LISLE, IL – The truck and engine manufacturer Navistar International managed to cut back on its losses in its most recent fiscal quarter while they were down significantly for the 2015 fiscal year, both ending on Oct 31.

Its fourth quarter 2015 net loss of US$50 million, or US$0.61 per diluted share, compared to a fourth quarter 2014 net loss of US$72 million, or US$0.88 per diluted share.

Revenues in the quarter were US$2.5 billion compared to US$3 billion a year earlier.

Fourth quarter 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) was US$86 million versus EBITDA of US$66 million in the same period a year ago. This quarter included $69 million in restructuring-related and impairment charge and $40 million in pre-existing warranty adjustments

“We delivered on our adjusted EBITDA end-of year run rate target of eight percent or better, thanks to a favorable mix of truck sales and record parts profitability in our core North America market in the fourth quarter,” said Troy A. Clarke, Navistar president and chief executive officer. “We also benefited from our continued focus on cost management across our operations, marked by a US$74 million improvement in structural costs in the quarter.”

As for full-year fiscal 2015 results, Navistar reported a net loss of US$184 million, or US$2.25 per diluted share, down significantly from a net loss of US$619 million, or US$7.60 per diluted share, for fiscal 2014.

Revenue for fiscal 2015 was US$10.1 billion, down from US$10.8 billion a year earlier.

Fiscal year 2015 adjusted EBITDA was US$494 million versus US$306 million for fiscal 2014.

Chargeouts in the company’s core North America market increased by 3,500 units, or six percent, in 2015, reflecting an 18 percent increase in Class 6/7 medium duty trucks, a 10 percent increase in school buses, and a seven percent increase in Class 8 severe service, partially offset by a four percent decline in Class 8 heavy trucks.

Total market share for Class 6-8 and bus for the year was 16 percent.

Operationally, the company reduced its total costs by more than US$300 million in 2015, including US$114 million in structural cost reductions, with the remainder coming from reduced material and logistics spending and lower manufacturing costs, according to Navistar.

“For the third consecutive year, we generated around US$200 million in adjusted EBITDA improvement, and we expect this improvement trend to continue in 2016,” Clarke said. “We are building the best products we’ve ever built, and we are winning back customers. We have identified and begun implementing actions to further lower our material spend and structural costs, while driving greater efficiencies in our manufacturing operations. As a result, we expect to build on our 2015 progress, and our goal is to achieve profitability and be free cash flow positive in 2016.”

In Navistar’s truck segment business during the 2015 fiscal fourth quarter it recorded a loss of US$36 million, compared with a year-ago loss of US$40 million. For the fiscal year 2015, the truck segment recorded a loss of US$141 million, compared with a fiscal year 2014 loss of US$380 million.

For the fiscal fourth quarter of 2015, the parts segment recorded record profits of US$163 million, compared to a year-ago fourth quarter profit of US$150 million. For the fiscal year 2015, the parts segment recorded record profits of US$592 million, compared to a fiscal year 2014 profit of US$528 million.

The global operations segment for the fourth quarter 2015 recorded a loss of US$27 million, compared to a year-ago fourth quarter loss of US$56 million. For the 2015 fiscal year, the global operations segment recorded a loss of US$67 million compared to a year-ago fiscal year loss of US$274 million.

The financial services segment during the fiscal fourth quarter of 2015 recorded a profit of US$26 million, the same from a year earlier, while fiscal 2015 profit was US$98 million, up slightly from US$97 million a year earlier.

Navistar also released the following guidance for its 2016 fiscal year that started on Nov. 1.

• Forecasts retail deliveries of Class 6-8 trucks and buses in the U.S. and Canada will be in the range of 350,000 to 380,000 units industry-wide.
• Full-year 2016 revenues of US$9.5 – US$10 billion.
• Full-year 2016 adjusted EBITDA of US$600 – US$700 million.