Navistar International Corp. Wednesday reported a loss for its fiscal first quarter but said the period was profitable excluding integration costs.
Adjusted net income for the quarter ended Jan. 31 was $12 million, or 16 cents per share, excluding costs to integrate its truck and engine engineering operations, Navistar said in a statement.
Including integration costs, the company lost $6 million, or 8 cents per share, compared with a profit of $19 million, or 26 cents, a year ago. Its truck segment’s profit was $32 million, down from $35 million a year ago.
Navistar said the adjusted profit was aided by revenue improvements across its traditional commercial classes but offset by $18 million in engineering integration costs related to restructuring at its Fort Wayne, Ind., engineering facility.
The company also cited $4 million in postretirement and contract termination benefits costs at its Springfield, Ohio, truck facility, which impacted its truck segment.
Commercial units sold by Navistar’s traditional U.S. and Canadian Class 6-8 truck and school bus businesses fell 11% in the quarter from a year ago, while military units declined by more than 300 units.
Its engine segment lost $8 million as it completed its launch of a full lineup of 2010 compliant engines which required low-volume costs that will decline in the second half of the year, Navistar said.
Navistar boosted its earnings guidance in January for its fiscal year that ends Oct. 31, saying it would earn 388 million to $465 million, or $5 to $6 per share, excluding ongoing integration costs. It reaffirmed that forecast Wednesday.
Chairman and CEO Daniel Ustian said Navistar “believes we can deliver results toward the higher side of our guidance. We have significantly raised truck production schedules by up 40% on various models to reflect increasing order activity.”
“We see positive signs across all of our businesses [and] believe industry volumes should be at the higher end of our range, military revenue will approach $2 billion, global volumes are expanding and so far we have contained challenges in commodity costs,” he said in a statement.
