Navistar International Corp. (NAV:US), the maker of International brand trucks, fell as much as 5.2 percent after Jefferies Group Inc. said the company may lower its annual profit forecast when it reports second-quarter earnings.
Navistar slid 3.6 percent to $28.18 at 2:46 p.m. New York time after reaching $27.72. Before today, the shares fell 23 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.
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