Third-quarter revenue dropped 45 percent for Navistar International Corp. compared to the same period in 2019, resulting in a net loss of $37 million on revenues of $1.7 billion. The company cited the impact of Covid-19, as well as prior year comparable quarter results that were near the peak of the prior industry cycle.
“Our fiscal third quarter opened during the middle of many stay-at-home orders and ended with sections of the economy beginning to reopen, and our results certainly reflect this,” said Persio Lisboa, president/CEO, in a prepared statement. “While marketplace uncertainties continue, we are accelerating the pace of progress on our Navistar 4.0 strategy for financial improvement, so we can pull forward its benefits and take full advantage of a stronger industry when it arrives.”
The company’s Navistar 4.0 strategy lays out a plan to increase EBITDA margins to 12 percent by 2024.
Bloomberg reported this week that Volkswagen has resumed takeover talks with Navistar.
Earlier this year, Navistar took several actions to conserve cash and bolster its liquidity in response to the coronavirus pandemic. These actions have been successful, according to the company, as it ended the third quarter with $1.6 billion of manufacturing cash, allowing it to cease its employee salary deferral program on September 1, several months earlier than initially planned.
Sales in the truck segment were $1.2 billion, down 50 percent compared to last year, resulting in a los of $22 million. The year-over-year decrease is primarily due to lower volumes driven by weaker industry conditions resulting in part from the pandemic.