Author: Vitaliy Dadalyan

8 Sep by Vitaliy Dadalyan Tags:

Earnings Watch: Navistar Third Quarter Loss Grows, Revenue Declines

Navistar International Corp. (NYSE: NAV) released fiscal third quarter financials on Thursday morning showing its losses grew in the third quarter of the year while revenue fell 18%, following news on Tuesday that Volkswagen is taking a minority interest in the Illinois-based company.

The truck and engine manufacturer reported a net loss of $34 million, or 42 cents per share, for the three months ending July 31, compared to a third quarter 2015 net loss of $28 million, or 34 cents per share, as it faced what it called “tougher market conditions, particularly in the heavy segment.”

Revenue fell to $2.1 billion from $2.5 billion a year earlier, which the company mainly attributed to lower year-over-year chargeouts in the company's core markets, Class 6-8 trucks and buses in the U.S. and Canada, which was affected by softer industry conditions, primarily in the Class 8 market. (Chargeouts are typically defined as trucks that have been invoiced to customers, with units held in dealer inventory.)

A consensus forecast by analysts was expecting a loss of 14 cents per share with revenue of $2.18 billion.

Despite the wider loss, Navistar said it achieved $32 million in structural cost reductions during the third quarter, raising year-to-date structural savings to $145 million. Combined with product and purchasing cost savings, the company's total year-to-date costs savings exceed $300 million.

Third quarter 2016 earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $96 million versus $106 million in the same period one year ago. This more recent quarter included $36 million in adjustments, including $19 million of pre-existing warranty charges and $17 million in asset impairments and restructuring costs, compared to adjustments of $23 million in the third quarter of 2015.

Excluding these items, adjusted EBITDA was $132 million in the third quarter 2016 compared to $129 million in the same period one ...Read the rest of this story

7 Sep by Vitaliy Dadalyan Tags:

NAFA Gives Affiliate Members Voting Powers

The NAFA Fleet Management Association has given affiliate members the ability to vote and serve on its national board, the fleet management association announced.

The move broadens leadership opportunities with the association for professionals who are not directly involved in the management of fleet vehicles.

NAFA's members approved the move by a margin of nearly 15 to 1, with 93% of respondents voting in favor of the changes.

"This has been a long time coming," said Ruth Alfson, CAFM, NAFA's president. "NAFA's bylaws had remained virtually the same since the day NAFA was incorporated in 1957, so it is about time we recognized our affiliates as the valued partners they are. Besides that, though, this is the right strategic move for NAFA to make."

As part of the move, NAFA has made many changes to its bylaws. The changes redefine who qualifies as a member and supplier, and sets up a new membership category called regular member for individuals directly involved in fleet management. Other membership categories include associate members (formerly affiliates), honorary members, and retired members. Associate members can now hold up to five of the 13 board roles.

The move also creates a leadership advisory board to help direct NAFA's strategic efforts that replaces the former board of delegates and board of governors. The immediate past president will now be designated as the chair of the nominating committee.

NAFA will form a nominating committee later this month to select candidates for four open board seats. Eligible individuals will be able to submit their names to the committee for consideration.

The board election will take place in January, and the new board will take office in February. The board will then elect a new president, senior vice president, vice president, and secretary/treasurer. The sitting NAFA president will be named the immediate past president.

Related: NAFA I&E ...Read the rest of this story

7 Sep by Vitaliy Dadalyan Tags:

Commentary: How E-commerce and Millennials are Changing Retail and Trucking

<img width="150" src="http://www.automotive-fleet.com/fc_images/articles/m-hotline-graph-1.jpg" border="0" alt="

Source: U.S. Census Bureau, Advance Monthly Sales for Retail and Food Services, Seasonally Adjusted

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Source: U.S. Census Bureau, Advance Monthly Sales for Retail and Food Services, Seasonally Adjusted

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Retail sales are important – not just to the overall economy, but also to trucking – and the game is changing big-time, possibly thanks to an entire generation.

About two-thirds of U.S. economy is driven by retail sales. Compare that to around 12% for manufacturing. As for why it's important to trucking, surely you've heard the line, “If you bought it, a truck brought it.”

The good news is retail sales, including food service sales, were up 2.8% in July from a year earlier. The bad news is that when you compare July to the month before, sales were flat, following a second quarter in which sales increased at a 4.2% annual rate.

This could just be a blip, but others note this may be the beginning of a whole paradigm shift in American spending habits.

Online sales are booming, meaning the traditional patterns of distributing and selling goods isn't the only game in town. In the second quarter, e-commerce sales totaled $97.3 billion, up 4.5% from the first quarter. And e-commerce sales were up 15.8% while total retail sales moved up just 2.3%. E-commerce as a percent of total sales was 7.5% in the second quarter versus 6.6% a year earlier.

In other words, people are still spending. They just aren't doing it the same way they used to – and that has some retailers scared.

In August, department store giant Macy's said it would close around about 100 stores, cutting its footprint by around 15%, to strengthen its presence as an “omnichannel shopping destination.” The move was greeted with a thumbs-up by many analysts. Retailing behemoth Walmart recently bought online retailer Jet.com for $3.3 billion to increase its e-commerce presence and broaden its audience.

There's another way spending is changing. According to ...Read the rest of this story