expanding autonomous frac sand hauling in the Permian Basin with a second load-out location and plans for 100 driverless trucks by mid-2027.

Read More →
Equipmentby Jim ParkJuly 30, 2026

Putting Mack’s Command Steer to the Test

A test drive of Mack’s Command Steer active steering system evaluates how it can make truck driving easier and less tiring.

Read More →
Photo of Volvo VNL truck on highway with illustration of software over the air updates
Equipmentby News/Media ReleaseJuly 27, 2026

Mack, Volvo Expand DEF Derate Software Updates

The updated software gives Mack and Volvo truck owners more time to address DEF-related issues before the engine derates or the vehicle goes into reduced-speed inducement, following new EPA guidance.

Read More →
Ad Loading...
Graphic showing Rush and MCT logos with blue tractor pulling white refrigerated trailer in the background
Maintenanceby News/Media ReleaseJuly 24, 2026

Rush, MCT Team Up to Grow Refrigeration Service Network

The joint venture will operate MCT's network of Carrier Transicold dealerships and mobile service locations, with the companies promising greater service capacity and uptime for refrigerated fleets.

Read More →
EquipmentJuly 23, 2026

Cummins Adjusts 2027 Engine Rollout After EPA Proposal

The engine maker will gradually introduce its new Model Year 2027 diesel engines while continuing to offer current models during the transition, citing the EPA's proposed emissions rule changes.

Read More →
Blue International heavy-duty truck with Aurora driverless truck software coming head-on on an interstate highway
Equipmentby Deborah LockridgeJuly 22, 2026

Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight

Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.

Read More →
Ad Loading...
YouTube thumbnail with Ingrid Brown, red Peterbilt truck behind her, and the words Classic Custom: Peterbilt 589: Heavy Duty Trucking Spotlight
Equipmentby Wayne ParhamJuly 20, 2026

Peterbilt 589 Spotlight: A Close Look at a Custom Working Truck [Video]

There's more to this customized Peterbilt Model 589 and Great Dane refrigerated trailer than chrome and stainless (although there's plenty of that too!) A veteran driver explains the design choices and practical features behind this working truck.

Read More →
Continental ContiTread HDL 5 EP
Equipmentby News/Media ReleaseJuly 16, 2026

Continental Expands Retread Lineup With New ContiTread HDL 5 EP

New long-haul drive retread is designed to improve fuel efficiency, extend tread life, and lower fleets' cost per mile.

Read More →
Four men in suits on the National Mall with giant video screen showing capitol building in the background
Equipmentby Deborah LockridgeJuly 10, 2026

EPA Proposal Could Ease 2027 Truck Costs and Buying Uncertainty

The proposal doesn't change the tougher NOx standard, but it would revise key implementation requirements that manufacturers say have driven up costs and complicated fleet purchasing decisions.

Read More →
Ad Loading...
Illustration showing Paccar MX engine with sketch illustration of DEF fill tank in background
Equipmentby Deborah LockridgeJuly 7, 2026

Cummins, Paccar Ease DEF Derates After EPA Guidance

Updated diesel engine software gives truck operators more time to address emissions-system issues while staying compliant with EPA emissions standards.

Read More →