Navistar International announced a Q4/16 net loss of $34 million compared to a Q4/15 net loss of $50 million. Revenues in the quarter were $2.1 billion.

Navistar said revenues in the quarter declined 17% compared to Q4/15. The revenue decrease was largely driven by an 18% decline in the company’s core (Class 6-8 trucks and buses in the U.S. and Canada) charge-outs, to 13,000 units. This decline largely reflects a continued softening of Class 8 industry volumes in the U.S. and Canadian markets.

Troy A. Clarke, Navistar president and CEO said, “Although we expect tough industry conditions to continue through the first half of 2017, we see further opportunities to continue to reduce our break-even point, including leveraging some early cost synergies from the Volkswagen Truck and Bus alliance. The alliance announcement has been positively received by our customers, which when combined with our ongoing cadence of new product offerings, confirms our confidence in our improving standing in the market.”

The company provided the following guidance: retail deliveries of Class 6-8 trucks and buses in the U.S. and Canada are forecast to be in the range of 305,000 units to 335,000 units for fiscal year 2017.