Navistar International Corp (NAV.N) reported a bad news last Tuesday. The company reported that they got a larger-than-expected loss. Their loss is known to be due to their warranty and restructuring costs. Getting loss is definitely a bad news for any company, what is more if they got a larger-than-expected loss, right?
During the fourth quarter that ended on the 31st of October 2014, the Illinois-based truck maker, The Lisle, reported a total of $72 million net loss. This is equivalent to 88 cent for every share. However, it is much more acceptable compared to their total loss of $154 million during last year’s fourth quarter.
Their sale rose by nine percent to a total of $3 billion. So, how did they end up losing instead of gaining with their strong sales? It is simply because even with the strong demands for the company’s commercial vehicles in the North America, it was still offset by the charges that are in line with their ongoing restructuring in both South and North America. Their charges sum up to a total of $60 million. With this fact, it is no longer surprising why the Navista International Corp reported a huge amount of loss.
