[Stay on top of transportation news: Get TTNews in your inbox.]
Navistar International Corp. reported a fiscal first-quarter net loss as well as a dip in revenue and market share gains for Classes 6-8 vehicles compared with a year earlier.
For the period ended Jan.31, the truck maker posted a net loss of $81 million, or a loss of 81 cents per diluted share, on revenue of $1.81 billion. That compared with a net loss of $36 million, loss of 36 cents, on revenue of $1.83 billion.
“We are starting 2021 on a strong note, as the adjusted earnings before interest taxes depreciation and amortization margin doubled (to 6.4% compared with 3.2% a year earlier), truck revenue returned to pre-COVID levels, and retail market share increased in each of our vehicle segments,” Navistar CEO Persio Lisboa said in a release.
Revenue for the truck segment was $1.23 billion compared with $1.24 billion a year earlier. The Lisle, Ill.-based company said its truck segment recorded charges of $49 million related to pre-existing warranties and $47 million related to the disposition of its Melrose Park, Ill., facility.
Navistar International Corp. is the holding company whose subsidiary Navistar Inc. produces the International brand of trucks.
It said its days of inventory has fallen from a high of about 145 days in May-June to 92 days in January. The normal range is 80-120 days.
The company reported its North American market share for Classes 6-8 rose to 13.4% compared with 11.6% a year earlier.
For the United States and Canada, Navistar in Classes 6-7 posted a 21.7% share compared with 20.3% in the year-earlier quarter.
Its Class 8 share rose 8.7% compared with 6.1% a year earlier.
Class 8 severe-service trucks notched a 15% share compared with 14% a year earlier.
Its combined Class 8 share was 10.4% compared with 8.5% a year earlier.
In the quarter, charge-outs for Class 8 trucks in its core North American markets improved 38% to 3,300, up from 2,400 a year earlier.
For its severe-service Class 8 models, charge-outs fell 31% to 2,000 compared with 2,900 in the 2020 quarter.
Fleets are investing in tech-based safety tools that inform and forewarn potential risk. But how do they condition and prepare drivers to respond to safety alerts? Find out as the RoadSigns Team speaks with Tom DiSalvi, VP of safety at Schneider National, and Charlie Mohn, director of product innovation at Drivewyze. Hear a snippet, above, and get the full program by going to RoadSigns.TTNews.com.
Charge-outs for its medium-duty trucks dipped 2% to 4,300 compared with 4,400 a year earlier.
Navistar defines charge-outs as trucks that have been invoiced to customers. Retail deliveries occur when customers take possession and register the vehicle. Units held in dealer inventory represent the principal difference between retail deliveries and charge-outs.
Navistar forecast North American Class 8 retail sales in 2021 of 268,800. That reflects a calendar year to fiscal year adjustment, and does not include other specialty truck original equipment manufacturers.
Parts revenue was $467 million, down from $493 million compared with a year earlier.
Global operations revenue increased to $95 million compared with $68 million a year earlier. The increase was primarily driven by higher engine volumes and parts sales in South American operations, according to the company.
Meanwhile, financial services profit fell to $12 million compared with $17 million in the 2020 quarter. Revenue dropped to $51 million compared with $57 million in the 2020 quarter.
The segment’s financing availability was $1.1 billion as of Jan. 31.
In the quarter, new lease funding proceeds were $26 million.
Other revenue-related results included truck contract manufacturing revenue rising to $109 million compared with $97 million a year earlier.
Used truck revenue rose to $58 million compared with $41 million in the 2020 period.
Extended warranty contracts climbed to $32 million compared with $25 million a year earlier.
Ahead of Navistar's San Antonio manufacturing plant launch, the company acquired a second property in the area. (Navistar)
Among the quarterly highlights:
In January, the company announced a collaboration with General Motors and OneH2 to bring a hydrogen truck ecosystem solution to the trucking industry. As part of the announcement, Navistar plans to make its first production model International RH Series hydrogen fuel cell vehicle commercially available in model year 2024.
Also, it acquired a second property in San Antonio that will house support functions for its under-construction 900,000-square-foot plant in the area that will produce Classes 6-8 vehicles, including new electric-powered trucks. The new property will also house a state-of-the-art truck validation center to test and validate components of the company’s growing electric truck business and a truck specialty center to provide post-production customization of vehicles to support customers’ business needs.
The company announced that progress related to its pending merger with Traton SE remains on track and it expects the merger will close in mid-2021. Germany-based Traton is Volkswagen AG’s heavy-truck business.
Want more news? Listen to today's daily briefing below or go here for more info: