Navistar Posts Loss In Q2, Revenues Down 5%; Maintains 2017 Guidance

(RTTNews) - Navistar International Corp. (NAV) reported a second-quarter net loss of $80 million, or $0.86 per share, compared to net income of $4 million, or $0.05 per share, prior year. On average, 14 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.04 for the quarter. Analysts' estimates typically exclude special items. Second-quarter adjusted EBITDA was $65 million, compared to $187 million, previous year. Navistar said higher used truck losses primarily resulting from a $60 million increase to the used truck reserve for the company's legacy MaxxForce 13 used truck inventory was the largest contributor to the year-over-year decline.

Second-quarter revenues were $2.1 billion, down five percent compared to $2.2 billion, prior year. The company said the decrease primarily reflects lower volumes in the company's Core (Class 6-8 trucks and buses in the United States and Canada) market, where chargeouts were down five percent, but higher than industry Core market volumes, which were down 13-percent year-over-year. Analysts expected revenue of $2.07 billion, for the quarter.

The company reiterated its 2017 guidance: retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be in the range of 305,000 units to 335,000 units; revenues are expected to be similar to 2016; and adjusted EBITDA is expected to be higher than 2016.