Navistar: Smaller loss than previous year, yet still over $120 million
Northern, WI 03/11/2013 (gdpinsider) – Automotive giant Navistar International Corp (NYSE:NAV) has issued its first quarter statements for 2013. While the loss diminished from the worrying $153 million registered a year ago, it still soared, $123 million, as the company still struggles to regain its heading. The diluted share loss decreased however, from just over $2 per stock to a bit just over $1,5.
The main source for loss was due to the corporation`s continuing operations, roughly $114 million, but the company recovered from $144 million continuing operations losses the year before. Ergo, signs of progress occur, as the company`s EBITDA increased by $163 million due to its rigorous expenses trimming.
New launches, such as the SCR 13 – liter engine, are expected to increase the company`s revenues, while diminishing its severe losses. Navistar chairman stated that the corporation is vigorously reevaluating its inventories in an attempt to return to profit and regain shareholder confidence.
Another encouraging fact is the increase of cash liquidities from $950 million to roughly over $1 billion dollars, aided by contributing factors such as working capital increased efficiency and a reduction of capital expenses.
Increased returns on invested capital (ROIC) rates are also revealing signs of improvement, although the company has acknowledged that getting back to profit is an assiduous business, yet that goal will be achieved nevertheless.
Out of its four major components, namely Trucks, Engines, Parts and Financial Services, only the Parts division recorded profits, although losses in all sectors have diminished than the year before.
The shares of Navistar International Corp (NYSE:NAV) were down by 0.34% to close at $35.31