March 13, 2013
Through the first quarter of the 2013 fiscal year, Navistar recorded a loss of $114 million, but the company’s parts segment is growing year-over-year.
Navistar’s parts segment soared 17.7 percent to $552.0 million. Profits from the parts segment jumped 72 percent to $86 million, up from $50 million in the first quarter of 2012.
“Within the Parts segment, profit improved by $36 million, primarily driven by volume and pricing strategies and supported by the benefit of lower structural costs,” says Andrew J. Cederoth, Navistar CFO and Executive Vice President.
Within the Truck segment, profit declined by $31 million, driven primarily by the decline in volume partially offset by lower structural costs. Included in the results is a portion of the costs associated with closing Garland, which were $12 million in the quarter.
The Engine segment profit improved $93 million, primarily due to lower warranty costs of $83 million for prior-period adjustments. Engine also benefited from the improvement in South America at MWM and lower overall structural costs. Included in the Engine results are NCPs of $10 million and accelerated depreciation on tooling related to the 15-liter engine of $10 million.
Navistar also noted that the company was on track to ship its 13 liter engine by the end of next month.