Navistar International Corporation (NYSE:NAV) Q2 2020 Earnings Conference Call - Final Transcript

Jun 04, 2020 • 09:00 am ET


Navistar International Corporation (NYSE:NAV) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, welcome to the Navistar International Corporation's Second Quarter 2020 Earnings Conference Call.

[Operator Instructions]

At this time, I'd like to turn the call over to Marty Ketelaar, Vice President of Investor Relations and Communications, to begin the call. Please go ahead.

Marty Ketelaar

Good morning everyone and thank you for joining us for Navistar's second quarter 2020 earnings conference call. Today, we will discuss the financial performance of Navistar International Corporation for the fiscal period ended April 30, 2020.

With me today are Troy Clarke, our Chairman, President and Chief Executive Officer; Walter Borst, our Executive Vice President and Chief Financial Officer; and Persio Lisboa, Executive Vice President and Chief Operating Officer. After concluding our prepared remarks, we'll take questions from participants.

Before we begin, I'd like to cover a few items. A copy of this morning's press release and the presentation slides has been posted to the Investor Relations page of our website for reference. The non-GAAP financial measures discussed in this call are reconciled to the U.S. GAAP equivalent and can be found in the press release that we issued this morning as well as in the appendix of the presentation slide deck. Today's earnings press release, investor presentation and our prepared remarks include forward-looking statements about our expectations for future industry and financial performance, and the company expressly disclaims any obligation to update these statements. Actual results could differ materially from those suggested by our comments made here. For additional information concerning factors that could cause actual results to differ materially from those included in today's presentation, please refer to our most recent SEC filings. We would also refer you to our safe harbor statement and other cautionary notes disclaimer presented in today's material for more information on this subject.

With that, I'll turn the call over to Troy Clarke for opening comments. Troy?

Troy A. Clarke

Okay. Thanks, Marty. Good morning and thanks for joining us. We have a lot to cover today, so we will try to keep our comments brief to allow adequate time for your questions.

It's been a unique and a very busy quarter. Like many businesses, we've worked hard to keep our team safe, understand the changes in the trucking industry and adapt as appropriate. Unfortunately, the wind down of the economy due to the COVID pandemic played out during our Q2 with the quarter ending in the middle of the stay-at-home phase of the crisis. We look forward to Q3 with more sections of the economy moving into the reopening phase. The next few months will provide insight into the nature of the recovery phase, which will extend through the remainder of our fiscal year and into the next.

So, let's take this in pieces. I will comment on the subject of orders, cancellations and the backlog, the manufacturing and supply chain, truck and parts sales and the dealer network, cash conservation actions and Navistar 4.0, and finally the TRATON Alliance.

First, orders. Class 8 industry order intake in the U.S. and Canada