Navistar announced a second quarter 2019 loss of $48 million, compared to second quarter 2018 net income of $55 million. The loss reflected a one-time charge of $159 million to address a legal class action settlement, and related litigation from legacy engines.
Revenues in the quarter were $3 billion, up 24 percent compared to the $2.4 billion in Q2 of last year. Revenues are expected to be between $11.25 billion and $11.75 billion in full-year 2019. The increase primarily reflects volumes in the company’s core market, where chargeouts were up 35 percent. Industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be 425,000 to 445,000 units in full-year 2019, with Class 8 retail deliveries of 290,000 to 310,000 units.
Q2 adjusted EBITDA was up 23 percent to $224 million, compared to adjusted EBITDA of $182 million in the comparable period last year. The company’s adjusted EBITDA is expected to be between $875 million and $925 million in full-year 2019.
Navistar ended the second quarter with $1.0 billion in consolidated cash, cash equivalents, and marketable securities. Manufacturing cash, cash equivalents, and marketable securities were $950 million at the end of the quarter.
During the quarter, the company also announced initiatives like its new Aftersales function that will manage every facet of the business after the sale of the truck including parts and service. A new partnership with Love’s Travel Stops also created the commercial transportation industry’s largest service network.
Source: Navistar
