Navistar CFO to leave; company’s defense plant to 'idle' production July 5
In other Navistar news, the company announced that it will be suspending production at its West Point, Miss., plant. July 5 will be the last day of production at the plant.
The Trucker News Services
Navistar International Corp. CFO Andrew Cederoth will leave by the end of this month in the company’s latest management upheaval, Reuters reported.
Navistar treasurer James Moran will take Cederoth’s place until a permanent replacement is found.
Cederoth had served as chief financial officer since 2009 and officials said his resignation was part of a planned transition to a new CFO.
"It is likely the new leaders/board are looking for a clean slate from which to drive change and improvement in the business model," Robert W. Baird & Co analyst David Leiker said.
Chief Executive Daniel Ustian left in August following Navistar’s diesel engine debacle in which its exhaust gas recirculation (EGR) engines failed to meet environmental regulations, incurring fines.
The company named former Chief Operating Officer Troy Clarke CEO in March.
Navistar's turnaround plan received another jolt after it reported a bigger second-quarter loss earlier this month as it continued to book higher warranty costs and lost sales while moving to a new engine technology, Reuters said.
It was the company's sixth quarterly loss in a row.
In other Navistar news, the company announced that it will be “idling“ production at its West Point, Miss., plant effective July 5.
The decision was reportedly because of reductions in the federal budget and a “challenging defense environment,” Zack’s Equity Research reported. “Navistar Defense is idling production at the West Point, Mississippi, facility, effective Friday, July 5,” said a company spokesman.
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