Downfall in business along with escalating cost would create pressure for the company. S&P has a negative outlook on the rating due to the expectation of operating loss for the full year. The company will also register a decline in sales of military vehicles and parts together with the deterioration in demand for medium-duty truck. The company witnessed a loss of $137 million or $1.99 per share (excluding special items) in the second quarter of fiscal 2012. The results also missed the Zacks Consensus Estimate. Revenues dipped 2.9% year over year to $3.3 billion, missing the Zacks Consensus Estimate. The decline was attributable to a decrease in sales in Engine and Part segments, which was partially offset by higher sales in the Truck segment. Warrenville, Illinois-based Navistar manufactures and sells commercial trucks, mid-range diesel engines, buses, military vehicles and chassis for motor homes and step-vans.