Navistar International Corp has said that it has recorded a net loss of $247 million during the third quarter of the year, which is much larger than analyst expectations.

The truck-and-engine maker, which is based in Lisle, said that it will cut around 500 jobs till October to save costs and improve profitability. The company said that its plans to return the company to profitability has been slower than expected because of a large fall in market share. It said that sales were affected due to a transition to a new engine strategy and weaker market conditions.

Troy Clarke, Navistar's president and chief executive, said, "We still face a few significant challenges, but we have laid the groundwork to solve them, and obviously, we want to accelerate our rate of progress. We're one year in, and we've made significant progress."

The company had said that it expects to return to profitability within this year but it now expects to become profitable in 2014. The company's market share for heavy-duty trucks was recorded at 14 per cent, which is about the same as the first quarter but much lower than 21 per cent recorded during 2011.