March 03--Lisle-based Navistar International on Tuesday said it narrowed its first-quarter loss because of higher sales and lower warranty costs.
Here's how the quarter and year played out:
Net loss: The loss for the quarter ended Jan. 31 was $42 million, or 52 cents per share, an improvement from a loss of $248 million, or $3.05 per share, a year earlier.
Revenue: Revenue rose 9.6 percent to $2.4 billion, up from $2.2 billion.
Quote you on that: "Our first-quarter results reflect our continued momentum and ongoing progress in improving the fundamentals of our business," CEO Troy Clarke said in a statement.
Analyst expectations: Analysts expected a loss of $1.24 per share on revenue of $2.6 billion, according to FactSet.
Background: The maker of trucks and engines is in the midst of a turnaround plan that has included closing plants, job cuts, selling business units and outfitting some trucks and buses with engines from competitor Cummins.
The company also has worked with Cummins to make engines that meet 2010 federal emissions standards. Navistar has battled warranty charges tied to engines that failed to meet those emission standards, a loss of military business and a decline in sales. Navistar is focused on recuperating market share lost during the last two years, though its efforts have been slower than expected.
Forecast: Navistar expects industry sales of medium- and heavy-duty trucks, including buses, to be in a range between 350,000 to 380,000 units, up from 342,000 units in 2014. Navistar said the recent dip in oil prices helped boost sales of commercial vehicles but added that sales in segments tied to oil and gas applications slowed. However, it said, that segment is not a big piece of its business.
When will its truck business report a profit? "We are getting pretty close," Walter Borst, Navistar chief financial officer, said in response to a question from an analyst on a conference call. "We can't wait to report out a quarter where it's positive, but I think we'll both have to wait to see exactly when that's going to be."
The truck segment reported a loss of $18 million in the first quarter, down from a loss of $208 million a year ago.
acancino@tribpub.com
