Navistar Posts 12th Consecutive Loss
CBJ – Times aren’t getting any easier for truck and engine maker Navistar International, which has reported its 12th consecutive quarterly loss and said it could face regulatory enforcement action for its disclosure practices, sending its shares downwards by 7%.
The company blames the most recent results on a costly restructuring plan and product warranty costs, along with lower than expected sales in countries such as Brazil and Mexico.
Navistar said it received Wells notices from the U.S. Securities and Exchange Commission that recommended enforcement action against the company and former Chief Executive Officer Daniel Ustian for allegedly violating regulations of disclosures and financial statements.
A Wells notice usually gives the recipient one last chance to persuade regulators not to file a lawsuit.
SEC staff may recommend the agency pursue action involving Navistar’s Environmental Protection Agency certification and disclosures about Ustian’s exit in August 2012.