Navistar International Corporation
) recorded a narrower loss of $114.0 million or $1.42 per share
in the first quarter of fiscal 2013 (ended Jan 31, 2013) compared
with $144.0 million or $2.06 per share in the year-ago quarter.
However, the loss per share was better than the Zacks Consensus
Estimate of a loss of $1.63 per share.
The company expects to be profitable with the improvement in
quality, launch of new SCR engine programs and delivery according
to the 2013 operating plan in the near future.
Revenues declined 12.4% year over year to $2.6 billion in the
quarter, missing the Zacks Consensus Estimate of $2.8 billion.
The year-over-year decline in revenues was due to sluggish
industry demand and lower market share of the company due to its
transition to clean engine systems as per EPA regulation.
Revenues from the Truck segment declined 20.9% to $1.7 billion.
The segment recorded a loss of $58 million compared to a loss of
$27 million in the first quarter of fiscal 2012. The wider loss
was attributable to the decline in traditional truck volumes and
increase in depreciation owing to the closure of the Garland,
Revenues from the Engine segment fell 13.9% to $740.0 million in
the quarter. The segment registered a loss of $27 million
compared with a loss of $120 million in the corresponding quarter
last year. The improvement was driven by lower charges for
pre-existing warranties; decline in engineering and product
development expenditures in South America and lower SG&A
Revenues from the Parts segment rose 17.7% to $552.0 million.
Profits from the segment increased 72% to $86 million from $50
million in the first quarter of 2012. The year-over-year rise in
profits was driven by favorable volume and pricing strategies as
well as lower SG&A expenses.
Revenues from the Financial Services segment slipped 13.2% to
$59.0 million. Segment profit dropped 18.5% to $22 million from
$27 million in the corresponding quarter last year. The decrease
was driven by lower net interest margin.
Navistar had cash and cash equivalents of $497.0 million as of
Jan 31, 2013, compared with $1.1 billion as of Oct 31, 2012.
Total debt was $4.5 billion as of Jan 31, 2013, compared with
$4.8 billion as of Oct 31, 2012.
Net cash flow from operations decreased to $66.0 million in the
first three months of fiscal 2013 from $119.0 million a year ago.
Capital expenditure declined to $72.0 million from $103.0 million
in the same period a year ago.
Warrenville, Ill-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 retains a Zacks Rank #3 (Hold) on its
Few stocks that are performing well in the industry where
Navistar operates include
STRATTEC Security Corporation
). Oshkosh and Strattec Security are Zacks Rank #1 (Strong Buy)
stocks while Gentherm carries a Zacks Rank #2 (Buy).
NAVISTAR INTL (NAV): Free Stock Analysis
OSHKOSH CORP (OSK): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
GENTHERM INC (THRM): Free Stock Analysis
To read this article on Zacks.com click here.