Tags: Navistar | Loss | Earnings | Outlook

Navistar Narrows Loss, Raises Industry Outlook

Wednesday, 03 Sep 2014 08:25 AM

Navistar International Corp. posted a smaller-than-expected quarterly loss on Wednesday, helped by a rebound in North American demand for its commercial vehicles as well as lower warranty costs stemming from its failed proprietary engine technology.

Navistar reported its first pretax quarterly profit from continuing operations since 2011 and raised its forecast for industry sales of the biggest commercial trucks in the United States and Canada for fiscal 2014.

It said it believes customers in those countries, which are critical for Navistar, will buy between 235,000 to 240,000 of the big rigs, up from a previous forecast of 225,000 to 235,000 trucks.

In presession electronic trading on the New York Stock Exchange, Navistar shares were up about 4 percent to $40.

The suburban Chicago-based maker of trucks, buses and military vehicles said its loss narrowed to $2 million, or 2 cents a share, for the fiscal third quarter ended July 31, from $247 million, or $3.06 a share, during the comparable quarter last year.

Sales were flat at $2.8 billion.

Analysts, on average, expected Navistar to post a loss of 66 cents a share, according to Reuters estimates.

The company said ongoing efforts to pare overhead and to restructure operations paid off during the quarter, in the wake of a costly and unsuccessful bid to develop a novel emission-reduction system. Structural costs fell $86 million, or 21 percent.

While warranty costs related to the emissions technology continued to weigh on results, they are taking a smaller and smaller bite out of the bottom line as time goes, the company said.

Navistar said outlays on warranty-related repairs fell 22 percent in the third quarter. So far this year, the company has spent $65 million on the claims, down from $252 million during the comparable period in 2013.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Companies
Navistar International Corp.posted a smaller-than-expected quarterly loss on Wednesday, helped by a rebound in North American demand for its commercial vehicles as well as lower warranty costs stemming from its failed proprietary engine technology. Navistar reported its...
Navistar, Loss, Earnings, Outlook
295
2014-25-03
Wednesday, 03 Sep 2014 08:25 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved