Navistar quarterly revenue falls, unit gets DoD subpoena

September 8, 2016 7:24 AM EDT

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(Reuters) - Truck and engine maker Navistar International Corp (NYSE: NAV) reported a fall in revenue for the sixth straight quarter due to lower truck sales and said one of its units had received a subpoena from the United States defense department.

Shares of the company were down 4.6 percent in premarket trading on Thursday.

Volkswagen AG earlier this week agreed to an engine technology and purchasing alliance with Navistar and bought a 16.6 percent stake in the U.S. firm.

The net loss attributable to Navistar widened to $34 million, or 42 cents per share, in the third quarter ended July 31, from $28 million, or 34 cents per share, a year earlier.

Revenue fell 17.7 percent to $2.09 billion.

Analysts on average had expected the company to earn 14 cents per share on revenue of $2.18 billion, according to Thomson Reuters I/B/E/S.

Navistar Defense LLC, a unit of the company, said it received a subpoena from the United States Department of Defense Inspector General asking for documents related to the sale of some independent suspension systems to the government.

The Lisle, Illinois-based company has submitted the documents and intends to comply with the subpoena, Navistar said in a filing on Thursday. (

The subpoena is related to the independent suspension systems sold for military vehicles between Jan. 1, 2009 and Dec. 31, 2010.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)

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