Navistar International Corporation today announced a first quarter 2020 net loss of $36 million, or $0.36 per diluted share, compared to first quarter 2019 net income of $11 million, or $0.11 per diluted share.
Revenues in the quarter were $1.8 billion compared to $2.4 billion in the first quarter last year. The decrease was primarily driven by a 39 percent decrease in the company’s Core volumes, which represent its sales of Class 6-8 trucks and buses in the United States and Canada.
First quarter 2020 EBITDA was $55 million, compared to $96 million in first quarter 2019. Adjusted EBITDA in first quarter 2020 was $59 million versus $173 million a year ago.
Adjusted net income for the quarter was a loss of $33 million compared to a gain of $57 million in the first quarter last year.
Navistar finished first quarter 2020 with $1 billion in consolidated cash and cash equivalents and $977 million in manufacturing cash and cash equivalents.
“While revenues are down year-over-year, these results are in line with the guidance we provided in December as the industry works through a transition period,” said Troy A. Clarke, Chairman, President and CEO. “Throughout the quarter, we implemented actions to lower costs, yet the results were impacted by lower volumes.”
During the quarter, the company received an unsolicited proposal from its alliance partner TRATON regarding a potential transaction to acquire the company. Navistar’s Board of Directors is carefully reviewing and evaluating the proposal to determine the course of action it believes is in the best interest of the company and its stakeholders.
Also in the quarter, Navistar received final approval of the MaxxForce EGR engine legal settlement in the U.S. As a result, the company funded $85 million in February, relating to the cash portion of the settlement.
Late last month, the company broke ground on the expansion of its Huntsville, Ala. engine plant. The company will be investing $125 million in the manufacturing facility to produce next-generation, big-bore powertrains being developed with Navistar’s global alliance partner TRATON. The expansion will add 110,000 square feet and 145 skilled manufacturing jobs to its existing facility.
“As market conditions improve throughout the year, we have confidence that the company is positioned to build upon its first quarter performance and take advantage of what we expect to be a stronger second half,” said Clarke.
The company reiterated both its 2020 industry guidance and full-year financial guidance, pending any change to operations from the coronavirus.
- Industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecasted to be in the range of 335,000 to 365,000 units, with Class 8 retail deliveries between 210,000 and 240,000 units.
- Revenues are expected to be in the range of $9.25 billion to $9.75 billion.
- Adjusted EBITDA is expected to be in the range of $700 million to $750 million.
Click here to see full release:
SOURCE: Navistar
