Navistar International Corp. (NAV) reported a fourth-quarter adjusted profit of $128 million, or $1.77 a share on Monday giving a strong boost to the share price this morning. Analysts were expecting a profit of $1.53 a share on sales of $3.08 billion.
Unadjusted profits for the fourth-quarter were $86 million, or $1.19 a share, compared to a loss of $343 million, or $4.81 a share for the same period one year ago.
According to the commercial truck and engine manufacturing company, fourth quarter sales were higher than last year. Customers were purchasing more trucks in anticipation of higher prices next year resulting from stricter pollution standards on diesel exhaust.
Industry-wide retail sales of medium and heavy-duty trucks are expected to remain at low levels for next year, ranging from 175,000 to 215,000 trucks according to Navistar, reflecting the most unfavorable climate for truck purchases since the 1960s. Truck sales aren’t expected to increase significantly until 2011 due to the recent global financial crisis.
Navistar Inc. also announced yesterday that it has signed an agreement to acquire an interest in Danish technology company Amminex.
The Amminex technology is a customer-friendly metal ammine-based NOx reductant delivery system, and is a tool which Navistar engineers will use to explore exhaust gas NOx reduction for specific applications.
Daniel C. Ustian, Navistar chairman, president and chief executive officer stated. “By leveraging our assets and those of Amminex, this agreement supports Navistar’s three-pillar strategy of product leadership, competitive cost structure and profitable growth. Amminex offers another tool for Navistar to explore cost-effective, customer-friendly technologies that fit our MaxxForce Advanced EGR platform, meeting emissions requirements while removing the burden liquid urea places on the industry.“
Navistar shares were trading around $38 a share mid-morning today, a 7 percent gain from the previous day’s closing price.
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