Navistar Reports Second Quarter Results - WICU12 HD WSEE Erie, PA News, Sports, Weather and Events

Navistar Reports Second Quarter Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Navistar International Corporation

- Navistar reports net loss of $297 million on revenues of $2.7 billion

- Results include $151 million in asset impairment charges, primarily related to Brazil operations

- EBITDA exceeds guidance, excluding one-time items and pre-existing warranty expense

- Orders and retail market share for medium- and heavy-duty up sequentially and year-over-year

- Company reduces structural costs by $92 million

- Ends quarter with $1.06 billion in manufacturing cash, in line with guidance

- Finishes quarter with 82 percent increase in order backlog year-over-year

LISLE, Ill., June 5, 2014 /PRNewswire/ -- Navistar International Corporation (NYSE: NAV) today announced a second quarter 2014 net loss of $297 million, or $3.65 per diluted share, compared to a second quarter 2013 net loss of $374 million, or $4.65 per diluted share. Revenues in the quarter were $2.7 billion, up from $2.5 billion in the second quarter of 2013. Second quarter 2014 results include $151 million in intangible asset impairment charges and a $29 million tax valuation allowance, both primarily related to declines in actual and forecasted results for the company's operations in Brazil.

Navistar Logo.

"We continue to make progress with our 'Drive to Deliver' and we have seen a number of encouraging signs this quarter, including improvements in our market share and strong order backlog, positive trends in our warranty expense and spend, and higher than expected structural cost reductions," said Troy A. Clarke, Navistar president and chief executive officer. "This is the third consecutive quarter where we've met or exceeded our EBITDA guidance and we have now met or exceeded our cash guidance for seven straight quarters."

Second quarter 2014 EBITDA was a loss of $119 million, which included the $151 million intangible asset impairment charge, $42 million in pre-existing warranty adjustments and $8 million in restructuring charges. As a result, adjusted EBITDA was $82 million, which exceeded the company's second quarter guidance of between $25 million to $75 million, excluding pre-existing warranty and one-time items. Navistar finished the second quarter 2014 with $1.06 billion in manufacturing cash, cash equivalents and marketable securities, in line with its cash guidance range of $1.0 billion to $1.1 billion.

"We still have much work to do in our core North America operations as well as in Brazil, where we are taking actions to lower our breakeven point to offset the ongoing economic challenges in that country," Clarke added. "Overall, we feel good about our steady gains and positive momentum."

Second quarter highlights include sequential and year-over-year improvements both in orders and retail market share for medium- and heavy-duty trucks. The company's medium-duty Class 6/7 retail market share was 26.4 percent for the quarter, up from 17.3 percent in the first quarter of 2014 and 25.8 percent in the second quarter of 2013. Combined Class 8 retail market share was 14.9 percent for the quarter, up from 13.9 percent in the first quarter of 2014 and 14.5 percent in the second quarter of 2013. Navistar's combined Class 6-8 truck and bus retail market share for the second quarter was 18.5 percent, and the company ended the period with an order backlog 82 percent higher than this time one year ago. 

Navistar reduced its year-over-year structural costs in the quarter by an additional $92 million, including $75 million in savings from selling, general, and administrative (SG&A) expense and $17 million in reduced engineering costs. Last month, the company initiated additional restructuring activities in North America, which will be completed by the end of this fiscal year and are expected to generate $40 million in SG&A savings annually starting in 2015.

Earlier in the quarter, Navistar announced its plans to consolidate mid-range engine manufacturing by idling its Huntsville, Ala. mid-range engine plant and moving production to Melrose Park, Ill. Those plans remain on track and once completed later this summer, are expected to reduce Navistar's operating costs by more than $22 million annually.

The company also announced during the second quarter its plans to add selective catalytic reduction (SCR) emissions technology to the company's proprietary 9- and 10-liter, high horsepower inline six-cylinder (I-6) engines. That launch is on track and progressing well, with first customer deliveries slated for later this summer. Test units have been running for the past several months and initial results indicate an 8-12 percent improvement in fuel economy, depending on the application.

