Navistar International Corporation (NYSE:NAV) saw its shares dive on early Tuesday markets, on announcing fourth-quarter results.
The company, based in Lisle, Illinois, announced Q4 2019 net income of $102 million, or $1.02 per diluted share, compared to Q4 2018 net income of $188 million, or $1.89 per diluted share
Adjusted net income for the fourth quarter was $114 million versus $189 million in the same period one year ago.
Fourth-quarter 2019 adjusted EBITDA was $219 million versus $322 million one year ago.
Revenues in the quarter were $2.8 billion, down 16% compared to fourth quarter 2018.The revenue decrease was largely driven by very strong fourth-quarter 2018 vehicle chargeouts following supplier production constraints in the third quarter of that year, the impact of the sale of Navistar Defense in December 2018, and lower industry demand in the quarter.
During the year, Navistar’s Core market share grew by 1.3 points, to 18.8%. The company increased its school bus market share to 35.8%, where it is once again the industry leader, increased its Class 6-7 medium duty market share to 27%, as well as increased its Class 8 market share to 14.1%. This marks the company’s third consecutive year of Core market share growth
Navistar finished fourth quarter 2019 with $1.4 billion in consolidated cash, cash equivalents and marketable securities, and with $1.3 billion in manufacturing cash, cash equivalents and marketable securities
According to CEO Troy Clarke, “During 2019, we grew adjusted EBITDA and adjusted net income while growing our Core market share to 19 percent, for a total of three points of share gain in the last three years.
“Our Navistar 4.0 strategy builds on this performance and incorporates major investments in the business that will deliver strong benefits for both customers and shareholders.”
NAV shares plunged $2.44, or 7.5%, to $29.91