www.navistar.com
Navistar International is a holding company whose subsidiaries and affiliates produce commercial and military trucks, diesel engines, school and commercial buses, recreational vehicles, and chassis for motor homes and step vans.
Navistar beats Q3 profit estimates, but revenues fall short
Vehicle and parts company Navistar International (NYSE: NAV) has reported third quarter profits of $137 million, or $1.83 diluted earnings per share, compared to a net loss of $12 million, or ($0.16) diluted loss per share, a year earlier - beating profit estimates of $1.28 per share.
Revenues for the third quarter also increased by 28% from the previous year, totalling $3.2 billion, but fell short of the expected $3.68 billion.
The truck segment reversed losses from a year ago to post a third quarter profit of $227 million, on account of increased military sales and cost improvements.
The engine segment, however, reversed the positive trend, and recorded a net loss of $1 million for the third quarter, compared to a profit of $45 million a year ago.
The engine division's losses were attributed to expenses associated with the launch of the company’s 2010-compliant engines. The segment’s performance was boosted by a 29% year-over-year increase in its engine shipments to South America.
Profits from the parts segment also declined to $52 million for the period compared to $93 million a year ago.
Because military truck orders were deferred to 2011, the company lowered its revenue guidance to $12 billion for fiscal 2010, compared to the previous guidance of $13.2 billion to $13.7 billion.
Nevertheless, the firm has re-affirmed its earnings guidance of $2.75 to $3.25 per diluted share for 2010, saying it has found other measures to remain within its previously anticipated range.
Navistar International is a holding company whose subsidiaries and affiliates produce military trucks, diesel engines, school and commercial buses, recreational vehicles, as well as truck and diesel engine service parts. The company also offers financial services through its affiliates.