Navistar's warranty spend improved in the second quarter, down $23 million-or 13 percent-year-over-year. This improvement was driven by lower costs per repair, fewer EGR engines in the warranty period and ongoing quality improvements for its EGR engines as well as new product launches with SCR engines.

Also during the quarter, the company completed the sale of $411 million of new convertible notes due in April 2019. The net proceeds from the issuance were used to repurchase the majority of the convertible notes that come due in October 2014. The company anticipates repaying the $166 million balance with cash on hand. As a result, the company will have no major debt maturities come due until 2017.

The company provided the following guidance updates:

  • Raised Class 8 industry forecast for FY2014 (U.S./Canada) to 225,000-235,000.
  • Increased FY2014 structural cost savings goal to $250 million, versus its previous goal of $175 million.
  • Projects Q3 EBITDA between $75 million - $125 million, excluding pre-existing warranty and one-time items.
  • Projects between $950 million and $1.05 billion in manufacturing cash, cash equivalents and marketable securities at the end of Q3.

"We saw our market share bounce back strongly in the second quarter and we look to build on this in the second half of our fiscal year," Clarke said. "We also expect our financial performance will continue to build quarter-over-quarter, with third quarter results better than second quarter, and our fourth quarter performance better than the third quarter. We are progressing and building momentum."

Summary of Financial Results:


Second Quarter


First Half

(in millions, except per share data)

2014



2013



2014



2013


Sales and revenues, net

$

2,746



$

2,526



$

4,954



$

5,163


Segment Results:












North America Truck

$

(134)



$

(303)



$

(341)



$

(404)


North America Parts

126



114



230



231


Global Operations

(150)



32



(183)



22


Financial Services

24



19



47



41














Loss from continuing operations, net of tax(A)

$

(298)



$

(353)



$

(547)



$

(467)


Net loss(A)

(297)



(374)



(545)



(497)














Diluted loss per share from continuing operations(A)

$

(3.66)



$

(4.39)



$

(6.73)



$

(5.82)


Diluted loss per share(A)

(3.65)



(4.65)



(6.70)



(6.19)



________________

(A) Amounts attributable to Navistar International Corporation.

 

North America Truck - For the second quarter 2014, the North America truck segment recorded a loss of $134 million, compared with a year-ago second quarter loss of $303 million. The year-over-year improvement was primarily driven by lower charges for adjustments related to pre-existing warranties and increased structural cost savings. Chargeouts for traditional markets were up 25 percent, reflecting a 49 percent increase of Class 8 heavy-duty trucks and a 20 percent increase in Class 6/7 medium-duty trucks.

North America Parts - For the second quarter 2014, the North America parts segment recorded a profit of $126 million, compared to a year-ago second quarter profit of $114 million. Parts revenues in the quarter declined by 2 percent due to lower military sales, which were partially offset by higher commercial parts sales. However, profit improved by 11 percent year-over-year driven by lower SG&A expenses resulting from the company's ongoing cost-reduction initiatives and the stronger performance in commercial markets.

Global Operations - For the second quarter 2014, global operations recorded a loss of $150 million compared to a year-ago second quarter profit of $32 million. The year-over-year decline was primarily driven by asset impairment charges related to declines in actual and forecasted results for the company's operations in Brazil. Also, second quarter 2013 results included a $28 million gain from the sale of the company's interest in the Mahindra joint ventures.

Financial Services - For the second quarter 2014, the financial services segment recorded a profit of $24 million compared to second quarter 2013 profit of $19 million. The year-over-year increase was due primarily to lower structural costs resulting from the company's ongoing cost-reduction initiatives and intercompany loans.

About Navistar
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, and IC Bus brand school and commercial buses. An affiliate also provides truck and diesel engine service parts. Another affiliate offers financing services. The International® ProStar® with Cummins ISX15 and International® TerraStar® 4x4 were named 2014 heavy-duty and medium-duty commercial truck of the year, respectively, by the American Truck Dealers (ATD) association. Additional information is available at www.Navistar.com.

