Navistar posts larger-than-expected quarterly loss
Reuters
Published Dec 16, 2014 07:56AM ET
Navistar posts larger-than-expected quarterly loss
(Reuters) - Navistar International Corp (N:NAV) on Tuesday reported a larger-than-expected loss, pulled down by restructuring and product warranty costs.
The Lisle, Illinois-based truckmaker reported a net loss of $72 million, or 88 cents a share, in the fiscal fourth quarter ended October 31, compared with a loss of $154 million, or $1.91 a share, during the comparable quarter last year.
Sales rose 9 percent to $3 billion.
Analysts, on average, expected the company to post a profit of 15 cents a share, according to Thomson Reuters I/B/E/S.
Strong demand for the company's commercial vehicles in North America was offset by $60 million in charges related to the company's ongoing restructuring in North and South America.
On Monday, the company announced it was closing its engine foundry in Indianapolis, a move that will result in more than 100 job losses and cost the company $11 million during the quarter.
The company, which was once a leading maker of truck engines, continues to try to turn itself around after making a disastrous bet on a costly and unsuccessful proprietary smog-reduction system. The emissions-related debacle sent Navistar's warranty expenses skyrocketing even as sales tumbled.
(Reporting by James B. Kelleher in Chicago; Editing by Chizu Nomiyama)
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