Navistar International Corp. projected adjusted earnings for the current fiscal year that are below analysts’ estimates, despite expectations for improved truck demand in North America.
The company also announced that it has formally submitted needed 0.20-gram certification data to the U.S. Environmental Protection Agency (EPA). U.S. regulators had threatened to fine the company up to $2,000 for every heavy-duty truck engine it sells in the U.S. that doesn’t comply with the latest pollution standards for diesel-engine exhaust once it runs out of pollution credits and before it gains the needed certification.
For the period ending Oct. 31, Navistar expects per-share earnings of $5 to $5.75, while analysts polled by Thomson Reuters recently expected $5.90. In December, the company reported that its fiscal fourth-quarter earnings surged as rising sales of commercial trucks motored past anxiety about weakening economic conditions.
Navistar expects North America truck demand to increase 5% to 18% in the current fiscal year, and adjusted manufacturing segment profit will grow 13% to 30% over the prior-year period. The company also expects to absorb an added $90 million in post-retirement health-care costs.
Navistar is parent to Monaco RV LLC and Workhorse Custom Chassis Corp.