Navistar International announced Q2/16 net income of $4 million compared to a Q2/15 net loss of $64 million. Revenues in the quarter were $2.2 billion, down 18% compared to $2.7 billion in Q2/15.

The decline reflects lower volumes in the company’s core U.S. and Canadian markets, due to softer industry conditions and the discontinuation of the company’s Blue Diamond Truck (BDT) joint venture in mid-2015, as well as lower engine volumes in Brazil, due to ongoing weak economic conditions in that country.

Navistar said its Financial Services segment profit increased by $3 million, or 14% year-over-year in Q2/16, primarily due to an increase in gains on lease terminations, a decrease in the provision for loan losses and cost reduction initiatives, partially offset by a decrease in revenue.

For the second half of 2016, Navistar lowered its industry guidance range by 20,000 units, due to softening Class 8 market conditions. Given this, along with slower than anticipated market share growth domestically, weaker export markets and the impact of a stronger dollar, the company reduced its full-year revenue and adjusted EBITDA guidance.

Navistar reduced its forecast of fiscal year 2016 retail deliveries of Class 6-8 trucks and buses in the U.S. and Canada to 330,000 to 360,000 units. The truck-maker said it reduced its Class 8 market projection to 220,000 to 250,000 units, but maintained its projection that the medium, school bus and severe service segments will grow in 2016 versus 2015.

“While we were net income positive in the second quarter, it will now be difficult for us to be profitable for the entire year given the tougher than anticipated market conditions, primarily due to the lower outlook for Class 8 industry volumes,” said Troy A. Clarke, Navistar president and CEO. “We are confident we will generate and implement additional performance improvements to partially offset current industry conditions.”