Navistar International Corp. (NYSE: NAV) reported a Q1 fiscal loss in its final earnings release after 35 years as the public holding company for International trucks and IC buses.
The closing of its merger with Volkswagen AG’s TRATON Group is expected by the middle of the year. That would be before Navistar would report again. Following the merger, Navistar would de-list from the New York Stock Exchange. TRATON’s U.S. subsidiary would likely replace it.
Because of the pending merger, which Navistar shareholders overwhelmingly approved on March 2, Navistar did not hold an earnings call for analysts for the second consecutive quarter. The waiting period for antitrust objections to the merger expired Feb. 12, Navistar said.
Net loss
Navistar reported a bigger year-over-year first-quarter net loss of $81 million, or 81 cents per diluted share, on revenues of $1.8 billion. The loss was due to higher-than-expected warranty costs on its trucks and the closing of an engine testing facility in Illinois. Navistar lost $36 million, or 36 cents, in the first quarter of 2020.
On an operating basis, Navistar generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $116 million, or 6.4% of sales. That was double year-ago EBITDA of $59 million, or 3.2% of sales. Adjusted income was $5 million compared to a loss of $33 million a year ago.
The truck and bus maker said it gained an overall 1.8 points of market share across its Class 6-8 truck product lines compared to a year ago.
Revenues of $1.8 billion were comparable to the December-February period a year earlier. The company delivered 10,600 trucks and buses in the most recent quarter.
Quarterly highlights
During the quarter, Navistar:
- Formed a four-way collaboration with General Motors (NYSE: GM) and OneH2 to bring a hydrogen truck ecosystem solution to J.B. Hunt Transport (NASDAQ: JBHT). It plans to sell its first production model International RH Series hydrogen fuel cell truck in 2024.
- Acquired a second property in San Antonio for support functions for its under-construction 900,000-square-foot plant in the area that will produce Class 6-8 vehicles, including electric-powered trucks. The new property brings total investment to more than $275 million with the creation of 650 jobs.
- Raised production line rates at truck plants in Springfield, Ohio, and Escobedo, Mexico. Navistar plans further line-rate increases depending on the supply chain’s ability to keep up. Shortages of semiconductors used through vehicles could prevent truck assembly as they have at car plants.
“We expect the rollout of COVID-19 vaccines and easing of state restrictions will continue to support strong economic growth and the need for new trucks,” Navistar CEO Persio Lisboa said in a statement.
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