SEC Orders Navistar to Turn Over Documents; Q3 Results Posted

September 2, 2015

A court ordered Navistar to turn over a second set of documents to the Securities and Exchange Commission (SEC), reports the Chicago Tribune.

The court order is part of an ongoing investigation into whether or not Navistar violated federal securities laws by making false or misleading claims about its new engine technology to gain approval from the EPA.

The project cost Navistar $700 million and the technology failed 2010 federal emissions standards, according to the Tribune

The SEC overruled Navistar’s privilege claim for five of the 13 documents.

2015 Q3 Results:

Navistar reported a net loss of $28 million, or $0.34 per share, on revenues of $2.5 billion, compared to a 2014 third quarter net loss of $2 million.

Truck Segment — For the third quarter 2015, the Truck segment recorded a loss of $36 million, compared with a year-ago third quarter loss of $3 million. The Truck segment's loss increased, primarily driven by a benefit for adjustments to pre-existing warranties in the third quarter of 2014 and an increase in our used truck reserves of $10 million. In the third quarter of 2015, the Truck segment recorded charges for adjustments to pre-existing warranties of $3 million compared to a benefit for adjustments to pre-existing warranties of $32 million in the third quarter of 2014.

Parts Segment — For the third quarter 2015, the Parts segment recorded a profit of $151 million, up 10 percent compared to third quarter 2014, primarily due to margin improvements in commercial markets and the impact of cost improvement initiatives.

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