Navistar posts wider 2nd-qtr loss, sales plunge
Navistar International reports larger 2nd-qtr loss absent tax gain, says sales fell 23 percent
LISLE, Ill. (AP) -- Truck and engine maker Navistar International Corp. on Monday posted a wider loss for its fiscal second quarter compared with a year ago, when it recorded a large income tax gain.
Navistar also said its sales continued to decline, as demand decreased and the company kept losing market share as it transitions to a new emissions technology. Navistar began a cost-cutting drive in 2012 as its sales went into a slump.
The company said its revenue fell 23 percent from last year. In the second quarter of 2012, the company took a loss, but its results included a $181 million gain related to deferred tax assets in Canada.
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 company said it lost $4.39 per share from continuing operations in the latest quarter.
Revenue fell to $2.53 billion from $3.26 billion.
Analysts, on average, were expecting a loss of $1.14 per share, on $2.84 billion in revenue, according to FactSet.
Navistar said it reduced its selling and general expenses by $60 million and engineering and product development costs by $32 million compared with a year ago. While industry demand and market share decreased, Navistar said its engine sales in South America improved.
Shares of Navistar fell 51 cents to $33.80 in aftermarket trading following the results. The stock closed the regular session down 35 cents at $34.31.
