NAV Navistar International Corp

Truck maker Navistar International Corp.'s loss widened in its most recent quarter as revenue tumbled a worse-than-expected 11%.

The Lisle, Ill., company, which is struggling to gain market share at home and dealing with weakness in Brazil, said it will accelerate plans to cut structural, material and manufacturing costs.

Shares of Navistar, down 48% this year, tumbled 13% to $15.10 a share in premarket trading.

"We're not standing still and we continue to take actions to improve both the revenue and cost sides of the business," Chief Executive Troy A. Clarke said in a news release. "These actions will allow us to invest in key areas of the business, paving the way for Navistar to be profitable and cash-flow positive in 2016, and better positioned as the truck market comes off its peak."

Overall, Navistar reported a loss of $28 million, or 34 cents a share, compared with a year-earlier loss of $2 million, or two cents a share.

Profit in the prior-year period was helped by a $32 million benefit from the company's reassessment of warranty costs for products sold.

Losses from continuing operations were 37 cents in the quarter, compared with a loss of four cents a share a year earlier. Revenue slid 11% to $2.54 billion, as growth in truck, bus and parts sales was offset by lower exports and revenue declines in its global operations.

Analysts had expected a profit of eight cents a share and revenue of $2.75 billion.

Navistar is working through a lengthy corporate restructuring, as it faces a dismal truck market in Brazil and engine reliability issues that caused it to shed market share in North America to competitors.

The company has had little success so far in gaining share in the heavy-duty truck market. It remains in fourth place with about 13%, off its 15.4% goal for 2015.

Mr. Clarke said the company is on track to achieve its market-share goals for the year, as it sees improvement in medium, school bus and severe service trucks.

In the most recent quarter, the company saw a 5% increase in chargeouts for Class 6-8 trucks and buses in the U.S. and Canada from the year earlier.

The truck segment recorded a loss of $36 million compared with a year earlier loss of $3 million.

In the parts segment, profit grew 10% to $151 million, helped by margin improvement in commercial markets.

The global operations segment recorded a loss of $26 million, compared with a loss of $21 million a year earlier due to the downturn in Brazil. South American engine shipments were down 42% year-over-year, the company said.

Write to Chelsey Dulaney at chelsey.dulaney@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

September 02, 2015 08:35 ET (12:35 GMT)

Navistar (NYSE:NAV)
Historical Stock Chart
From Mar 2024 to Apr 2024

Navistar (NYSE:NAV)
Historical Stock Chart
From Apr 2023 to Apr 2024