Navistar reports net loss of $236M for 4th quarter of 2020

File photo of Navistar employees building a truck on the assembly line at its Springfield plant. Navistar reported a net loss of $236 million during its fourth quarter of 2020. Bill Lackey/Staff
File photo of Navistar employees building a truck on the assembly line at its Springfield plant. Navistar reported a net loss of $236 million during its fourth quarter of 2020. Bill Lackey/Staff

Navistar reported a net loss of $236 million during its fourth quarter, a three-month period that ended in October.

That is a change from a net income of $102 million reported during the same quarter in 2019. For the entire fiscal year of 2020, the truck manufacturer reported a net loss of $347 million compared to the net income of $221 million reported for fiscal year 2019.

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Results during the fourth quarter of this year were impacted by several items including a $289 million accrual related to a profit sharing dispute, a $58 million settlement with the Department of Justice related to Navistar Defense and a $14 million charge related to pre-existing warranties, according to a news release from the company.

Revenues reported during the fourth quarter were $2.1 billion compared to $2.8 billion the year before. Revenues for the entire fiscal year were $7.5 billion compared to the $11.25 billion reported last year.

The decrease in revenues were primarily driven by the impact that the coronavirus pandemic has had on the trucking industry, the release stated.

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Adjusted net income for the fourth quarter was $61 million versus the $114 million reported during the same quarter last year. Adjusted net income for fiscal year 2020 was $10 million versus $423 million in 2019.

Navistar finished the fourth quarter of 2020 with $1.8 billion in consolidated cash and cash equivalents.

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