Navistar International has announced a second quarter 2013 net loss of US$374m, or $4.65 per share, compared to a second quarter 2012 net loss of $172m ($2.50).
Manufacturing revenue in the quarter was $2.5bn, down 23% following a 14% drop in overall industry demand and lower market share during the company's "emissions strategy transition". This was partially offset by stronger volumes in the South America engine business.
"We are not satisfied with our overall financial results this quarter, but we are pleased with the continued progress we made in a number of areas on our turnaround plan," said president and CEO Troy Clarke. "We still face some significant, yet solvable challenges, primarily in the areas of higher pre-existing warranty costs for our earlier EPA 2010 emissions level engines, as well as in rebuilding sales and restoring market share."
- Truck recorded a loss of $109m, compared with a year ago second quarter loss of $45m. The segment's loss was mainly driven by a decline in traditional truck volumes due to lower industry conditions and the market share impact of the company's emissions transition, and $57m in adjustments to pre-existing warranty costs.
- Engine recorded a loss of $138m, compared with a year ago second quarter loss of $108m. The year over year decline was predominantly due to higher warranty spend and lower volumes.
- Parts booked profit of $91m, compared with a year ago second quarter profit of $41m.
- Financial Services recorded a profit of $19m, down from a year ago second quarter profit of $26m due to lower net interest margin, reflecting the decline in average finance receivables balances.