Navistar announced a fourth quarter 2020 net loss of $236 million compared to fourth quarter 2019 net income of $102 million.
Revenues in the quarter were $2.1 billion versus $2.8 billion a year ago. Fourth quarter 2020 Core (Class 6-8 trucks and buses in the United States and Canada) charge outs were 13,200 versus 20,200 in fourth quarter 2019. Revenue for fiscal year 2020 was $7.5 billion versus $11.25 billion in 2019. The decrease in revenue and charge outs was primarily driven by the impact of Covid-19 on the trucking industry.
Fourth quarter 2020 results were impacted by $297 million of tax-affected significant items. Included in this amount is a $289 million accrual related to a profit sharing dispute, a $58 million settlement with the Department of Justice related to Navistar Defense and a $14 million charge related to pre-existing warranties.
Navistar finished fourth quarter 2020 with $1.8 billion in consolidated cash and cash equivalents.
The company continued to make progress on Navistar 4.0, its multi-year strategic plan. Navistar also continued to make progress on emerging technologies, announcing that it will deliver a full electrification solution, including charging, route planning and infrastructure, to a school bus customer in British Columbia. The company also conducted a successful West Coast tour of its electric school bus.
In connectivity, Navistar launched Intelligent Fleet Care, the industry's most comprehensive standard suite of connected vehicle solutions, which is standard for Navistar's new on-highway vehicles.
The most significant announcement during the fourth quarter was Navistar's planned merger with Traton SE. The merger will accelerate Navistar's growth, providing it with access to new technologies, products and services while taking advantage of Traton's global scale.
Truck Segment: In fourth quarter 2020, the Truck segment net sales were $1.5 billion, a 30 percent decrease compared to fourth quarter last year. In fiscal year 2020, the Truck segment net sales decreased by $3.3 billion, or 38 percent, to $5.3 billion. The decrease was primarily due to lower volumes in Core markets due to the pandemic.
The Truck segment incurred a net loss of $10 million in fourth quarter 2020, compared to a profit of $86 million in fourth quarter 2019.
Parts Segment: For fourth quarter 2020, the Parts segment net sales were $496 million, a nine percent decrease from fourth quarter 2019. The decrease was primarily due to lower volumes in the U.S. and Canada due to the pandemic.
The Parts segments saw a fourth quarter profit of $129 million, compared to $161 million in fourth quarter 2019. The decrease was due to the impact of lower revenues.
