Navistar Reports 2Q Loss; Names New Truck and Engine Chief


6/7/2012 4:00:00 PM
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Navistar International Corp.

Navistar International Corp. reported a second-quarter loss and said company executive Troy Clarke will head its truck and engine operations, in a newly created position.

The truck and engine maker lost $172 million, or $2.50 per share, compared with a profit of $74 million, or 93 cents, a year ago.

Revenue for the fiscal quarter ended April 30 slipped 2% to $3.3 billion, Navistar said Thursday.

 

The company also lowered its 2012 outlook for its adjusted earnings to break-even to $2 per share, from a previous $4.25 to $5.25 per share.

 

Its truck segment posted an $89 million loss, compared with a year-ago profit of $92 million. Truck segment sales rose 4%. Navistar makes International brand trucks.

The engine segment lost $108 million, compared with a profit of $2 million a year ago. Segment sales fell 6%. Its parts unit posted a $41 million profit, down from $74 million a year ago.

Calling the results “unacceptable,� Chairman and CEO Daniel Ustian said the earnings were “affected by speculation surrounding our engine certification for our Class 8 engine, which is why we are working tirelessly with the U.S. EPA to get resolution.�

Clarke, who will head truck and engine operations, is currently president of Navistar’s Asia and Pacific unit. His new position will become effective July 1, following board approval, Navistar said.

Jack Allen will expand his role as president of North American truck operations to include Navistar’s parts business. Allen, a 30-year Navistar veteran, headed its engine segment 2004 to 2008.

Eric Tech will expand his role as engine president to become president of global truck and engine operations, responsible for business outside North America. Tech joined Navistar six years ago from Ford Motor Co.

Navistar had also announced a push for expanding use of natural gas engines at the Mid-America trucking show earlier this year.

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