But, overall revenue for the company is down for this fiscal year as well as the quarter that ended in April. For the latter, revenue was down by 36% compared to the same period last year.
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Revenues reported during the second quarter this year were $1.9 billion verses the about $3 billion reported during the same time frame in the 2019 fiscal year. During a six month period that ended in April, Navistar reported revenues of about $3.8 billion, compared to total revenues of about $5.4 billion reported during the same six-month period last fiscal year.
"It's been a unique and a very busy quarter. Like many businesses, we've worked hard to keep our team safe, understand the changes in the trucking industry and adapt as appropriate," said Troy Clarke, the chairman, president and CEO of Navistar.
“Unfortunately, the wind down of the economy due to the COVID pandemic played out during our (second quarter) with the quarter ending in the middle of the stay-at-home phase of the crisis,” he added during a Thursday morning conference call.
As a result of the global health crisis and its immediate impact on the economy, Navistar suspended production at its Springfield plant in March. The main reason for the stoppage in production was because of “disruptions in the supply chain,” according to a news release from the company in the beginning of April.
The stoppage in Springfield was originally expected to last until the end of April as the supply chain continued to be interrupted. However, production did not resume at the plant until May 11, when its main line went back to building mostly medium-duty commercial trucks.
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At least 700 workers who were temporarily laid off were called back to work during that time, according to Chris Blizard, the president of UAW Local 402. His union represents assembly production workers at the plant as well as those in skilled trades.
Navistar has implemented several safety measures at its facilities during the pandemic. Including at the Springfield plant as production resumed on its main assembly line.
Those measures include providing employees with personal protective equipment, including face coverings, sanitizing supplies and wipes. Employees are also screened for symptoms associated with COVID-19.
Representatives of Navistar said they have also implemented social distancing when possible.
“We look forward to (the next quarter) with more sections of the economy moving into the reopening phase. The next few months will provide insight into the nature of the recovery phase, which will extend through the remainder of our fiscal year and into the next,” Clarke said on Thursday.
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