Navistar Loss Widens, Receives Subpoena From Defense Department
September 08 2016 - 9:30AM
Dow Jones News
Navistar International Corp. reported a wider loss in its third
quarter as the company continues to face declining heavy duty truck
sales.
The company also said in a regulatory filing that its defense
unit received a subpoena during the quarter from the U.S. Defense
Department Inspector General. The subpoena was related to
Navistar's independent suspension systems for military vehicles
sold to the government in 2009 and 2010. Navistar said it had
submitted documents in response and intends to fully comply with
the subpoena.
Shares fell 3.6% in premarket trading.
On Tuesday, Volkswagen AG said it would take a minority stake in
Navistar to broaden the German auto maker's U.S. footprint while
expanding its global truck-market operations. VW plans to invest
$256 million in Navistar for a 16.6% stake in the company. It will
also have the right to appoint two directors to Navistar's
board.
The Lisle, Ill., truck producer on Thursday said results in the
quarter were hurt by tougher industry conditions, as trucking
companies are opting to buy fewer vehicles amid soft demand for
hauling freight. Still, the company reaffirmed its guidance for the
year.
Revenue declined across its segments with truck sales falling
24% to $1.4 billion as parts revenue fell 4.5% to $597 million.
Costs and expenses fell 18% from a year earlier.
For the three months ended July 31, Navistar reported a loss of
$34 million, or 42 cents a share, compared with a year-earlier loss
of $28 million, or 34 cents a share. Revenue slipped 18% to $2.09
billion.
Analysts had expected a loss of 14 cents a share on revenue of
$2.18 billion.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 08, 2016 09:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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