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Navistar trims losses in fourth quarter

LISLE, Ill. — Navistar International posted a net loss of US$72 million in the fourth quarter on revenues of $3 billion.

During the same quarter last year, Navistar lost $154 million. Its revenues for the quarter were up 9.3% year-over-year.

“Our fourth quarter results – and the results for the entire fiscal year – reflect our continued progress improving business operations across the enterprise and positive trends in the North American industry,” said Troy A. Clarke, Navistar president and chief executive officer. “In 2014, we increased our production, charge-outs and order backlog; continued to reduce warranty spend; and achieved structural cost savings that further lowered our break-even point.”

The quarterly results reflect $60 million in restructuring costs. Navistar decreased its warranty spend by 22% in the quarter, compared to Q42013, as a result of “quality performance improvements, lower repair costs and a reduced population of legacy engines still in the warranty periods.”

The company grew its end-of-year backlog for Classes 6-8 trucks by 24% year-over-year.

The net loss for fiscal year 2014 was $619 million, compared to a net loss of $898 million in 2013.

“We continue to make the necessary changes to improve the company and we’re entering 2015 in a much stronger position than we were one year ago,” Clarke said. “We’ve restructured our core North American business, have the right products in place, and established the right leadership team.”

Looking ahead, Navistar forecasts Classes 6-8 retail deliveries of trucks and buses in the US and Canada to be in the range of 350,000-380,000 units in its 2015 fiscal year.

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