Navistar posts loss, says goal is profitability in 2016

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[December 17, 2015]  By Nick Carey

CHICAGO (Reuters) - Truckmaker Navistar International Corp posted its 13th consecutive quarterly loss on Thursday amid declining revenue but said that it plans to further cut costs in 2016 and return to profitability.

The company said sales declined for heavy trucks, rose for school buses and medium-sized trucks in its core U.S. and Canadian markets, but exports slowed, in its fiscal fourth quarter ended Oct. 31.

The Lisle, Illinois-based company reported its quarterly loss narrowed to $50 million, or 61 cents per share, from $72 million, or 88 cents, a year earlier.

Revenue fell 17 percent to $2.49 billion from $3 billion. Analysts expected $2.53 billion.

Despite the loss, cash on hand increased to $912 million from $497 million a year earlier.

The company forecast fiscal 2016 revenue in a range from $9 billion to $10 billion. Analysts predicted $9.96 billion.

"We have identified and begun implementing actions to further lower our material spend and structural costs, while driving greater efficiencies in our manufacturing operations," Chief Executive Officer Troy Clarke said in a statement. "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."

Year to date, Navistar's shares have fallen nearly 76 percent.

The U.S. Securities and Exchange Commission has sent Navistar subpoenas since 2012 as part of a probe into whether the company misstated its efforts to win regulatory certification that its engines comply with clean air laws.

Navistar has been struggling with high warranty costs for an emission reduction system that failed to meet regulatory standards in 2012.

(Editing by Jeffrey Benkoe)

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