Navistar reported a net loss of US$50 million for the fourth quarter on revenues of $2.5 billion.
The quarter included $69 million in restructuring-related and impairment charges, $40 million in pre-existing warranty adjustments and $14 million in debt refinancing fees and costs.
Revenues were down 17% compared to 4Q2014 as a result of reduced volumes in the company’s export and global operations and lower Class 8 truck charge-outs in its core market.
However, Navistar realized a $74 million improvement in structural costs in the quarter, the company says.
During the fourth quarter, Navistar announced a truck agreement with GM to produce medium-duty conventional cab Classes 4/5 trucks, which will enter production in 2018.
For the full year, Navistar reported a net loss of $184 million versus a net loss of $619 million the year before.
Charge-outs in its core North America market increased by 3,500 units this year, up 6%, Navistar revealed. That reflects an 18% increase in Classes 6/7 trucks and a 7% increase in Class 8 severe-service vehicles, but a 4% decline in Class 8 heavy trucks. Its Class 8 market share was 16% this year.
“For the third consecutive year, we generated around $200 million in adjusted EBITDA improvement, and we expect this improvement trend to continue in 2016,” CEO Troy Clarke said. “We are building the best products we’ve ever built, and we are winning back customers. We have identified and begun implementing actions to further lower our material spend and structural costs, while driving greater efficiencies in our manufacturing operations. As a result, we expect to build on our 2015 progress, and our goal is to achieve profitability and be free cash flow positive in 2016.”