* Q4 revenue slumps 17.1 pct
* Says 2017 revenue would be similar to 2016
* Shares fall as much as 11.59 pct in morning trade
(Adds background, CEO and analyst comments, shares)
By Arunima Banerjee
Dec 20 Navistar International Corp
posted its seventh straight decline in quarterly revenue, hurt
by weak sales of its heavy-duty trucks, and it said industry
conditions would challenge its results in early 2017 before
improving in the second half.
The truckmaker's shares fell as much as 11.59 percent to
$26.25 in morning trading on Tuesday.
Heavy-duty truck orders have been declining as trucking
companies adjust their fleets amid lackluster retail sales and
industrial output in the United States.
Companies such as Cummins Inc and Goodyear Tire &
Rubber Co have also been hit by a fall in U.S. heavy-duty
Navistar expects 2017 class 8 industry volumes to range
between 190,000 and 220,000 trucks while class 6, 7 and buses
would total 305,000 to 335,000 vehicles, Chief Executive Troy
Clarke said on a conference call.
Orders for Class 8 highway trucks - the 18-wheelers that
haul freight across the country - tumbled 46.5 percent in
October versus the same period a year earlier, according to
preliminary data from industry forecaster FTR. (bit.ly/1UqhG1Z)
"It (truck cycle) will begin to recover as the industry
meets new and well-performing trucks," Clarke added.
The company said its 2017 revenue would be similar to 2016.
"The outlook bakes in continued industry weakness through
the first half of 2017," Jefferies analyst Stephen Volkmann
wrote in a client note.
Navistar said it would begin manufacturing General Motors
Co's cutaway model G van next quarter and added that it
was making "good progress" on completing an alliance with
Volkswagen in September agreed to an engine technology and
purchasing alliance with Navistar and bought a 16.6 percent
stake in the company.
Navistar, which also makes school buses and dump trucks,
said its cash on hand decreased to $804 million from $912
million a year earlier.
Lisle, Illinois-based Navistar, once a leading maker of
truck engines, is in the process of turning itself around after
struggling with a costly and unsuccessful smog-reduction system,
which did not meet regulatory standards.
The emissions-related debacle sent the company's warranty
expenses sky-rocketing even as sales tumbled.
Navistar's net loss attributable to shareholders narrowed to
$34 million, or 42 cents per share, in the fourth quarter ended
Oct. 31 from $50 million, or 61 cents per share, a year earlier.
Revenue fell 17.1 percent to $2.06 billion.
Up to Monday's close, Navistar's shares had more than
tripled this year.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Anil
D'Silva and Martina D'Couto)