“Our fiscal third quarter opened during the middle of many stay-at-home orders and ended with sections of the economy beginning to reopen, and our results certainly reflect this,” said Persio Lisboa, the company’s president and CEO.
Adjusted net income for the quarter was a loss of $8 million compared to an adjusted income of $147 million in the third quarter of last year.
Navistar also finished that quarter for this year with $1.65 billion in consolidated cash, cash equivalents and marketable securities.
The three month period that ended in July saw the company reporting revenues of $1.7 billion, down 45% when compared to the same period in 2019.
During a nine month period that ended in July, Navistar reported revenues of about $5.4 billion, compared to total revenues of about $8.4 billion reported during the same period last fiscal year.
In terms of the company’s truck segment, net sales were $1.2 billion during the quarter, 50% of those reported roughly the same time last year.
Navistar largely attributed the year-over-year decrease to lower volumes driven by weaker industry conditions, in which the coronavirus pandemic played a part according to a release from the company on Wednesday.
Overall, the truck segment incurred a net loss of $22 million, compared to a profit of $167 million during the same quarter in 2019.
Navistar employs more than 1,000 people in Clark County and has a manufacturing facility in Springfield, which builds medium-duty trucks as well as cutaway vans for General Motors.
As a result of the global health crisis and its immediate impact on the economy, production was suspended at the Springfield plant in March due to disruptions in the supply chain.
However, production resumed on the plant’s main line, which builds primarily medium-duty trucks, in May and on the other line, which builds the cutaway vans, in June.
Local union president Chris Blizard said workers temporarily laid off due to that stoppage in production have since returned to the plant.
His union UAW Local 402 represents assembly production workers as well as those in skilled trades at Navistar’s Springfield plant.
In addition, the company has sent at least 124 call back letters as of early August to workers who were indefinitely laid off at the plant prior to the the pandemic.
More than 300 of those workers were placed on indefinite lay off status starting last year as the company scaled back truck production in Springfield to align with customer demand.
On Thursday, the company announced that it received a revised offer from a subsidiary of Volkswagen, upping the price that the latter is willing to pay in an effort to acquire Navistar’s remaining shares.
TRATON SE is now offering to buy those shares for $43 per share in cash instead of its original offer of $35 per share.
Facts & Figures
$37 million: Net loss reported during Navistar’s third quarter of 2020
$1.7 billion: Revenue reported by the company during that quarter, which ended in July
$1.2 billion: Net sales reported for the company’s truck segment during the quarter
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