Navistar Details COVID-19 Impact, Stops Production in Ohio

Navistar International has provided a business update in light of the outbreak of the coronavirus disease (COVID-19), which includes a two-week stoppage for its Springfield, Ohio, truck plant.

On March 23, 2020, the company is suspending production at its truck assembly plant in Springfield, Ohio, for two weeks in response to disruptions to Navistar's supply chain that are resulting from the evolving COVID-19 pandemic.

The company is also withdrawing its previously announced financial and industry guidance for the fiscal year ending October 31, 2020.

On March 4, 2020, the company reiterated its 2020 financial and industry guidance when it announced its first quarter 2020 results for the fiscal period ended January 31, 2020 and stated its guidance may require revision, pending any change to operations due to COVID-19.

Navistar says it cannot predict if or when any further disruptions will occur due to the rapidly changing environment as the COVID-19 pandemic continues to evolve. The company believes its future financial results will be impacted, but at this time, the magnitude of those impacts is uncertain. As a result, the company is withdrawing its 2020 financial and industry guidance.

As of January 31, 2020, the company stated it had $1.0 billion of consolidated cash and cash equivalents. Additionally, the company reported its Financial Services operations had funding capacity available under its $748 million revolving bank credit facility, as well as access to other sources of funding in the U.S. and Mexico.

Navistar is a holding company whose subsidiaries and affiliates produce International brand commercial trucks, proprietary diesel engines, and buses. An affiliate also provides truck and diesel engine service parts. Another affiliate offers financing services.

Source: Navistar