Navistar sees quarterly profits for second time in 5 years, gains $37M in 2017 3Q

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Updated Sep 8, 2017

Product Detail Gallery Hx2 Dt 1280x450Navistar International Corp., the parent company of International Trucks, reported Wednesday a net income of $37 million for the third quarter of the 2017 fiscal year, which ended July 31. The quarter was only the second time since 2012 that Navistar reported a quarterly profit, with losses stemming from warranty repairs of its defunct MaxxForce engine and, in some cases, sluggish truck sales.

In the same quarter in 2016, Navistar reported a loss of $34 million. Revenus in 2017’s third quarter were $2.2 billion, up 6 percent from the same period last year. Navistar says the revenue gains came primarily from its truck segment, whose revenue grew 10 percent from the same period a year ago, the company says. Through the first 9 months of the fiscal year, the company reported a net loss of $105 million.

Truck sales accounted for $1.5 billion of the company’s revenue, and its income grew to $7 million — up $61 million from the same period a year ago. Navistar’s truck segment lost $54 million in 2016’s third quarter. Through the first 9 months of the 2017 fiscal year, the company’s truck segment has lost $118 million.

Sales in the company’s parts segment fell $11 million from the same period last year, but the segment still recorded a profit of $157 million. The segment saw a profit of $152 million in the same quarter last year.

Despite gains in its truck and parts segments, the company’s corporate and eliminations segment lost $154 million, offsetting the gains elsewhere. The company did not specify what these losses were directly attributable to, other than corporate restructuring.