Navistar reports net income of $163M for 2nd quarter

Navistar employees build a truck on the assembly line at Springfield plant in 2017. Bill Lackey/Staff
Navistar employees build a truck on the assembly line at Springfield plant in 2017. Bill Lackey/Staff

Navistar reported a net income of $163 million during its second quarter of fiscal year 2021, an improvement when compared to the same period last year that saw a net loss of $38 million.

Revenues for the quarter this fiscal year, which tracked a three month period that ended in April, were $2.2 billion. That is up from the same period last fiscal year, which saw revenues of $1.9 billion.

Navistar also finished the second quarter of fiscal year 2021 with $1.2 billion in consolidated cash and cash equivalents.

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This is according to earning results for the second quarter that were released by Navistar Tuesday.

The results also showed an increase in the number of trucks and buses built by Navistar that had been invoiced to customers between the first and second quarters of this fiscal year.

Those invoices are also known as charge outs and the company noted that 13,900 units fell under that category during the second quarter.

That relates to medium and heavy duty trucks as well as buses in the United States and Canada market.

In comparison, charge outs for the company’s medium and heavy duty trucks and buses in the United States and Canada market were 10,600 units in the first quarter of 2021.

“The strong trucking industry, fueled by robust economic growth, is supporting higher order activity by our customers and our team is working hard to overcome the supply chain challenges to best support their transportation needs,” said Navistar’s CEO Persio Lisboa in a news release on Tuesday.

Navistar did not hold a conference call with investors this week related to the results of the second quarter earnings due to the pending merger proposal with Traton SE, Volkswagen’s truck unit.

The news release sent by Navistar about second quarter earnings did mention that the company had increased production rates during that period, including adding a second shift at its truck assembly plant in Escobedo, Mexico.

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However, the pace of the increases has been slower than planned due to supply chain constraints, the news release stated.

Navistar announced in April that it would be increasing production rates at its main assembly line in Springfield. Production there will go from 70 units per day to 115 units per day starting in July.

Navistar’s Springfield plant builds medium-duty trucks on its main line as well as cutaway vans for General Motors on its other assembly line.

As a result, the company is planning to hire up to 350 additional people at the Springfield plant to accommodate the production increases.

In addition to the new hires, the truck manufacturer made plan in April to bring back employees who were on indefinite layoff.

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