Forward-Looking Statement
Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and the company assumes no obligation to update the information included in this report. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended October 31, 2013. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.

 

Navistar International Corporation and Subsidiaries

Consolidated Statements of Operations

(Unaudited)



Three Months Ended April 30,


Six Months Ended April 30,

(in millions, except per share data)

2014



2013



2014



2013


Sales and revenues












Sales of manufactured products, net

2,708



2,487



4,877



5,085


Finance revenues

38



39



77



78


  Sales and revenues, net

2,746



2,526



4,954



5,163


Costs and expenses












Costs of products sold

2,468



2,363



4,482



4,649


Restructuring charges

8



$

6



$

11



$

8


Asset impairment charges

151



-



169



-


Selling, general and administrative expenses

237



312



476



597


Engineering and product development costs

83



100



173



211


Interest expense

74



90



156



164


Other expense (income), net

(8)



(19)



6



(57)


  Total costs and expenses

3,013



2,852



5,473



5,572


Equity in income of non-consolidated affiliates

3



4



3



3


Loss from continuing operations before income taxes

(264)



(322)



(516)



(406)


Income tax expense

(23)



(22)



(11)



(37)


Loss from continuing operations

(287)



(344)



(527)



(443)


Income (loss) from discontinued operations, net of tax

1



(21)



2



(30)


Net loss

(286)



(365)



(525)



(473)


Less: Net income attributable to non-controlling interests

11



9



20



24


Net loss attributable to Navistar International Corporation

$

(297)



$

(374)



$

(545)



$

(497)














Amounts attributable to Navistar International Corporation common shareholders:










Loss from continuing operations, net of tax

$

(298)



$

(353)



$

(547)



$

(467)


Income (loss) from discontinued operations, net of tax

1



(21)



2



(30)


Net loss

$

(297)



$

(374)



$

(545)



$

(497)














Earnings (loss) per share:












   Basic:












   Continuing operations

$

(3.66)



$

(4.39)



$

(6.73)



$

(5.82)


   Discontinued operations

0.01



(0.26)



0.03



(0.37)



$

(3.65)



$

(4.65)



$

(6.70)



$

(6.19)


   Diluted:












   Continuing operations

$

(3.66)



$

(4.39)



$

(6.73)



$

(5.82)


   Discontinued operations

0.01



(0.26)



0.03



(0.37)



$

(3.65)



$

(4.65)



$

(6.70)



$

(6.19)














Weighted average shares outstanding:












Basic

81.4



80.4



81.3



80.3


Diluted

81.4



80.4



81.3



80.3


 

 

Navistar International Corporation and Subsidiaries

Consolidated Balance Sheets



April 30,


October 31,

(in millions, except per share data)

2014


2013

ASSETS

(Unaudited)




Current assets






Cash and cash equivalents

$

594



$

755


Marketable securities

534



830


Trade and other receivables, net

630



737


Finance receivables, net

1,713



1,597


Inventories

1,384



1,210


Deferred taxes, net

39



72


Other current assets

228



258


Total current assets

5,122



5,459


Restricted cash

112



91


Trade and other receivables, net

28



29


Finance receivables, net

311



338


Investments in non-consolidated affiliates

69



77


Property and equipment (net of accumulated depreciation and amortization of $2,494 and $2,440, respectively)

1,693



1,741


Goodwill

38



184


Intangible assets (net of accumulated amortization of $102 and $97, respectively)

104



138


Deferred taxes, net

153



159


Other noncurrent assets

97



99


Total assets

$

7,727



$

8,315


LIABILITIES and STOCKHOLDERS' DEFICIT






Liabilities






Current liabilities






Notes payable and current maturities of long-term debt

$

956



$

1,163


Accounts payable

1,569



1,502


Other current liabilities

1,527



1,596


Total current liabilities

4,052



4,261


Long-term debt

4,144



3,922


Postretirement benefits liabilities

2,496



2,564


Deferred taxes, net

14



33


Other noncurrent liabilities

1,093



1,136


Total liabilities

11,799



11,916


Redeemable equity securities

2



4


Stockholders' deficit






Series D convertible junior preference stock

3



3


Common stock (86.8 shares issued, $0.10 par value per share and 220 shares authorized, all at both dates)

