Navistar International Corp. (NYSE: NAV) reported first-quarter fiscal 2016 results before markets opened Tuesday. The heavy truck and engine maker reported a net loss per share of $0.40 on revenues of $1.77 billion. In the same period a year ago, Navistar reported a loss of $0.52 on revenue of $2.42 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.69 and $2.07 billion in revenue.
The revenue decline reflects lower volumes in Navistar’s core U.S. and Canadian markets, due to softer industry conditions; lower volumes in Mexico and export markets, reflecting a stronger U.S. dollar; and lower engine volumes in Brazil, due to ongoing weak economic conditions in that country. Additionally, one-quarter of the year-over-year decline was due to the discontinuation of the company’s Blue Diamond Truck joint venture in mid-2015.
The company’s CEO said:
Despite a lower revenue base, we continued to unlock value by significantly improving adjusted EBITDA through managing and optimizing our costs. We are encouraged by our Q1 performance and remain on track to achieve our goals of returning to profitability and generating manufacturing free cash flow in 2016.
The company revised its full 2016 fiscal year guidance to a range of $9.0 billion to $9.5 billion and narrowed its adjusted EBITDA range to $600 million to $650 million. The company continues to forecast that it will be profitable and cash-flow positive in its manufacturing by the end of 2016.
Among other troubles, Navistar is dealing with falling demand for commercial trucks. High inventory levels are another weight on the company. It hopes to introduce a new product every six months on average, completely refreshing the product line by 2018.
Shares traded down about 11% late Tuesday morning, at $10.46 in a 52-week range of $5.78 to $31.28. Thomson Reuters had a consensus analyst price target of around $12.22 before the results were announced.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.