Navistar Shares Dip Following Q3 Results

Shares of

tumbled over 14 percent in pre-market trading after the company reported results for its fiscal third quarter on Wednesday. The Lisle, Illinois-based company posted a quarterly net loss of $28 million, or $0.34 per share, versus a year-ago loss of $2 million, or $0.02 per share. Loss from continuing operations widened to $0.37 per share from $0.04 per share. Its EBITDA slipped to $106 million in the latest quarter, from $142 million in the year-ago period. The latest quarter included certain net charges of $23 million, versus benefits of $9 million in the year-ago quarter. Its revenue declined around 11 percent to $2.54 billion. Analysts were expecting earnings of $0.08 per share on revenue of $2.75 billion. For the third quarter, Navistar's Truck segment posted a loss of $36 million, versus a year-earlier loss of $3 million. The Global Operations segment reported a quarterly loss of $26 million, versus a year-ago loss of $21 million. The company's profit at Parts segment rose 10 percent to $151 million, while profit at the Financial Services segment increased to $26 million from $24 million. Navistar finished the quarter with $775 million in manufacturing cash, cash equivalents and marketable securities. "We are encouraged that overall, our core truck business continues to improve year-over-year, driven by steady and improving performance in medium, school bus and severe service, where we are on track to achieve our full-year market share goals," said Troy A. Clarke, Navistar president and chief executive officer. "We're not standing still and we continue to take actions to improve both the revenue and cost sides of the business. We expect to achieve our 8 percent EBITDA margin run rate exiting 2015 thanks to the extraordinary, ongoing success we've had in addressing costs across our enterprise." Navistar shares fell 14.34 percent to $14.87 in pre-market trading.