Navistar logs Q2 loss from COVID-19 impact on truck production

Navistar International Corp. (NYSE: NAV) reported a $38 million loss in its fiscal second quarter because of production suspensions and supply chain issues related to the COVID-19 pandemic.

The loss was narrower than the $48 million in red ink reported a year ago when the truck maker took a $159 million charge to settle complaints over defective engines in trucks built in the previous decade.

The loss, which amounted to 38 cents per diluted share, was three cents less than a consensus of analysts, who projected a loss of 41 cents per diluted share.

Revenues in the quarter were $1.9 billion, down 36% from nearly $3 billion in the year-ago quarter. New vehicle deliveries of its core Class 6-8 trucks and buses in the United States and Canada were nearly 40% below a year ago, primarily due to COVID-19.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $61 million, compared to $55 million in the second quarter of 2019.  

Navistar cut costs and issued $600 million in new debt during the quarter to leave it with $1.5 billion in cash and marketable securities as of April 30.

“Recovery will likely be gradual as businesses reassess operating plans to return to a ‘new normal,’ but this ‘new normal’ will still require trucks,” said Navistar Chairman, CEO and President Troy Clarke. “The actions we’ve taken over the past few months have us in position to succeed, no matter the shape of [the] recovery.”