Bloomberg News

Navistar Falls After Jefferies Predicts Forecast Cut

May 30, 2012

Navistar International Corp. (NAV:US), the maker of International brand trucks, fell 3.3 percent after Jefferies Group Inc. said the company may lower its annual profit forecast when it reports second-quarter earnings.

Navistar slid to $28.26 at the close in New York. The shares have declined 25 percent this year after falling 35 percent in 2011.

The company may lower its annual profit forecast by $1 a share or more because of market share losses, narrowing margins, reduced demand in Brazil and a lack of U.S. Environmental Protection Agency certification for its 13-liter engine at 0.2 gram of nitrogen oxides, Stephen Volkmann, an analyst with Jefferies, said in a research note. Navistar will report second-quarter results in early June.

Navistar, based in Lisle, Illinois, lowered its annual profit forecast on March 8 to $4.25 a share to $5.25, from a Feb. 1 forecast of as much as $5.75 a share. Analysts estimate annual profit of $3.99, the average of 17 estimates.

To contact the reporter on this story: Mark Clothier in Southfield, Michigan at mclothier@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net


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Companies Mentioned

  • NAV
    (Navistar International Corp)
    • $38.08 USD
    • 0.47
    • 1.23%
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