LISLE, IL — Navistar International Corp. on Thursday announced it narrowed its fiscal second quarter loss while revenue slipped.

The truck and engine manufacturer reported a net loss of US$64 million, or US$0.78 per diluted share, compared to a second quarter 2014 net loss of US$297 million, or US$3.65 per diluted share.

Revenues in the quarter were US$2.693 billion compared to US$2.746 billion a year earlier.

The performance is less than the average estimate of 11 analysts surveyed by Zacks Investment Research, which were expecting a net loss of US$0.17 per share. Seven analysts surveyed by Zacks expected revenue of US$2.88 billion.

Chargeouts for Navistar increased 38% over the previous quarter. These are defined as Class 6-8 trucks and buses in the U.S. and Canada that have been invoiced to customers, with the units held in dealer inventory.

“Our results reflect continued progress in improving enterprise-wide business operations and positive momentum in the North American industry,” said Troy A. Clarke, Navistar president and CEO “We continue to make solid improvements in our North American truck and parts businesses and are especially encouraged by the progress in our bus business as well as increased market share in our medium-duty business, where we saw significant improvement in sales to major rental and leasing fleets and strong results in dealer-led sales.”

Overall EBITDA (earnings before interest, taxes, depreciation and amortization) was US$85 million versus an EBITDA loss of US$119 million in the same period one year ago.

According to Navistar, the US$204 million improvement was driven by an increase in truck segment sales, favorable product mix and the continuation of lower warranty expense and cost reductions. Prior year results included US$149 million in asset impairment charges related to the company’s South American engine operations.

In this most recent quarter Navistar’s truck segment recorded a loss of US$51 million, compared with a year-ago second quarter loss of US$129 million.

The segment’s year-over-year improvement was driven by increased chargeouts, improved product costs and lower charges for adjustments to pre-existing warranties, according to the company, which it said reflect quality improvements in recent model years and continued efforts to reduce overall cost per repair.

The company provided guidance for its fiscal third quarter with EBITDA of US$125 million- US$175 million, excluding pre-existing warranty and one-time items.

It also projects a “continued strong North American industry” for fiscal year 2016 with retail deliveries of Class 6-8 trucks and buses in the United States and Canada to be in the same range as the current fiscal year, 350,000 to 380,000 units, with a stronger mix of school buses and medium-duty trucks.