LISLE, Ill. – Navistar International reported a Q2 loss of
US$38 million, on falling revenues of $1.9 billion, a 36% decline
year-over-year.
The company said the decrease was primarily due to the
impact of the Covid-19 pandemic, resuling in lower volumes in its core Classes
6-8 markets.
“Like a number of businesses, our company has
been impacted by the Covid-19 pandemic and that is reflected in our
results,” said Troy A. Clarke, Navistar chairman, president and chief
executive officer. “Our team has done a tremendous job managing the
business throughout this challenging time, and we have taken a number of steps
to position the company to weather this crisis.”
“We are focused on preserving cash and
reducing cost, but not at the risk of sacrificing our future,” added Walter
Borst, Navistar chief financial officer. “We remain steadfast in pursuing
Navistar 4.0, and while some programs and expenditures have been delayed, they
have not been cancelled. It’s important that we continue to invest in our
company, even in these difficult times, to ensure our long-term success.”
The company said it remained largely in operation
through the quarter, though production facilities experienced limited
disruptions. Its parts distribution centers remained open, and its dealer
network stayed operational.
“As an essential business, we took early
actions to protect our people so that we could fulfill our duty to keep our
assembly plants running and parts distribution centers in operation to serve
our customers and dealers who are keeping the economy moving by delivering
essential goods and services to our communities,” said Persio Lisboa,
chief operating officer. “Throughout the quarter, we have worked closely
with our suppliers to overcome significant disruptions to the flow of parts to
our facilities and have been moderately successful in maintaining
operations.”
The company supported customers by launching its
International Cares initiative, offering no payments for six months.
“There are several theories as to the shape of
economic recovery, but we have plans in place to respond accordingly,”
said Clarke. “Recovery will likely be gradual as businesses reassess
operating plans to return to a ‘new normal,’ but this ‘new normal’ will still
require trucks. The actions we’ve taken over the past few months have us in
position to succeed, no mater the shape of recovery.”
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