Navistar slashes losses in third quarter

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LISLE, Ill. — Navistar International posted a $2-million net loss in the third quarter, a vast improvement over the company’s $247-million net loss over the same period last year.

The company also announced it achieved a positive quarterly income before income taxes for the first time since 2011. It also increased chargeouts for Classes 6-8 trucks and buses in the US and Canada by 10% year-over-year and finished the quarter with a 54% increase in order backlog y-o-y.

“Our third quarter results reflect a number of positive trends including increased production, improvements in warranty charges, cost reductions that further lowered our breakeven point and our continued efforts to manage cash,” said Troy A. Clarke, Navistar president and chief executive officer. “While we have work ahead of us to grow the business, improve our market share and further reduce our cost of doing business, we do take some satisfaction in achieving positive income from continuing operations before taxes – an important financial milestone we’ve not realized in our quarterly performance since 2011.”

Navistar saw its warranty spend improve in the third quarter, down 22% year-over-year, which the company attributes to quality performance improvements, lower repair costs and a reduced population of trucks still in the warranty periods.

“Regaining market share remains a top priority and while we still have work to do, we are excited by the favorable feedback we receive from those customers who have bought and experienced our new trucks,” Clarke said. “With additional offerings for medium-duty and severe service applications, we’re very encouraged with our future prospects.”

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