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 firstname.lastname@example.org
To contact the editor responsible for this story: Jamie Butters at email@example.com