Revenue fell 12 percent to $2.82 billion in the three months ended July 31.
Analysts on average had expected revenue of $2.92 billion.
Navistar, which has a truck assembly plant in Springfield, is developing catalytic reduction engines to reduce nitrogen oxide emission by 70-95 percent after its diesel engine redesign failed to reduce the green house gas’ level last year. [
The company, unlike rivals Paccar Inc and Volvo AB , tried to cut emissions without using additive urea.
After the U.S. Environmental Protection Agency denied approval for the new engine, Navistar had to source engines from rival Cummins Inc.
The company, which replaced its management as billions of dollars were wiped off from its market capitalization, reported a loss of $247 million, or $3.06 per share in the third quarter.
Adjusted loss was $2.73 per share, compared with a loss of $1.30 per share that analysts expected, according to Thomson Reuters I/B/E/S.
Navistar had reported a profit of $84 million, or $1.22 per share, a year earlier.
The company said it expects additional annual savings of $50 to $60 million, starting fiscal year 2014, as a result of cost-cutting measures. Navistar, which employed 18,500 people last year, expects to cut jobs by the end of the fiscal year.
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