Navistar Swings To 1Q Loss On Costs

Vehicle and engine maker said Wednesday it posted a loss in the fiscal first quarter due to costs related to the integration of two units.

WARRENVILLE, Ill. (AP) -- Vehicle and engine maker Navistar International Corp. said Wednesday it posted a loss in the fiscal first quarter due to costs related to the integration of two units.

The Warrenville, Ill. company, which makes military trucks, school and commercial vehicles, lost $6 million, or 8 cents per share, compared with a year-ago profit of $19 million, or 26 cents per share. Excluding costs related to the integration of its truck and engineering operations into a single facility, adjusted earnings in the most recent quarter was $12 million, or 16 cents per share.

Revenue fell to $2.74 billion from $2.81 billion in the same quarter a year earlier.

Analysts polled by FactSet, who exclude one-time items from their estimates, expected a profit of 24 cents per share on revenue of $2.89 billion.

The company's truck unit profit fell to $32 million from $35 million a year earlier, as better prices were countered by higher costs. The engine segment lost $8 million.

However, Navistar raised its truck production schedule by 40 percent to accommodate higher orders, and said it sees "positive signs across all of our business."

For the full year, the company maintained its earnings prediction, giving a "bias toward the higher end." It expects adjusted earnings of between $5 and $6 per share on revenue of $388 million to $465 million. Navistar raised its truck production scheduled by 40 percent to accommodate higher orders.

In premarket trading Wednesday, Navistar shares fell $1.36, or 2.2 percent, to $59.50.
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