CHICAGO Truck and engine manufacturer Navistar International Corp. remained in the red in its fiscal fourth quarter due primarily to lower sales across all business segments as the company transitioned to a new emissions strategy.
Nevertheless, the Lisle, Ill.-based company reduced its net loss to $154 million for the three months ended Oct. 31 from $2.77 billion in the same period a year earlier despite a 13.5-percent decline in revenue to $2.75 billion.
"Operationally, we hit our plan this quarter and we ended the (fiscal) year with an order backlog that is up 26 percent compared to this time last year," Navistar president and chief executive officer Troy A. Clarke said in a statement Dec. 20.
Navistar reduced its structural costs, completed its on-highway Class 8 transition to selective catalytic reduction (SCR) emissions technology and launched medium-duty products, which resulted in building 500 medium-duty SCR trucks and buses this month, as planned, Clarke said.
"We are disappointed that our previous engine strategy continues to negatively impact us in the form of additional warranty expense, but we will continue to stand behind our products and manage this issue as these engines work their way through the ... warranty cycles," he said. "Were not letting it overshadow the strong progress weve made. We are ... entering 2014 in a much stronger position than we were one year ago."
Navistar is forecasting industry sales of 220,000 to 230,000 Class 8 vehicles in the United States and Canada in its 2014 fiscal year.
The company posted a net loss of $898 million for its fiscal year ended Oct. 31, down 70.2 percent from $3.01 billion the previous year on revenue that declined 15.1 percent to $10.78 billion.