Navistar International Corp. Thursday reported a loss for its fiscal first quarter, citing warranty costs and a brake manufacturer’s recall of a part that affected nearly 20,000 of its trucks.
The maker of International brand trucks lost $152 million, or $2.19 per share, a bigger loss than $6 million, or 8 cents per share, from a year ago.
After adjustments, the company said it lost $140 million, or $2.08 per share. Sales for the quarter ended Jan. 31 rose 11%, to $3.05 billion.
Navistar said last month it would post a loss for the quarter due in part to a recall of more than 19,000 trucks and buses due to a faulty brake part made by Bendix Commercial Brake Systems that could leak in cold temperatures.
It also cited pre-existing warranty costs related to legacy and 2010 engines and higher healthcare costs, while noting that the fiscal first quarter is traditionally its slowest due to seasonal factors.
Its truck segment lost $41 million, compared with a profit of $32 million a year ago, while sales rose 20%.
Its engine segment lost $120 million, compared with a year-ago loss of $8 million, while sales gained 10%. Its parts segment posted a $50 million profit, down from $56 million.
CEO Daniel Ustian said the company sees North American truck demand improving 5% to 18% for the fiscal year ending Oct. 31, to a range of 275,000 to 310,000 units.
Navistar also said its full-year adjusted earnings forecast was $295 million to $365 million, or $4.25 to $5.25 per share, down from a previously forecast top-end $5.75 per-share forecast.
