Navistar International Corp. reported Q1 sales of $1.8 billion, comparable to its sales in the same quarter of 2020. Net loss for the quarter was $81 million; the company reported a $36 million loss in Q1 2020.
“We are starting 2021 on a strong note, as adjusted EBITDA margin doubled, truck revenue returned to pre-Covid levels, and retail market share increased in each of our vehicle segments,” said Persio Lisboa, CEO, in a prepared statement.
Sales in the Truck segment were $1.2 billion in the first quarter, flat compared to last year, despite lower industry volumes. Lower volumes in its Core markets were offset by higher total share and volumes in Mexico, used truck, and export operations. The Truck segment incurred a net loss of $81 million in first quarter 2021, compared to a loss of $58 million in first quarter 2020. The loss in the first quarter of 2021 included a $49 million charge related to pre-existing warranties and $47 million of charges related to the pending sale of its Melrose Park facility. Excluding these items, the Truck segment would have been profitable in the period, reflecting favorable product mix and improved margins, the company said.
The Parts segment net sales were $467 million, a 5 percent decrease from first quarter 2020. The decrease was primarily driven by lower volumes in the U.S. and Canada due to the continuing impact of the pandemic on the commercial truck and school bus industries. The Parts segment saw a first quarter profit of $111 million, lower compared to $119 million in first quarter 2020 in line with lower sales.
“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. “Our performance this quarter, along with the sustained execution of our Navistar 4.0 strategy and future opportunities with Traton, positions Navistar to deliver increased value to our customers, dealers, partners and other stakeholders.”
At Navistar’s annual stockholder meeting on March 2, the merger proposal with Traton was approved. Additionally, the company stated that it completed filing for regulatory approvals from the required jurisdictions, and on February 12, reported that the Hart-Scott-Rodino (HSR) antitrust waiting period had expired. The company continues to believe the merger will close in mid-2021.
Source: Navistar
