Navistar's revenues for fourth quarter ended 31 October was down 13.46% to US$2.75bn compared with $3.18bn in 2012. Its loss from continuing operations before income taxes for the period narrowed to $357m compared with $557m in 2012. The net loss for the period lowered to $154m from $2.76bn in 2012.
The company's revenues for fiscal year ended 31 October was down 15.25% to $10.62bn compared with $12.53bn. Its loss from continuing operations before income taxes for the period narrowed to $974m compared with $1.11bn in 2012. The net loss for the period lowered to $844m from $2.96bn in 2012.
"Operationally, we hit our plan this quarter, and we ended the year with an order backlog that is up 26% compared to this time last year. Those are just two examples of the continued progress we are making on our Drive to Deliver turnaround plan," said Troy Clarke, Navistar's president and chief executive officer. "During the quarter, we strengthened our cash position, continued to reduce structural costs, completed our on-highway Class 8 transition to SCR emissions technology, and progressed with our medium-duty product transition launches, resulting in 500 medium duty SCR trucks and buses built this month, as planned."
"Clearly, we are disappointed that our previous engine strategy continues to negatively impact us in the form of additional warranty expense, but we will continue to stand behind our products and manage this issue as these engines work their way through the standard and extended warranty cycles," Clarke said. "We're not letting it overshadow the strong progress we've made to fundamentally change Navistar's operations and culture in 2013. We still have a lot of hard work ahead of us, but we are pleased to be entering 2014 in a much stronger position than we were one year ago."
Navistar is forecasting a Class 8 industry of 220,000 to 230,000 retail sales in the US and Canada for its fiscal year 2014. It expects to generate an additional $175m in structural cost savings in fiscal year 2014, and projects its capital expenditures will be similar to 2013 spending. The company expects to end first quarter 2014 with manufacturing cash and marketable securities between $1bn and $1.1bn.
"Traditionally, our first quarter represents the low period of the year as volumes are lower due to the Thanksgiving and winter break downtimes, which is compounded this year by significantly lower military sales and the late-in-the-quarter ramp up of our Cummins ISB engine offering in our medium-duty trucks and buses," Clarke said. "However, we anticipate stronger year over year performance starting in the second quarter, driven by higher volumes in truck, parts and our global operations and slightly improved pricing, coupled with ongoing structural and material cost improvement."