Navistar International Corporation (NAV) saw its loss widen to $62 million, or $0.76 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $33 million, or $0.40 a share. Revenue during the quarter dropped 5.78 percent to $1,663 million from $1,765 million in the previous year period. Gross margin for the quarter expanded 68 basis points over the previous year period to 17.62 percent. Operating margin for the quarter stood at negative 2.04 percent as compared to a negative 0.40 percent for the previous year period.
However, the adjusted EBITDA for the quarter stood at $55 million compared with $77 million in the prior year period. At the same time, adjusted EBITDA margin contracted 106 basis points in the quarter to 3.31 percent from 4.36 percent in the last year period.
"Our results are on track with our plan for the year, and demonstrate our ability to effectively manage costs at a time of persistent Class 8 industry headwinds," said Troy A. Clarke, chairman, president and chief executive officer. “Our order share continues to outpace our market share, which confirms our confidence in the retail share improvement to come. At the same time, we are rolling out a steady stream of new product introductions that are helping us generate new sales opportunities, and position us to take advantage of the anticipated Class 8 rebound in the second half."
Operating cash flow turns positive
Navistar International Corp has generated cash of $22 million from operating activities during the quarter as against cash outgo of $102 million in the last year period. The company has spent $207 million cash to meet investing activities during the quarter as against cash outgo of $59 million in the last year period. It has incurred capital expenditure of $68 million on net basis during the quarter, up 6.25 percent or $4 million from year ago period.
The company has spent $53 million cash to carry out financing activities during the quarter as against cash outgo of $175 million in the last year period.
Cash and cash equivalents stood at $573 million as on Jan. 31, 2017, down 1.04 percent or $6 million from $579 million on Jan. 31, 2016.
Working capital increases sharply
Navistar International Corporation has recorded an increase in the working capital over the last year. It stood at $683 million as at Jan. 31, 2017, up 391.37 percent or $544 million from $139 million on Jan. 31, 2016. Current ratio was at 1.25 as on Jan. 31, 2017, up from 1.04 on Jan. 31, 2016.
Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 106 days for the last year period. Days sales outstanding went down to 100 days for the quarter compared with 104 days for the same period last year.
Days inventory outstanding has decreased to 34 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding went up to 79 days for the quarter from 73 for the same period last year.
Debt comes down marginally
Navistar International Corporation has recorded a decline in total debt over the last one year. It stood at $4,865 million as on Jan. 31, 2017, down 4.59 percent or $234 million from $5,099 million on Jan. 31, 2016. Total debt was 90.19 percent of total assets as on Jan. 31, 2017, compared with 85.27 percent on Jan. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
