Equipment Type

Navistar 4Q Profit Drops 55%

Navistar International Corp.'s fiscal fourth-quarter earnings fell 55% as the commercial truck and engine maker reported that its engine business swung to a loss.

December 22, 2010

The profit decline masked ongoing growth at its truck business and results beat analysts' expectations. Navistar's performance has improved in recent quarters thanks to prior cost cutting and as demand for medium and heavy trucks has been recovering slowly from a sales slump that began in 2007.

In the latest period, profit at Navistar's truck segment soared to $86 million from $5 million a year earlier. But the much-smaller engine business swung to the red. Its decision to offer its own engines, which don't use the same pollution-reduction technology as the rest of the industry, had led to concerns among some investors and analysts who worry it may lead to a long-lasting reduction in Navistar's market share.

 

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--Wall Street Journal

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