Navistar International Corporation
) declined 5.8% to $37.16 on Dec 20, 2013, post the announcement
of results for the fourth quarter of fiscal 2013 (ended October
31, 2013). The company recorded adjusted net loss of $145 million
or $1.80 per share in the quarter versus $651 million or $9.43
per share in the comparable period a year ago. The loss per share
was wider than the Zacks Consensus Estimate of a loss of $1.55 a
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On a reported basis, Navistar recorded a loss of $154 million or
$1.91 per share in the,quarter, against the loss of $2.8 billion
or $40.13 per share reported a year ago.
Navistar's revenues fell 13.5% year over year to $2.75 billion in
the quarter, missing the Zacks Consensus Estimate of $2.92
billion. The year-over-year decrease in revenues was due to lower
sales volume in all business segments, driven by the weak
industry situation and narrowed market share of the company.
Fiscal 2013 Results
Navistar reported a loss of $898 million or $11.17 per share in
fiscal 2013, compared to a loss of $3 billion or $43.56 per share
in fiscal 2012. Revenues declined 15.1% to $10.8 billion from
$12.7 billion in fiscal 2012.
Revenues from Navistar's North America Truck segment declined
15.9% year over year to $1.72 billion. The segment recorded a
loss from continuing operations of $355 million compared with a
loss of $396 million in the prior year. The segment's
year-over-year loss was narrower due to reduction in structural
and functional cost, partially offset by the non-cash goodwill
Revenues from Navistar's North America Parts segment dropped 6.3%
to $697 million in the quarter. The segment registered a profit
of $147 million, compared with $103 million a year ago. The
increase was driven by better margins and reduction in structural
Revenues from Navistar's Global Operations segment declined 18.4%
to $427 million. The segment's loss of $6 million was lower than
the loss of $73 million a year ago. The year-over-year drop in
loss was driven by higher margins from the South American engine
business and benefits from structural cost reduction actions in
Revenues from Navistar's Financial Services segment dipped 8.3%
to $55 million. The segment profits edged up to $17 million from
$16 million in the corresponding quarter last year. The increase
was driven by reduced operating expenses.
Navistar had cash and cash equivalents of $755 million as of Oct
31, 2013, compared with $1.1 billion as of Oct 31, 2012. Notes
payable and long-term debt was $5.1 billion as of Oct 31, 2013,
compared with $4.8 billion as of Oct 31, 2012.
Net cash from operations was $100 million in fiscal 2013 versus
$610 million a year ago. Capital expenditure was $167 million in
fiscal 2013, down from $309 million in the year-ago period.
Navistar expects retail sales of Class 8 in U.S. and Canada for
the fiscal year 2014 to stand at 220,000 to 230,000. Moreover,
the company estimates additional structural cost savings of $175
million in fiscal year 2014. Capital expenditure is projected to
be in line with the 2013 level. Further, Navistar
anticipates manufacturing cash and marketable securities to be
$1-$1.1 billion by the end of the first quarter of fiscal 2014.
Warrenville, Illinois-based Navistar manufactures and sells
commercial trucks, mid-range diesel engines, buses, military
vehicles and chassis for motor homes and step-vans. It also
provides service parts for various trucks and trailers.
Currently, the company carries a Zacks Rank #3 (Hold).
Some stocks that are performing well in the industry in which
Navistar operates include
Tower International, Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy).