Navistar International Corp. (NYSE: NAV) reported third-quarter 2012 earnings per share (EPS) of $1.22 on $3.3 billion in revenue before markets opened today. In the same period a year ago, the truck and engine builder reported EPS of $18.24 on revenue of $3.54 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for a net loss of $1.36 per share and $2.96 billion in revenue.
On a pretax basis, the company posted a loss of $100 million, and the company fired its CEO just a week ago in a display of its unhappiness. The new CEO said:
Clearly we are not pleased with these results. … Navistar is a great company with great people and great brands. With a laser focus on getting our quality right and hitting our clean engine launch dates, combined with actions to maximize cash flow and improve our balance sheet, I believe we can accelerate the pace of progress to deliver significant improvements during the next 12 to 18 months.
Navistar killed development on its own clean diesel engine after failing to come to an agreement over nitrogen oxide emissions with the U.S. EPA. The company pays a fine of $3,755 for each noncompliant engine it ships, and it will begin using engines from Cummins Inc. (NYSE: CMI) early next year.
Navistar also announced that it will complete a voluntary separation program in its salaried workforce. The company expects to generate savings of $70 million to $80 million annually after the firings are completed. Navistar's goal is to eliminate $150 million to $175 million in costs beginning in fiscal 2013.
The company did not offer any guidance. The consensus estimate for the fourth quarter of 2012 calls for EPS of $0.21 on revenue of $3.56 billion. Full fiscal year 2012 estimates call for a net loss of $3.62 per share on revenue of $12.92 billion.
The company's shares are inactive in premarket trading this morning, having closed last night at $20.41. The current 52-week range is $19.79 to $48.18. Thomson Reuters had a consensus analyst price target of $28.83 before today's results were announced.
Filed under: 24/7 Wall St. Wire, Earnings, Industrials Tagged: CMI, NAV