UPDATE 3-Navistar narrows losses, hits milestone, raises view

Wed Sep 3, 2014 9:55am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds details on lawsuits, updates shares)

By James B. Kelleher

Sept 3 (Reuters) - Navistar International Corp on Wednesday reported a smaller-than-expected quarterly loss as commercial vehicle demand rebounded in North America and warranty costs related to its roll-out of a failed emissions-reduction system continued to fall.

The suburban Chicago-based maker of trucks, buses and military vehicles also reported its first pretax quarterly profit from continuing operations since 2011 and raised its forecast for industry sales of the biggest commercial trucks in the United States and Canada for fiscal 2014.

The company believes customers in those two countries, critical for Navistar, will buy between 235,000 to 240,000 of the big rigs, up from a previous forecast of 225,000 to 235,000 trucks.

Navistar shares, up nearly 15 percent over the past year, rose another 1.5 percent to $39.00 in early trading on the New York Stock Exchange.

The company said its loss narrowed to $2 million, or 2 cents a share, in the third quarter ended July 31, from $247 million, or $3.06 a share, during the comparable quarter last year.

Sales were flat at $2.8 billion.

Analysts, on average, expected Navistar to post a loss of 66 cents a share, according to Reuters estimates.   Continued...