9



9


Additional paid-in capital

2,502



2,477


Accumulated deficit

(4,608)



(4,063)


Accumulated other comprehensive loss

(1,788)



(1,824)


Common stock held in treasury, at cost (5.5 and 6.3 shares, respectively)

(226)



(251)


Total stockholders' deficit attributable to Navistar International Corporation

(4,108)



(3,649)


Stockholders' equity attributable to non-controlling interests

34



44


Total stockholders' deficit

(4,074)



(3,605)


Total liabilities and stockholders' deficit

$

7,727



$

8,315


 

 

Navistar International Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)



Six Months Ended April 30,

(in millions)

2014



2013


Cash flows from operating activities






Net loss

(525)



(473)


Adjustments to reconcile net loss to net cash used in operating activities:






Depreciation and amortization

122



164


Depreciation of equipment leased to others

63



78


Deferred taxes, including change in valuation allowance

(2)



20


Asset impairment charges

169



8


Gain on sales of investments and businesses, net

-



(13)


Amortization of debt issuance costs and discount

27



31


Stock-based compensation

12



14


Provision for doubtful accounts, net of recoveries

9



13


Equity in income of non-consolidated affiliates, net of dividends

7



8


Write-off of debt issuance cost and discount

1



6


Other non-cash operating activities

(15)



(54)


Changes in other assets and liabilities, exclusive of the effects of businesses disposed

(194)



155


Net cash used in operating activities

(326)



(43)


Cash flows from investing activities






Purchases of marketable securities

(788)



(759)


Sales of marketable securities

902



358


Maturities of marketable securities

182



134


Net change in restricted cash and cash equivalents

(21)



44


Capital expenditures

(50)



(107)


Purchases of equipment leased to others

(108)



(295)


Proceeds from sales of property and equipment

20



19


Proceeds from sales of affiliates

5



30


Net cash provided by (used in) investing activities

142



(576)


Cash flows from financing activities






Proceeds from issuance of securitized debt

152



200


Principal payments on securitized debt

(81)



(402)


Proceeds from issuance of non-securitized debt

473



339


Principal payments on non-securitized debt

(509)



(374)


Net increase in notes and debt outstanding under revolving credit facilities

3



80


Principal payments under financing arrangements and capital lease obligations

(14)



(51)


Debt issuance costs

(13)



(14)


Proceeds from financed lease obligations

34



263


Issuance of common stock

-



14


Proceeds from exercise of stock options

18



8


Dividends paid by subsidiaries to non-controlling interest

(30)



(25)


Other financing activities

-



4


Net cash provided by financing activities

33



42


Effect of exchange rate changes on cash and cash equivalents

(10)



(5)


Decrease in cash and cash equivalents

(161)



(582)


Cash and cash equivalents at beginning of the period

755



1,087


Cash and cash equivalents at end of the period

$

594



$

505










 

 

Navistar International Corporation and Subsidiaries

Segment Reporting

(Unaudited)


We define segment profit (loss) as net income (loss) from continuing operations attributable to Navistar International Corporation excluding income tax benefit (expense). The following tables present selected financial information for our reporting segments:


(in millions)

North America Truck


North America Parts


Global Operations


Financial

Services(A)


Corporate

and

Eliminations


Total

Three Months Ended April 30, 2014


















External sales and revenues, net

$

1,680



$

611



$

417



$

38



$

-



$

2,746


Intersegment sales and revenues

129



12



6



19



(166)



-


Total sales and revenues, net

$

1,809



$

623



$

423



$

57



$

(166)



$

2,746


Income (loss) from continuing operations attributable to NIC, net of tax

$

(134)



$

126



$

(150)



$

24



$

(164)



$

(298)


Income tax expense

-



-



-



-



(23)



(23)


Segment profit (loss)

$

(134)



$

126



$

(150)



$

24



$

(141)



