UPDATE: Navistar Posts Narrower-Than-Expected FQ3 Loss, Shares Gain

Shares of Navistar International

surged more than 3.8% in pre-market trading after the company reported a narrower-than-expected loss for the fiscal third quarter. The suburban Chicago-based company posted a quarterly loss of $2 million, or $0.02 per share, versus a year-ago loss of $247 million, or $3.06 per share. Its sales came in flat at $2.8 billion. However, analysts were projecting a loss of $0.66 per share on revenue of $2.96 billion. The North America Truck segment posted a quarterly loss of $12 million, versus a year-earlier loss of $143 million. The North America Parts segment posted a profit of $127 million, versus a year-earlier profit of $98 million. The global operations reported a quarterly loss of $2 million, versus a year-ago loss of $22 million. However, the financial services segment posted a profit of $24 million, versus a profit of $23 million. Its income from continuing operations before taxes came in at $21 million, versus a year-ago loss of $211 million. Its EBITDA came in at $142 million, versus a year-ago EBITDA loss of $74 million. The latest quarter included a $29 million benefit in pre-existing warranty adjustments, partially offset by $20 million in restructuring and impairment charges. Its adjusted EBITDA for the quarter was $133 million. The company finished the quarter with $1.1 billion in manufacturing cash, cash equivalents and marketable securities. "Our third quarter results reflect a number of positive trends including increased production, improvements in warranty charges, cost reductions that further lowered our breakeven point and our continued efforts to manage cash," said Troy A. Clarke, Navistar president and chief executive officer. Navistar projects Q4 EBITDA of $115 million to $165 million. Navistar shares surged 3.85% to $39.97 in pre-market trading.