Navistar reports second quarter net loss of $374 million
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Lisle-based Navistar International Corporation today announced a second quarter 2013 net loss of $374 million, or $4.65 per diluted share,
Lisle-based Navistar International Corporation today announced a second quarter 2013 net loss of $374 million, or $4.65 per diluted share, compared to a second quarter 2012 net loss of $172 million, or $2.50 per diluted share. Excluding discontinued operations, Navistar recorded a second quarter 2013 loss from continuing operations of $353 million, or $4.39 per diluted share, compared to a second quarter 2012 loss from continuing operations of $138 million, or $2.01 per diluted share. Second quarter 2012 results included a gain of $181 million for the release of an income tax valuation allowance related to Canadian deferred tax assets.
The year-over-year decline was mainly due to lower volumes and higher pre-existing warranty adjustments of $164 million in the second quarter 2013, primarily related to EPA 2010 emissions level engines. This was partially offset by $60 million in lower SG&A expenses and $32 million in reduced engineering and product development costs this quarter versus the same period one year ago.
Manufacturing revenue in the quarter was $2.5 billion, down 23 percent from the second quarter of 2012. The decline reflects a 14% drop in overall industry demand and lower market share during the company's emissions strategy transition. This was partially offset by stronger volumes in the South America engine business.
"We are not satisfied with our overall financial results this quarter, but we are pleased with the continued progress we made in a number of areas on our turnaround plan," said Troy A. Clarke, Navistar president and chief executive officer. "We still face some significant, yet solvable challenges, primarily in the areas of higher pre-existing warranty costs for our earlier EPA 2010 emissions level engines, as well as in rebuilding sales and restoring market share. However, we are already implementing the right leadership and business process changes to effectively address these priority issues."
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