LISLE, Ill. – Navistar International Corp. reported yesterday a loss of $62 million for the first quarter of 2017, an 87.9 percent drop from the same quarter last year, when the truck and engine OEM lost $33 million. Revenue decreased 5.7 percent to $1.66 billion from last year’s $1.77 billion, according to the company’s filing with the U.S. Securities and Exchange Commission.
The company cited weaker truck sales as a cause of the lower revenue.
“Our results are on track with our plan for the year, and demonstrate our ability to effectively manage costs at a time of persistent Class 8 industry headwinds,” said Troy A. Clarke, chairman, president and CEO. “Our order share continues to outpace our market share, which confirms our confidence in the retail share improvement to come. At the same time, we are rolling out a steady stream of new product introductions that are helping us generate new sales opportunities, and position us to take advantage of the anticipated Class 8 rebound in the second half.”
The company updated its 2017 guidance but generally stayed with previous predictions. Navistar stated that it expects similar revenue to 2016 with full-year adjusted EBITDA (earnings before interest, tax, depreciation and amortization) to exceed 2016. The company anticipates retail deliveries of Classes 6-8 trucks and buses in the US and Canada to total 305,000 to 335,000 units for the fiscal year 2017. Navistar said it continues with the “aggressive refreshment of its entire product line,” and has seen growth in remote diagnostics, with more than 270,000 subscribers to its OnCommand Connection platform.
Following very poor performance in recent years, mainly due to the necessity of scrapping its new diesel engine design, which was found to fall short of federal pollution guidelines, the company has made massive changes, including job and expense cuts. Navistar has closed some plants and is introducing several new truck models, and recently reported improved results.
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