$

(275)


Depreciation and amortization

$

69



$

4



$

8



$

11



$

7



$

99


Interest expense

-



-



-



17



57



74


Equity in income of non-consolidated affiliates

1



1



1



-



-



3


Capital expenditures(B)

26



1



1



-



1



29






































(in millions)

North America Truck


North America Parts


Global Operations


Financial

Services(A)


Corporate

and

Eliminations


Total

Three Months Ended April 30, 2013


















External sales and revenues, net

$

1,395



$

621



$

471



$

39



$

-



$

2,526


Intersegment sales and revenues

120



14



22



19



(175)



-


Total sales and revenues, net

$

1,515



$

635



$

493



$

58



$

(175)



$

2,526


Income (loss) from continuing operations attributable to NIC, net of tax

$

(303)



$

114



$

32



$

19



$

(215)



$

(353)


Income tax expense

-



-



-



-



(22)



(22)


Segment profit (loss)

$

(303)



$

114



$

32



$

19



$

(193)



$

(331)


Depreciation and amortization

$

114



$

4



$

9



$

10



$

5



$

142


Interest expense

-



-



-



17



73



90


Equity in income (loss) of non-consolidated affiliates

3



2



(1)



-



-



4


Capital expenditures(B)

28



-



4



1



2



35






































(in millions)

North America Truck


North America Parts


Global Operations


Financial

Services(A)


Corporate

and

Eliminations


Total

Six Months Ended April 30, 2014


















External sales and revenues, net

$

2,957



$

1,208



$

712



$

77



$

-



$

4,954


Intersegment sales and revenues

217



22



14



35



(288)



-


Total sales and revenues, net

$

3,174



$

1,230



$

726



$

112



$

(288)



$

4,954


Income (loss) from continuing operations attributable to NIC, net of tax

$

(341)



$

230



$

(183)



$

47



$

(300)



$

(547)


Income tax expense

-



-



-



-



(11)



(11)


Segment profit (loss)

$

(341)



$

230



$

(183)



$

47



$

(289)



$

(536)


Depreciation and amortization

$

127



$

8



$

16



$

21



$

13



$

185


Interest expense

-



-



-



34



122



156


Equity in income (loss) of non-consolidated affiliates

2



2



(1)



-



-



3


Capital expenditures(B)

38



5



4



1



2



50






































(in millions)

North America Truck


North America Parts


Global Operations


Financial

Services(A)


Corporate

and

Eliminations


Total

Six Months Ended April 30, 2013


















External sales and revenues, net

$

2,933



$

1,290



$

862



$

78



$

-



$

5,163


Intersegment sales and revenues

247



32



37



39



(355)



-


Total sales and revenues, net

$

3,180



$

1,322



$

899



$

117



$

(355)



$

5,163


Income (loss) from continuing operations attributable to NIC, net of tax

$

(404)



$

231



$

22



$

41



$

(357)



$

(467)


Income tax expense

-



-



-



-



(37)



(37)


Segment profit (loss)

$

(404)



$

231



$

22



$

41



$

(320)



$

(430)


Depreciation and amortization

$

185



$

8



$

18



$

19



$

12



$

242


Interest expense

-



-



-



35



129



164


Equity in income (loss) of non-consolidated affiliates

5



3



(5)



-



-



3


Capital expenditures(B)

93



1



7



1



5



107






































(in millions)

North America Truck


North America Parts


Global Operations


Financial

Services


Corporate

and

Eliminations


Total

Segment assets, as of:


















April 30, 2014

$

2,306



$

671



$

878



$

2,494



$

1,378



$

7,727


October 31, 2013

2,250



716



1,162



2,355



1,832



8,315




























_________________________

(A)

Total sales and revenues in the Financial Services segment include interest revenues of $42 million and $82 million for the three and six months ended April 30, 2014, respectively and $46 million and $93 million for the three and six months ended April 30, 2013, respectively.

(B)

Exclusive of purchases of equipment leased to others.



 

SEC Regulation G Non-GAAP Reconciliation
The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP and are reconciled to the most appropriate GAAP number below.

