Navistar International Corporation Tuesday announced a first quarter 2016 net loss of $33 million, a 21 percent improvement over the $42 million net lost posted Q1 last year.
Revenues slid 27 percent to in the quarter to $1.8 billion thanks to lower volumes of trucks being sold in core U.S. and Canadian markets, among other global economic factors.
Despite the 30-plus million dollar loss, Navistar President and Chief Executive Officer Troy Clarke says the company is on track to achieve its goals of returning to profitability and generating positive manufacturing free cash flow this year.
“Despite a lower revenue base, we continued to unlock value by significantly improving adjusted EBITDA through managing and optimizing our costs,” he says.
Walter G. Borst, Navistar executive vice president and chief financial officer, adds the company is on track to achieve its annual $200 million cost reduction target.
“We operated within our indicated cash range in what is seasonally our weakest revenue and most cash-intensive quarter,” Borst says, “ending the first quarter 2016 with $673 million in manufacturing cash, cash equivalents and marketable securitiesWe also continued to manage costs out of our business.”
Clarke adds as the company continues its March to profitability, it will do so with a revamped product line.
“Over the next few years, the company expects to announce a new product on average every six months, completely refreshing the product line by the end of 2018,” he says.
Last month, Navistar unveiled its new HX Series of severe service trucks, jumping back into a segment from which it had been largely absent since 2010. Barely a week following the launch, the company said it had received more than 300 orders for the HX, and positive feedback from customers.
First quarter 2016 EBITDA was $82 million, compared to a Q1 2015 EBITDA of $101 million. First quarter adjusted EBITDA was $77 million, up 43 percent, compared to adjusted EBITDA of $54 million during the same period last year.