Navistar swings to loss on lower truck sales

Persio Lisboa - Navistar

Navistar International Corporation (NYSE: NAV) reported a $36 million loss for the fiscal first quarter on Wednesday as truck sales across its lineup fell along with financing and parts revenue.

The Lisle, Illinois-based truck maker said it was “carefully reviewing and evaluating” an unsolicited offer from its alliance partner TRATON SE, the truck-making holding company of Volkswagen AG, for the remaining 83% of the company TRATON does not already own.

Navistar’s net loss of $36 million, or $0.36 per diluted share, compared to first quarter 2019 net income of $11 million, or $0.11 per diluted share.

Revenues in the November-January quarter were $1.8 billion compared to $2.4 billion in the first quarter last year. A 39% decrease in the Navistar’s Class 6-8 truck and bus business in the United States and Canada drove the poorer results.

This is a developing story. Come back to later for more following the company’s call with analysts.

First quarter 2020 adjusted earnings before interest, taxes depreciation and amortization (EBITDA) was $59 million, compared to $173 million in the first quarter of  2019.  

“While revenues are down year-over-year, these results are in line with the guidance we provided in December as the industry works through a transition period,” said Navistar CEO Troy Clarke, who is also chairman and president.  

“As market conditions improve throughout the year, we have confidence that the company is positioned to build upon its first quarter performance and take advantage of what we expect to be a stronger second half,” Clarke said.

In January Navistar received final approval of the MaxxForce exhaust gas recirculation (EGR) engine class action settlement in the U.S. The company funded the cash portion of the settlement with $85 million in February.