Navistar Narrows First-Quarter Net Loss
Truck maker Navistar International Corp. posted a smaller quarterly net loss than the same period a year earlier, even though revenue also declined by 27%.
Navistar, the maker of International trucks, lost $33 million, or 40 cents a share, on global sales of almost $1.8 billion, during the three months ended Jan. 31, the company reported March 8. In the previous first fiscal quarter, the manufacturer lost $42 million, or 52 cents, on revenue of $2.42 billion.
The company attributed the revenue decline to the termination of the Blue Diamond Truck joint venture with Ford Motor Co. in mid-2015.
Among the company’s four major divisions, losses expanded in the truck segment, parts and financial services earned more and the loss narrowed for global operations.
"Despite a lower revenue base, we continued to unlock value by significantly improving adjusted EBITDA [debt-free cash flow] through managing and optimizing our costs," Navistar CEO Troy Clarke said in the earnings statement. "We are encouraged by our [first-quarter] performance and remain on track to achieve our goals of returning to profitability and generating manufacturing free cash flow in 2016."
The company noted the softening U.S. heavy-duty trucks market and said overseas sales have been hurt by the strong U.S. dollar.
Clarke also said that over the “next few years,” the company will announce a new product every six months, on average, “completely refreshing the product line by the end of 2018.”
