Navistar CFO Andrew Cederoth resigns


Navistar International Corp said Chief Financial Officer Andrew Cederoth would leave the company by the end of June, the latest management change at the truck and engine maker looking to recover from a disastrous engine redesign.

Navistar said Treasurer James Moran will take over until the company appoints a permanent replacement for Cederoth.

Continue Reading Below

Cederoth was the CFO of Navistar since September 2009 and the company said his resignation was part of a planned transition to a new CFO.

"It is likely the new leaders/board are looking for a clean slate from which to drive change and improvement in the business model," Robert W. Baird & Co analyst David Leiker said.

"We have no reason to believe this departure is related to the weak stock performance in recent weeks."

Navistar ousted its long-term Chief Executive Daniel Ustian in August after a new diesel engine technology failed to win regulatory approval, forcing the company to temporarily source engines from rival Cummins Inc .

The company named former Chief Operating Officer Troy Clarke CEO in March, after a brief stint by turnaround specialist Lewis Campbell, a former Textron Inc chief.

Navistar's turnaround plan received another jolt after it reported a bigger second-quarter loss earlier this month as it continued to book higher warranty costs and lost sales while moving to a new engine technology.

This was the company's sixth quarterly loss in a row.

Lisle, Illinois-based Navistar's shares fell 2.4 percent in extended trading after closing at $26.62 on the New York Stock Exchange on Monday. The stock has fallen about 22 percent since the latest results.

(Reporting by Mridhula Raghavan and Anil D'Silva in Bangalore; Editing by Joyjeet Das)