Navistar International Corp. announced Tuesday, Jan. 25, that it expects substantial gains in fiscal 2011 earnings as the result of the successful implementation of its three-pillar growth strategy and improving economic conditions. The company said it believes that net income attributable to Navistar for fiscal year ending Oct. 31, 2011, is expected to be between $388 million and $466 million, excluding transition costs associated with the integration of the truck and engine engineering operation and the potential positive impact of income tax valuation adjustments.
“As evidenced by our guidance, our strategy continues to drive value for our shareholders,” says Daniel C. Ustian, Navistar chairman, president and chief executive officer. “Coming out of the recession, we have developed today’s earning guidance around a stronger economy, further expansion of our aftermarket service parts business and continued benefit from great products, a competitive cost structure and profitable growth.”
The Warrenville, Ill.-based company raised its guidance for industry volume and now anticipates that total truck industry retail sales volume for Class 6-8 trucks and school buses in the United States and Canada for its fiscal year will be in the range of 240,000 to 260,000 units. Truck industry volume in fiscal 2010 was 191,300 units.
Navistar says growth strategy transition costs associated with the integration of the truck and engine engineering operation into a single facility could be between $75 million and $80 million. Including the integration costs, net income attributable to Navistar for its fiscal year is expected to be between $311 million and $388 million. Navistar earned $223 million in fiscal 2010.
