Navistar’s 3Q Profit Jumps on Tax Gain; Company Plans 5% Stock Buyback
Navistar International Corp. said Wednesday its fiscal third-quarter profit jumped on an income tax gain, though its truck unit reported a loss due to restructuring charges.
The company earned $1.4 billion, or $18.24 per share, compared with $117 million, or $1.56, a year ago. Excluding tax gains, adjusted net income was $61 million, or 79 cents a share.
Sales for the quarter ended July 31 rose to $3.5 billion, from $3.2 billion a year ago, the truck and engine maker said.
Navistar also said it plans to “a significant buyback of our stock, which we believe is currently undervalued,” Chairman and CEO Daniel Ustian said in a statement
It will undertake share repurchases of up to $175 million, or about 5%, of its common stock in the upcoming months, the company said.
The truck segment took a $75 million loss, compared with profit of $227 million a year ago, which included $119 million in charges for restructuring its North American manufacturing operations and $11 million in engineering integration charges.
Its engine unit posted a $32 million profit and parts unit had a profit of $70 million.
Navistar said last month it was closing an idle truck plant in Ontario, Canada, and was restructuring its U.S.-based custom chassis and motor coach units. Those charges totaled $137 million.
Adjusted 2011 earnings will be $5 to $6 per share, down from its previously estimated range of $5.50 to $6 per share, the company said.
Full-year revenue will be $13.6 billion to $14.1 billion, slightly below its previous projection of $13.6 to $14.3 billion, Navistar said.
