Navistar More Than Doubles Quarterly Loss

Navistar International Inc. posted a net loss of $374 million in the fiscal second quarter ended April 30 compared with $172 million a year earlier.

Quarterly revenue fell 23% year over year to $2.5 billion. Navistar's truck volume dropped 34% compared with a 14% decline industrywide.

The company attributes its deeper loss to lower volume and a higher-than-expected $164 million charge for warranties on its diesel engines that failed to meet 2010 emissions standards. But Navistar reduced overhead and product development costs by $60 million and $32 million, respectively, in the quarter.

Since last year, the company has been equipping its heavy-duty trucks with 15-liter diesel engines from rival Cummins Inc. In April Navistar began selling trucks outfitted with its own 13-liter diesel engine that meets federal emission regulations with the help of Cummins technology.

CEO Troy Clarke says he is disappointed with customers' slow acceptance of its new vehicles. He says the company aims to boost its share of the U.S. heavy truck market to 18% by year-end from 15% in the latest quarter.

Navistar says it is considering consolidation of its engine facilities, which are located in Melrose Park, Ill., and Huntsville, Ala. Clarke predicts that decision will come next year.