Navistar International Corporation ( NAV ) hardly wasted any time in appointing a new chief financial officer to replace former CFO Andrew Cederoth. After announcing on Jun 24 that Cederoth will vacate office at the end of this month, Navistar announced yesterday that Walter Borst will join the company as executive vice president and CFO.
Borst served as the chairman, chief executive officer and president of General Motors Company 's ( GM ) Asset Management. He was responsible for managing around $85 billion assets related to the GM benefit plans. Borst will join Navistar from Aug 1, 2013 and will be reporting to Navistar's president and CEO Troy Clarke.
Navistar expects that this transition will lead to future profitability and long-term success. The company has changed many executives this year and this latest transformation comes close on the heels of the company announcing its second quarter fiscal 2013 results.
Navistar's second-quarter (ended Apr 30, 2013) loss widened to $353 million or $4.39 per share compared with $137 million or $1.99 per share (excluding special items) in the year-ago quarter. Reported loss was also significantly wider than the Zacks Consensus Estimate of a loss of $1.09 per share.
Revenues declined 22.5% year over year to $2.5 billion in the quarter, missing the Zacks Consensus Estimate of $2.9 billion.
Navistar has been reorganizing its board constantly. In Mar 2013, it had promoted Troy Clarke to the new role from being the president and chief operating officer. The company thereafter appointed Jack Allen as the executive vice president and chief operating officer.
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 carries a Zacks Rank #4 (Sell) on its stock.