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Navistar International Corp. reported a net loss and lower revenue in its fiscal 2020 fourth quarter, citing tax-related items, the pandemic and charges on pre-existing warranties. It posted similar results for its full-year period.
Quarterly results were enhanced by profits at its parts segment.
Navistar for the quarter ended Oct. 31 posted a net loss of $236 million, or a loss of $2.36 per diluted share, compared with net income of $102 million, or $1.02, a year earlier.
Revenue in the quarter fell to $2.1 billion compared with $2.8 billion in the 2019 period.
“While our results were affected by the pandemic and the impact of certain legal matters,” Navistar CEO Persio Lisboa said in a release, “we have experienced consistent sequential improvement in our business since April, which reflects broader improvement in the economy and trucking industry as well as our business performance from the implementation of our Navistar 4.0 strategy.”
The company listed under its accomplishments in 2020 the launch of its International HX severe-service truck series.
It also pointed to plans to announce a new product every six months for the next three years.
Rendering of the new Navistar manufacturing facility in San Antonio, Texas. (San Antonio Economic Development Foundation via YouTube)
In the quarter, it announced a hydrogen fuel cell development project with Cummins. It broke ground on capital investments in a San Antonio truck plant and an engine plant in Huntsville, Ala.
Meanwhile, chargeouts for Classes 6-8 trucks and buses in the United States and Canada were 13,200 compared with 20,200 in fourth-quarter 2019.
Chargeouts are defined as trucks that have been invoiced to customers. Units held in dealer inventory primarily represent the difference between retail deliveries and chargeouts.
The truck segment in the quarter posted a net loss of $10 million compared with a profit of $86 million a year earlier. Revenue was $1.5 billion, a 30% decrease compared with a year earlier.
At the same time, its severe-service market share rose 1 percentage point to 15.8%.
An LT Series Truck. (Navistar International Corp.)
The parts segment notched a profit of $129 million compared with $161 million a year earlier. Revenue was $496 million, a 9% decrease from fourth-quarter 2019.
Financial services recorded a quarterly profit of $14 million, down from $30 million a year earlier. Revenue fell 34% to $47 million.
For fiscal 2020, Navistar reported a net loss of $347 million, or a loss of $3.48 per diluted share, compared with net income of $221 million, or $2.22 in the 2019 period.
Annual revenue fell to $7.5 billion compared with $11.2 billion a year earlier.
The company ended the year with 100 days of inventory on hand. The normal range is 80-120 days.
It concluded the year with manufacturing cash of $1.75 billion.
Navistar did not schedule an earnings call due to its pending merger with Traton SE.
In related news, Navistar announced it restructured its entire commercial business, responsible for selling and servicing International trucks, IC Bus vehicles and Navistar’s aftersales products and services, into one integrated organization.
Friedrich Baumann, president of sales, marketing and aftersales, is responsible for leading the new organization.
Baumann joined Navistar in April 2018 as senior vice president of strategy and planning after a 24-year career at Daimler Trucks North America. In March 2019, he was named Navistar’s president for aftersales before being appointed to his new and expanded role.
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