Navistar International reported a Q1/17 net loss of $62 million compared to a Q1/16 net loss of $33 million. Revenues in the quarter were $1.7 billion, a decline of 6% compared to $1.8 billion in the first quarter last year. The decrease primarily reflects lower truck volumes due to soft Class 8 heavy industry conditions and lower global sales.

“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 CEO. “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.”

The following highlights were excerpted from the news release:

• In Q1/17, Navistar began customer deliveries of its new International LT Series Class 8, long-haul truck featuring advanced technologies that deliver unrivaled fuel efficiency, best-in-class uptime and unparalleled driver appeal.
• Navistar plans to continue to introduce new products every four to six months through the end of 2018, refreshing its entire product portfolio, while also expanding it with its re-entry into Class 4/5 vehicles through its collaboration with General Motors.
• Retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be in the range of 305,000 units to 335,000 units for fiscal year 2017.
• Truck segment Q1/17 net sales decreased $105 million, or 9%, primarily due to lower Core (Class 6-8 trucks and buses in the U.S. and Canada) truck volumes as a result of softer industry conditions, the end of CAT-branded units sold to Caterpillar and the sale of Pure Power Technologies, both of which occurred in the second quarter of 2016.
• The Truck segment loss increased to $69 million in Q1/17 versus a loss of $51 million in the same period one year ago. This was primarily driven by market pressures, the impact of lower core market volumes, and a decrease in other income due to the receipt of a one-time fee from a third party last year, partially offset by lower used truck losses, improved material costs and lower adjustments to pre-existing warranties.

Financial Services Segment

In Q1/17, the Financial Services segment net revenues decreased by $5 million, or 8%. The decrease was primarily driven by lower overall finance receivable balances and unfavorable movements in foreign currency exchange rates impacting its Mexican portfolio, partially offset by higher revenues from operating leases.

The Financial Services segment profit decreased by $13 million, or 50%. The decrease was primarily driven by lower interest margins, a decline in other revenue due to lower interest income from certain inter-company loans and an increase in the provision for loan losses in Mexico.

Net finance receivables at January 31, 2017 of $1,363 million were down 18.7% from $1,677 million at October 31, 2016.