LISLE, Ill. — Navistar narrowed its losses in the second quarter, to US$297 million on revenues of $2.7 billion.
The company says orders and retail market share for medium- and heavy-duty trucks were up sequentially and year-over-year. The truck maker also said it finished Q2 with an 82% increase in order backlog compared to a year ago.
“We continue to make progress with our ‘Drive to Deliver’ and we have seen a number of encouraging signs this quarter, including improvements in our market share and strong order backlog, positive trends in our warranty expense and spend, and higher than expected structural cost reductions,” said Troy A. Clarke, Navistar president and chief executive officer. “This is the third consecutive quarter where we’ve met or exceeded our EBITDA guidance and we have now met or exceeded our cash guidance for seven straight quarters.”
“We still have much work to do in our core North America operations as well as in Brazil, where we are taking actions to lower our breakeven point to offset the ongoing economic challenges in that country,” Clarke added. “Overall, we feel good about our steady gains and positive momentum.”
Navistar said its Class 6/7 retail market share was 26.4% for the second quarter, up from 17.3% in Q1 and 25.8% in Q213.
Combined Class 8 retail market share was 14.9% for the second quarter, up from 13.9% in the first quarters and 14.5% in Q213. Its combined Classes 6-8 truck and bus retail market share was 18.5% for the quarter.
Warranty spend meanwhile was down 13% year-over-year in the second quarter, the company said.
Navistar raised its Class 8 industry forecast for the US and Canada to 225,000-235,000 units.
“We saw our market share bounce back strongly in the second quarter and we look to build on this in the second half of our fiscal year,” Clarke said. “We also expect our financial performance will continue to build quarter-over-quarter, with third quarter results better than second quarter, and our fourth quarter performance better than the third quarter. We are progressing and building momentum.”
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