Earnings Watch: Navistar Losses Nearly Double from Year Earlier
Navistar International Corp. on Tuesday announced its financial losses in the first quarter of 2017 nearly doubled from the same time a year ago due to lower truck volume and softer Class 8 truck sales.
The truck and engine maker reported a net loss of $62 million, or 76 cents per share, greater than a consensus estimate from a poll of analysts, who were forecasting a 45 cents per share loss. This compares to a first quarter 2016 net loss of $33 million, or 40 cent per share.
Revenue in the most recent quarter totaled $1.7 billion, in line with Wall Street expectations, but a decline of 6% compared to $1.8 billion in the first quarter last year. The quarter marked the company’s eighth consecutive decline in quarterly revenue, according to Reuters.
First quarter 2017 earnings before interest, taxes, depreciation and amortization (EBITDA) was $63 million, compared to first quarter 2016 EBITDA of $82 million. This most recent period included favorable net adjustments of $8 million, primarily resulting from a reversal of pre-existing warranty accruals.
“Our results are on track with our plan for the year, and demonstrate our ability to effectively manage costs at a time of persistent Class 8 industry headwinds,” said Troy A. Clarke, chairman, president and CEO. “Our order share continues to outpace our market share, which confirms our confidence in the retail share improvement to come.”
Truck-segment first quarter 2017 net sales decreased $105 million, or 9%, primarily due to lower core (Class 6-8 trucks and buses in the United States and Canada) truck volumes “as a result of softer industry conditions, the end of CAT-branded units sold to Caterpillar, and the sale of Pure Power Technologies, both of which occurred in the second quarter of 2016.”
During the most recent quarter, Navistar’s truck segment loss increased to $69 …Read the rest of this story
