Truck and engine maker Navistar International Corp. (NAV) Wednesday reported a loss for its fourth-quarter, reflecting a non-cash tax expense, lower revenues as well as charges related to its cost-reduction actions. In pre-market trading the shares fell about 5 percent.
The company also said it is positioned to exceed its goal of reducing structural costs by $175 million, as a result of closing its Texas manufacturing plant and completion of workforce reductions in North and South America.
Lewis Campbell, chairman and chief executive officer of the company said, "We continue to make significant progress on our turnaround and the complexity of this quarter's results is reflective of the actions necessary during this time of transition."
In the fourth quarter, the company posted a net loss of $2.77 billion or $40.13 per share, compared to a net income of $255 million or $3.48 per share in the previous year.
On average, 16 analysts polled by Thomson Reuters expected loss per share of $1.12 for the quarter. Analysts' estimates typically exclude one-time items.
The company said its recent quarter results included a $2.19 billion or $28.59 per share non-cash domestic tax valuation allowance and $149 million pre-tax charge in additional pre-existing warranty reserve, on revenue of $3.3 billion.
Sales and revenues for the quarter fell 24 percent to $3.28 billion, but came above analysts' estimate of $3.18 billion.
For the fiscal year 2012, the company posted a net loss of $3.01 billion or $43.56 per share, compared to a net income of $1.72 billion or $22.64 per share a year ago. Annual revenues declined to $12.95 billion from $13.96 billion in the preceding year.
Navistar said it exceeded its fiscal 2012 outlook with $1.5 billion in manufacturing cash and marketable securities. Contributing factors in the fourth quarter included $363 million improvement in working capital and net proceeds of $192 million from an equity offering.
Separately, Navistar announced the appointment of Dennis Mooney as group vice president, Global Product Development. Mooney replaces Ramin Younessi, who is leaving the company to pursue other opportunities.
NAV closed Tuesday's regular trading at $22.85 on the NYSE. In the pre-market activity, the shares are down 5.10 percent.
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