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Navistar posts big 4Q loss on tax expense, charges

LISLE, Ill. (AP) -- Navistar International Corp.'s shares plunged Wednesday after the truck maker posted a fiscal fourth-quarter loss on weaker revenue and a major tax expense.

The company, based in Lisle, Ill., is in the midst of a turnaround effort after struggling with several quarters of losses. It is facing intense pressure from noted investor Carl Icahn's firm and others to improve its performance.

Navistar posted a loss of $2.77 billion, or $40.13 per share, for the period. That compares with net income of $255 million, or $3.48 per share, in the same quarter last year. The recent quarter's loss was driven primarily by a $2 billion tax expense, or $28.59 a share, and $252 million in charges for warranty expenses, cost-reduction actions, restructuring and penalties.

Revenue fell 24 percent to $3.28 billion on lower sales, adjustments to pre-existing warranties and charges tied to cost-reduction actions.

Analysts polled by FactSet expected a loss of $1.54 per share, excluding one-time charges, on revenue of $3.15 billion.

Navistar CEO Lewis Campbell said that the company has made significant progress on its turnaround and said the "complexity" of the fourth-quarter's results reflect those actions necessary for the transition period. He said the company had higher costs than anticipated during the period to resolve some remaining engine issues covered under customer warranties.

Navistar shares fell $1.93, or 8.5 percent, to close at $20.92. The stock has lost more than half its value since February.