Navistar International announced a Q1/16 net loss of $33 million, an improvement of 21% compared to Q1/15 net loss of $42 million. Revenues in the quarter were $1.8 billion, a decline of 27% compared to $2.4 billion in the first quarter last year. The decline reflects lower volumes in its core U.S. and Canadian markets, due to softer industry conditions, lower volumes in Mexico and export markets, which are reflective if a stronger U.S. dollar, and lower engine volumes in Brazil, due to ongoing weak economic conditions in that country. Additionally, one-quarter of the year-over-year decline was due to the discontinuation of the company’s Blue Diamond Truck joint venture in mid-2015.

The truck segment’s Q1/16 net sales decreased $573 million, or 34%, due to lower core truck volumes as a result of softer industry conditions, a decline of $158 million in Ford sales through the BDT joint venture as production for the JV ceased in mid-2015 and a decline in export truck markets. Truck charge-outs in the company’s core market were down 19% year-over-year.

The truck segment loss increased by $33 million in Q1/16 versus Q1/15. Lower structural and product costs and lower accelerated depreciation charges in Q1/16 were more than offset by the impact of lower volumes and an increase in used truck reserves this year, and a benefit for adjustments to pre-existing warranties in the Q1/15 of $55 million.

In its outlook, Navistar said it continues to forecast 2016 retail deliveries of Class 6-8 trucks and buses in the U.S. and Canada of 350,000 units-380,000 units. The company said the Class 8 (heavy) market will be down for the 2016 fiscal year, at 240,000-270,000 units versus 279,000 for 2015.