NEW YORK (AP) -- Shares of Navistar International Corp. sank Tuesday, a day after the truck and engine maker posted a wider loss for its fiscal second quarter compared with a year ago.
THE SPARK: The company's revenue fell 23 percent from last year as demand decreased and it kept losing market share amid a transition to a new emissions technology.
For the quarter ended April 30, Navistar lost $374 million, or $4.65 per share. In the year-ago period, it posted a loss of $172 million, or $2.50 per share. The loss in the previous years included a $181 million gain related to deferred tax assets in Canada.
The company said it lost $4.39 per share from continuing operations in the latest quarter. Analysts, on average, expected a loss of $1.14 per share, according to FactSet.
Revenue came in at $2.53 billion, below the $2.84 billion Wall Street expected.
THE BIG PICTURE: Navistar began a cost-cutting drive in 2012 as its sales went into a slump. But looking ahead, Citi analyst Manish Somaiya noted that management has guided to sequential improvement in the third quarter. Somaiya also said that overall the industry fundamentals appear healthy and that Navistar is a "show me" story with attractive earnings upside.
SHARE ACTION: Down $2.59, or 7.6 percent, at $31.67 in afternoon trading.
- Investment & Company Information