Navistar Hits Profit in 1Q

Truck and engine manufacturer Navistar posted a profit of $234 million in its fiscal first quarter ending Jan. 31 compared to a $65 million loss in the same period in 2008, boosted by sales of large Class 8 trucks.

Truck segment revenue increased 9.5 percent from $1.88 billion to $2.06 billion for the quarter year over year. Profits in the segment increased from $9 million in the 2008 quarter to $114 million this year. Overall sales at the company were up slightly from $2.86 billion to $2.9 billion.

“We delivered a profitable first quarter due in part to the strength of our diversification strategy, increased market share in the heavy truck segment and our expanding military business,” said Navistar Chairman, President and CEO Daniel C. Ustian.

Due largely to the weakening freight economy, Navistar projects industry retail sales volume for trucks in the Class 6 to Class 8 size range and school buses in the United States and Canada for the fiscal year ending October 31, 2009, to total between 210,000 and 225,000 units, down from its previous forecast of 244,000 to 256,000 units.