LISLE, Ill. – Navistar International posted a first quarter loss of US$248 million due to lower sales volumes and weaker military demand.
The loss was more than double its Q12013 loss of $123 million.
“We signaled that this would be a tough quarter due to our mid-range product transition, the ongoing reduced sales in our military business, and because the first quarter, historically, represents the weakest operational period of the year for us. Given all this, we are encouraged we hit our cash and adjusted EBITDA guidance,” said Troy A. Clarke, Navistar’s president and chief executive officer. “Clearly, we have more hard work to do to rebuild our market share and further reduce our costs, but we continue to make progress on our Drive to Deliver, and we feel we’re off to a solid start in 2014.”
Navistar says it achieved a Class 6/7 retail share of 22% and a Class 8 share of 18% in January, marking its strongest performance in the past six months.
Its order backlog finished the quarter 56% higher than the same time last year, Navistar announced. The truck maker is expecting to achieve cost savings by moving mid-range engine production to Melrose Park, Ill. from its plant in Huntsville, Ala.