The Securities and Exchange Commission has notified truck and engine maker Navistar International that enforcement action is coming against the company. The financially embattled truck and engine maker said on its earnings call this morning it has received a Wells notice from the U.S. Securities and Exchange Commission (SEC).
The company also announced Wednesday, Sep. 2, it posted a $28 million loss in the third quarter of the 2015 fiscal year — a downslide from its $2 million loss reported in the same quarter last year. It was the 12th straight quarter the company has reported a loss. Navistar’s truck segment recorded a loss of $36 million, compared with a year-ago third quarter loss of $3 million.
“We feel good about our position entering the 2016 buying season, especially with larger fleets,” Clarke says. “Jeff Sass, our new head of sales, has brought an even greater sense of urgency and focused action in the first three months he has been on board. As a result, we’re entering the buying season in conversations with all top-100 fleets and we feel encouraged by the response we’re getting.”
On the earnings call, Navistar CEO Troy Clarke offered no detail on the notification of the looming SEC action or Navistar’s response, but acknowledged it had been received. The SEC filed a lawsuit against Navistar this year to get documents related to allegations of artificially inflating its stock price and misleading shareholders about its financial standing.
Navistar has the option to formally respond to the Wells notice with a “submission,” which could detail why the company believes the SEC should drop its case, among other things. The SEC has 180 days after issuing a Wells notice to decision.