Truck maker Navistar International Corp. (NAV), Monday reported a swing to profit for the fourth quarter, boosted by higher commercial truck volume and continued military sales, as well as lower expenses. Following the news, the company's shares gained more than 3% in after-hours trading.
The Warrenville, Illinois-based company posted net income of $86 million or $1.19 per share for the fourth quarter, compared to a loss of $343 million or $4.81 per share in the prior year quarter.
Result for the quarter included an asset impairment charge of $31 million, related to the idling of the Chatham, Ontario, and Conway, Ark., manufacturing facilities and a charge of $11 million related to refinancing of its capital structure.
The previous year quarter included asset impairment and related charges of $385 million, pre-tax, or $5.37 per share, related to the strategic changes in the company's Ford diesel engine business.
Excluding items, non-GAAP earnings grew to $144 million or $1.99 per share from $41 million or $0.56 per share in the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $1.52 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Fourth quarter sales and revenues decreased 15% to $3.3 billion from $3.9 billion in the same quarter last year. Eleven analysts had a consensus revenue estimate of $3.09 billion for the fourth quarter.
Manufacturing segment profit was $232 million for the fourth quarter, compared with a loss of $168 million in the year-ago quarter.
Sales and revenues for the Truck segment dropped 29% to $7.3 billion, Engine segment sales and revenues fell 18% to $2.7 billion, and Financial services fetched $348 million, down 14% from a year earlier. However, sales from Parts segment increased 22% year-over-year to $2.2 billion.
Total costs and expenses for the fourth quarter eased to $3.2 billion from $4.2 billion in the prior year quarter.
Navistar said it is prepared for a successful launch of its advanced EGR (exhaust gas recirculation) MaxxForce engines in the months ahead.
Last month, the company acquired certain assets and the membership interests of Continental Diesel Systems US LLC to manufacture key fuel injection components for its MaxxForce diesel engines.
The company said it would establish a dedicated research and development facility to support Navistar's diesel power system components. The company is renamed Pure Power Technologies LLC. Based in Columbia, South Carolina, Pure Power Technologies would operate a research and development center there, as well as a manufacturing plant in nearby Blythewood, South Carolina.
Navistar said it continues to advance strategic joint venture and acquisitions that align with its strategic goals, including NC2, the company's global commercial truck joint venture with Caterpillar Inc., the all-electric commercial truck venture with Modec Limited of the United Kingdom.
In December, Navistar also completed its acquisition of the cement mixer manufacturing business of Continental Mfg. Co. Inc., and invested in Danish technology company Amminex, which will offer it another tool to explore cost-effective, customer-friendly technologies that fit the company's advanced EGR platform.
For fiscal year 2009, Navistar reported net income of $320 million or $4.46 per share, compared to $134 million or $1.82 per share in the previous year. Results was benefited from a settlement with Ford Motor that totaled $160 million, pre-tax, or $2.19 per share.
Excluding the Ford settlement and fourth-quarter charges and costs, net income fell to $205 million or $2.86 per share from $528 million or $7.21 per share in the prior year.
Annual net sales and revenues declined to $11.6 billion from $14.7 billion in the year-ago.
Analysts estimated earnings of $2.34 per share on revenue of $11.31 billion for the year 2009.
Looking ahead to fiscal 2010, Navistar anticipates total truck industry retail sales volume for Class 6-8 trucks and school buses in the United States and Canada to be in the range of 175,000 to 215,000 units.
Navistar closed Monday's regular trading session at $35.51, up 33 cents on a volume of 1.04 million shares. In after-hours, the share further gained $1.17 or 3.29%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.