US: Navistar posts Q2 loss of US$374m

By Graeme Roberts | 12 June 2013

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."

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