Navistar Reduces 3Q Loss, Approaches Break-Even Point
Navistar International Corp. posted its smallest quarterly loss in two years, narrowly missing the break-even point in its fiscal third quarter as production levels rose and warranty costs declined.
Navistar, which builds International trucks and MaxxForce engines, posted a loss of $2 million, or 2 cents per share, compared with a loss of $247 million, or $3.06, in the same period a year earlier.
Revenue for the quarter ended July 31 declined to $2.84 billion, from $2.86 billion a year ago, the company said.
“Our third-quarter results reflect a number of positive trends, including increased production, improvements in warranty charges, cost reductions that further lowered our break-even point and our continued efforts to manage cash,” CEO Troy Clarke said in the Sept. 3 announcement.
The company reported $21 million in income from continuing operations before taxes, compared with a $211 million loss a year earlier.
Navistar said its warranty expenses fell 22% from a year ago and declined 14% from the previous quarter, driven by lower repair costs and better performance from its trucks with selective catalytic reduction aftertreatment.
