LISLE, Ill. – Navistar International posted a third quarter net loss of US$37 million, as revenues plunged 45% year-over-year primarily due to the Covid-19 pandemic.
“Our fiscal third quarter opened during the middle of many stay-at-home orders and ended with sections of the economy beginning to reopen, and our results certainly reflect this,” said Persio Lisboa, president and chief executive officer, Navistar. “While marketplace uncertainties continue, we are accelerating the pace of progress on our Navistar 4.0 strategy for financial improvement, so we can pull forward its benefits and take full advantage of a stronger industry when it arrives.”
The company says it’s Navistar 4.0 strategy aims to increase EBITDA margins to 12% by 2024. Navistar ended the quarter with $1.6 billion in manufacturing cash, allowing it to cease its employee salary deferral program on Sept. 1, several months earlier than panned.
Navistar announced in its earnings report that it continues to work toward opening a San Antonio, Texas, production facility in the spring of 2022, ad that it will be capable of building both diesel and electric vehicles. The first vehicle off the line will be a fully electric truck, Navistar revealed.
“As a result of the pandemic, we had the opportunity to revisit our investment portfolio and re-time non-critical programs, and cancel others,” said Lisboa. “By streamlining our investments, we were able to free up significant capacity, which is being redeployed into advanced technology programs and strategic partnerships that accelerate our pace of progress.”