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.

Were 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 Daniel Ustian.

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.

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