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Editor: John Mortimer
Thursday, 3 September 2015
Navistar: Losses continue to flow
Thunder continues to rumble
in the background at troubled Navistar International Corporation which has now reported
12 straight quarter losses on the trot
The truck and engine maker has just reported
a third-quarter loss when analysts had projected a profit.
Navistar reported a loss of $28 million
in the quarter ended July 31, widening from $2 million a year earlier.
“We’re not standing still and we continue to take actions to improve both the revenue and cost sides of the business,” said chief executive officer Troy Clarke in the company's statement.
Navistar said the U.S. Securities and
Exchange Commission (SEC) sent Wells Notices on August 13 and August 17
indicating a possible enforcement action in connection with a formal order of
investigation from July 2012.
Penalties for SEC violations may
include an injunction, a cease-and-desist order and fines, the company said.
Navistar has been restructuring its
North American business following the departure of former chief executive
Navistar said Wednesday that it expects
cash flow to be positive next year.
Billionaire investor Carl Icahn had a
stake of almost 20 per cent in the company as of June 30. And clearly, Clarke still has problems on his plate as he wrestles with the skeletons in Navistar's cupboard - a hangover of the Ustian days.