LISLE, Ill. – Navistar International reported a Q2 loss of US$38 million, on falling revenues of $1.9 billion, a 36% decline year-over-year.
The company said the decrease was primarily due to the impact of the Covid-19 pandemic, resuling in lower volumes in its core Classes 6-8 markets.
“Like a number of businesses, our company has been impacted by the Covid-19 pandemic and that is reflected in our results,” said Troy A. Clarke, Navistar chairman, president and chief executive officer. “Our team has done a tremendous job managing the business throughout this challenging time, and we have taken a number of steps to position the company to weather this crisis.”
“We are focused on preserving cash and reducing cost, but not at the risk of sacrificing our future,” added Walter Borst, Navistar chief financial officer. “We remain steadfast in pursuing Navistar 4.0, and while some programs and expenditures have been delayed, they have not been cancelled. It’s important that we continue to invest in our company, even in these difficult times, to ensure our long-term success.”
The company said it remained largely in operation through the quarter, though production facilities experienced limited disruptions. Its parts distribution centers remained open, and its dealer network stayed operational.
“As an essential business, we took early actions to protect our people so that we could fulfill our duty to keep our assembly plants running and parts distribution centers in operation to serve our customers and dealers who are keeping the economy moving by delivering essential goods and services to our communities,” said Persio Lisboa, chief operating officer. “Throughout the quarter, we have worked closely with our suppliers to overcome significant disruptions to the flow of parts to our facilities and have been moderately successful in maintaining operations.”
The company supported customers by launching its International Cares initiative, offering no payments for six months.
“There are several theories as to the shape of economic recovery, but we have plans in place to respond accordingly,” said Clarke. “Recovery will likely be gradual as businesses reassess operating plans to return to a ‘new normal,’ but this ‘new normal’ will still require trucks. The actions we’ve taken over the past few months have us in position to succeed, no mater the shape of recovery.”
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