Navistar reports $81M net loss in 1Q
Springfield employer shares progress with VW truck unit merger.
Navistar released its financial results for the first quarter of this financial year, reporting a net loss of $81 million during the three month period.
Representatives of the truck manufacturer said the loss for the period that ended on Jan. 31 included $86 million of tax-effected significant items. In comparison, the company reported a net loss of $33 million during the first quarter of 2020.
Navistar released its first quarter results this week. It saw revenues of $1.8 billion during that period, comparable to what was reported during the same quarter last year.
Navistar’s CEO Persio Lisboa said in a news release that the company started the year on a strong note.
Lisboa said that truck revenues returned to levels seen before the coronavirus pandemic and there was an increase in retail market share in each of Navistar’s vehicle segments.
The company also reported
an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization of $116 million, or 6.4% of revenue, up from the $59 million, or 3.2% of revenue, reported a year ago.
Navistar also finished the first quarter of 2021 with $1.3 billion in consolidated cash and cash equivalents, including $1.2 billion in manufacturing cash and cash equivalents, according to a news release that highlighted those financial results.
Navistar employs more than 1,000 people in Clark County and has a manufacturing facility in Springfield, which builds medium-duty trucks as well as cutaway vans for General Motors.
The company reported strong medium to heavyduty truck orders during the first quarter, which caused the company to increase its production line-rates in its truck assembly plants.
Charge outs for the company’s medium and heavy duty trucks and buses in the United States and Canadian markets were 10,600 units in the first quarter of 2021.
Charge outs are defined as trucks and buses that have been invoiced to customers.
“We expect the roll-out of COVID-19 vaccines and easing of state restrictions will continue to support strong economic growth and the need for new trucks,” said Lisboa.
The quarter also saw several announcements being made by the company.
That included the announcement of a collaboration with General Motors and OneH2 to bring a hydrogen truck ecosystem solution to the trucking industry.
Navistar also announced that it acquired a second property in San Antonio that will house support functions for its under-construction 900,000-square-foot plant in the area.
Representatives of the company also announced progress being made in relation to its pending merger with Volkswagen’s truck unit Traton SE.
Stockholders of Navistar approved a proposal by Traton during an annual meeting with stockholders this month. The proposal calls for Traton to acquire all of the outstanding common shares of Navistar at a price of $44.50 per share in cash or $3.7 billion in total.
Navistar announced the planned merger last year.
The company’s representatives said that the merger will accelerate Navistar’s growth, providing it with access to new technologies, products and services while taking advantage of Traton’s global scale.
Contact this reporter at 937-701-2336 or email hasan.karim@coxinc.com.