Fourth Quarter Loss Trips Navistar International Corp (NYSE:NAV) To 52-Week Low


Dallas, Texas 12/17/2014 (FINANCIALSTRENDS) – Navistar International Corp (NYSE:NAV) reported a net loss of $72 million or $0.88 per diluted share in 4Q14, undermining the analysts expectation of $0.15 per share in net profit. However, on a year-over-year basis, net loss narrowed significantly from $154 million or $1.91 per diluted share in 4Q13.

Investors didn’t take much time to punish the lower-than-expected results and pulled the stock down by nearly 17%. More than 4.58 million shares changed hands on Tuesday compared to its average trading volume of 550,339 shares.

Quarterly Highlights

Navistar International Corp (NYSE:NAV) reported 4Q14 revenues of $3 billion, increasing 9.3% from prior year period. The North America Parts and Financial Services contributed profit of $143 million and $26 million, respectively, during the fourth quarter.

The North America Truck segment recorded a loss of $55 million in 4Q14, improving from a loss of $355 million in 4Q13. The improvement was primarily due to higher truck volumes, non-repeat of certain impairment charges and declining warranty expense and structural costs.

The Global Operations loss widened to $33 million in 4Q14 from $6 million in 4Q13, because of decline in South American engine volumes and certain charges related to the Brazilian truck business.

Management Discussion

Troy A. Clarke, President and CEO of Navistar International Corp (NYSE:NAV), noted that the company’s 4Q14 and FY14 results reflect its progress toward improving business operations across as well as positive trends in the North American industry. Navistar’s production and order backlog improved during FY14 and it also achieved structural cost savings and reductions in warranty spend.

Clarke expressed that the company is much better positioned to enter 2015 than it was a year ago. The company has also completed restructuring of its North American business, where the leadership is all set to leverage the industry uptrend with right products mix.

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