Navistar International (NAV 25.57, -0.56) has given up 2.1% after reporting first quarter results.
The truck maker reported a loss of $0.76 per share, which may not be comparable to estimates. Revenue declined 5.8% year-over-year to $1.66 billion, which was shy of expectations.
The company cited a difficult business environment for its shortfall. Chairman, President, and CEO Troy Clarke noted that the company's order share outpaced its market share, which has given hope for improved performance in the future. The company has received a $256 million equity investment from Volkswagen Truck & Bus and created a procurement joint venture with VW. Navistar expects synergies of at least $500 million over the first five years and annual synergies of at least $200 million by year five.
Looking at the segment breakdown, Truck sales fell 9.0% due to lower Core truck volumes and soft industry conditions. Comparability was also affected by the end of CAT-branded units sold to Caterpillar and the sale of Pure Power Technologies in the second quarter. Segment loss totaled $69 million after recording a loss of $51 million one year ago. Softer business conditions and market pressures were partially offset by lower used truck losses, improved material costs, and lower adjustments to pre-existing warranties.
The parts segment saw little year-over-year change with segment profit checking in at $149 million, down slightly from $150 million one year ago.
Global Operations net sales fell 46.0% due to lower volumes in the South American engine operation. Engine volumes fell 69.0% due to the end of a customer contract early in the second quarter. Continued softness in the Brazilian economy contributed to the soft results, but was partially offset by favorable movements in exchange rates. Segment loss totaled $4 million.
Financial Services revenue declined 8.0% due to lower overall finance receivable balances. Segment profit fell 50.0% to $13 million.
Shares of Navistar have responded to the report by dropping to a new low for the year, extending their 2017 decline to 19.1%.