Navistar Slides After Wider Second-Quarter Loss: MoverBill Koenig
Navistar International Corp. fell the most in 10 months after the maker of International trucks and MaxxForce engines reported a wider quarterly loss.
The shares slid 9.1 percent to $31.20 at the close in New York, the biggest one-day decline since Aug. 2. Navistar has climbed 43 percent this year, compared with a 14 percent gain for the Russell 1000 Index.
Navistar yesterday posted a fiscal second-quarter net loss of $374 million, compared with a deficit of $172 million a year earlier. Excluding discontinued operations, the per-share loss for the period ended April 30 widened to $4.39 from $2.01 a year earlier. The average of 14 analyst estimates compiled by Bloomberg was for a loss of $1.20 a share.
Chief Executive Officer Troy Clarke, who assumed the top post at the Lisle, Illinois-based company in April, is trying to end losses, installing his executive team and selling off units not part of Navistar’s main truck business. The company last month sold its recreational-vehicle business to Allied Specialty Vehicles Inc. for an undisclosed amount.
The truckmaker cited lower sales and higher warranty costs for engines that failed to meet 2010 federal emission standards for the quarterly deficit. Revenue fell 23 percent to $2.53 billion. The results were released after the end of regular trading yesterday in New York.