Navistar losses increase as sales plunge

June 11, 2013 9:53:28 AM



LISLE, Ill. -- Truck and engine maker Navistar International Corp. on Monday posted a wider loss for its fiscal second quarter compared with a year ago, when it recorded a large income tax gain. 


Navistar also said its sales continued to decline, as demand decreased and the company kept losing market share as it transitions to a new emissions technology. Navistar began a cost-cutting drive in 2012 as its sales went into a slump. 


Navistar operates an assembly facility in West Point. 


The company said its revenue fell 23 percent from last year. In the second quarter of 2012, the company took a loss, but its results included a $181 million gain related to deferred tax assets in Canada. 


For the quarter ended April 30, Navistar lost $374 million, or $4.65 per share. In the year-ago period, it posted a loss of $172 million, or $2.50 per share. The company said it lost $4.39 per share from continuing operations in the latest quarter. 


Revenue fell to $2.53 billion from $3.26 billion. 


Analysts, on average, were expecting a loss of $1.14 per share, on $2.84 billion in revenue, according to FactSet. 


Navistar said it reduced its selling and general expenses by $60 million and engineering and product development costs by $32 million compared with a year ago. While industry demand and market share decreased, Navistar said its engine sales in South America improved. 


Shares of Navistar fell 51 cents to $33.80 in aftermarket trading following the results. The stock closed the regular session down 35 cents at $34.31.