Bloomberg News

Navistar Soars After Icahn Reports Increased Stake

June 08, 2012

Navistar International Corp. (NAV:US), the maker of International brand trucks, advanced the most in more than three years after investor Carl Icahn disclosed he boosted his stake in the company.

Navistar rose 18 percent to $28.36 at the close in New York, the most since Jan. 5, 2009.

Icahn lifted his ownership to 11.9 percent, according to a regulatory filing dated yesterday. He had owned 10.6 percent. Icahn bought an additional 883,200 shares at an average price of $24.44 each, according to the filing.

Navistar slid 14 percent yesterday after the Lisle, Illinois-based truckmaker reported a second-quarter loss, excluding some costs, of $137 million, or $1.99 a share. The average estimate of analysts surveyed by Bloomberg was for a profit of 67 cents a share. The company also lowered its full- year profit forecast to a range of break-even to $2 a share.

The company is struggling to meet 2010 federal emission standards for one of its truck engines. Navistar in February forecast 2012 profit of as much as $5.75 a share. The company reduced the figure to as much as $5.25 a share in March.

The second-quarter net loss was $172 million, or $2.50 a share, compared with a profit of $74 million, or 93 cents, a year earlier.

To contact the reporter on this story: Bill Koenig in Detroit at wkoenig@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)
    • $37.83 USD
    • 0.04
    • 0.11%
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