Earnings (loss) Before Interest, Income Taxes, Depreciation, and Amortization ("EBITDA"):
We define EBITDA as our consolidated net income (loss) from continuing operations attributable to Navistar International Corporation, net of tax, plus manufacturing interest expense, income taxes, and depreciation and amortization. We believe EBITDA provides meaningful information as to the performance of our business and therefore we use it to supplement our GAAP reporting. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results.

Adjusted EBITDA:
We believe that adjusted EBITDA, which excludes certain identified items that we do not consider to be part of our ongoing business, improves the comparability of year to year results, and is representative of our underlying performance. Management uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and  to provide an additional measure of performance.

Manufacturing Cash, Cash Equivalents, and Marketable Securities:
Manufacturing cash, cash equivalents, and marketable securities represents the Company's consolidated cash, cash equivalents, and marketable securities excluding cash, cash equivalents, and marketable securities of our financial services operations. We include marketable securities with our cash and cash equivalents when assessing our liquidity position as our investments are highly liquid in nature. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of our ability to meet our operating requirements, capital expenditures, equity investments, and financial obligations.

Structural costs consists of Selling, general and administrative expenses and Engineering and product development costs.

EBITDA reconciliation:

(in millions)

Three Months Ended

April 30, 2014

Loss from continuing operations attributable to NIC, net of tax

(298)

Plus:


Depreciation and amortization expense

99

Manufacturing interest expense(A)

57

Less:


Income tax benefit (expense)

(23)

EBITDA

$

(119)




 

______________________

(A)

Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the manufacturing and corporate operations, adjusted to eliminate intercompany interest expense with our Financial Services segment. The following table reconciles Manufacturing interest expense to the consolidated interest expense:



  


Three Months

Ended April 30,

(in millions)

2014

Interest expense

$

74

Less:  Financial services interest expense

17

Manufacturing interest expense

$

57

Adjusted EBITDA reconciliation:

(in millions)

Three Months

Ended April 30, 2014

EBITDA(reconciled above)

$

(119)

Less significant items of:


Asset impairments charges(A)

151

Adjustments to pre-existing warranties(B)


42

Restructuring charges(C)

8


201



Adjusted EBITDA

$

82

______________________

(A)  

In the second quarter of 2014, the Global Operations segment recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. Due to the economic downturn in Brazil causing declines in actual and forecasted results, we tested the goodwill of our Brazilian engine reporting unit and trademark for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademark were impaired.

(B)  

Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. The charges impacted the North America Truck segment.

(C) 

In the second quarter of 2014, the Company incurred restructuring charges of $8 million related to cost reduction actions that included a reduction-in-force in the U.S.



The above items did not have a material impact on taxes due to the valuation allowances on our U.S. deferred tax assets, which was established in the fourth quarter of 2012.

 

Manufacturing segment cash and cash equivalents and marketable securities reconciliation:


As of April 30, 2014

(in millions)

Manufacturing Operations


Financial Services Operations


Consolidated Balance Sheet

Assets









Cash and cash equivalents

$

563



$

31



$

594


Marketable securities

497



37



534


Total Cash and cash equivalents and Marketable securities

$

1,060



$

68



$

1,128


 

Logo - http://photos.prnewswire.com/prnh/20120127/MM32830LOGO-a

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
3514 State St. Erie, PA 16508
Newsroom: (814)454-8812
Toll Free: 1(800)454-8812
Business offices: (814)454-5201
WICU FCC Filing
WSEE FCC Filing
Share:
Share Stories
Submit your stories to our site!
Share Photos
Share your photos in our community galleries
Mobile:
Mobile Site
Be sure to stay constantly updated with the power of WICU12 and WSEE at your fingertips
Free Android App
Free iPhone App
Free iPad App
Storm Tracker App
Droid
iPhone
iPad
All content © Copyright 2000 - 2014 WorldNow and WICU. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.
                   WICU/WSEE - 3514 State Street Erie, PA 16508 - (814) 454-5201 - info@wicu12.com