Despite Q1 Loss, Navistar Plans To Aggressively Update Product Line
Recently in the news, Navistar has just loss $33 million in the 1st quarter of 2016 on $1.8 billion revenues. But this loss is not stopping the company from moving forward, pushing its limits and grasping every opportunity coming their way in terms of innovation and technology.
The company believes it’s still a positive sign for a better year as the last year’s net loss accounted for $42 million. So, on a brighter side, the company has done better since the last year’s first quarter sales. The company looks more than hopeful that it will soon be making profits in the coming quarters as it is thoroughly planning to update its product line for a refreshed look.
According to Troy A. Clarke, president and chief executive officer of Navistar, “Despite a lower revenue base, we continued to unlock value by significantly improving adjusted EBITDA through managing and optimizing our costs.” He further added, “We are encouraged by our Q1 performance and remain on track to achieve our goals of returning to profitability and generating manufacturing free cash flow in 2016.”
The highlights of the 1st quarter for Navistar also showed a record profit of $150 million, a decrease in cost by $57 million and also a reduction of 2.6% in warranty costs of manufacturing revenue, earning them the title of the “best in class” in terms of quality levels.
Walter G. Borst, executive vice-president and chief financial officer at Navistar, appreciating the company’s last quarter’s achievements stated:
“This was a solid quarter in which we made real progress toward our 2016 targets. We operated within our indicated cash range in what is seasonally our weakest revenue and most cash-intensive quarter, ending the first quarter 2016 with $673 million in manufacturing cash, cash equivalents and marketable securities. We also continued to manage costs out of our business, putting us on track to achieve our annual $200 million cost reduction target.” The company also agreed that there is a surplus of used trucks in the industry.
A leadership calling for the retail deliveries has already been issued by the truck company of Class 6-8 trucks and buses in Canada and the US to finish manufacturing 350,000-380,000 units by the end of the 2016 fiscal year. The market for Class 8 trucks will be slowed down in the coming quarters of 2016 from 279,000 units to 240,000-270,000 as compared to the last year. The decision to do so is an initiative to increase the growth and demand of medium-duty truck markets.
– See more at: http://truckernews.com/despite-q-loss-navistar-plans-to-aggressively-update-product-line-p751-90.htm#sthash.6awCLxKJ.dpuf