Navistar International Corp. (NAV) projected earnings per share of $1.75 to $2.25 for fiscal 2010 ended Oct 31, 2009, in a filing with the U.S. Securities and Exchange Commission. This was narrower than the Zacks Consensus Estimate of $3.45 per share for the fiscal.
 
Navistar seems to be bogged down by the economic slump, which has resulted in lower revenues at its military-truck unit due to a decline in freight volumes and the expiration of a contract with its largest customer, Ford, effective December 31, 2009, following a legal settlement.
 
Navistar also expects higher interest expense due to the refinancing of its debts at higher rates and a spike in research and development expenditures for the year. The Illinois-based truck maker is in the process of engineering its 2010 Exhaust Gas Recirculation (EGR) truck engines to conform to 2010 emissions standards from the Environmental Protection Agency (EPA).
 
In North America, the truck industry sales declined from 454,700 vehicles in 2006 to 181,000 vehicles in 2009, the worst performance in 47 years. However, Navistar expects the three-year decline to end this year and predicts North American sales in the range of 195,000 to 215,000 vehicles.
 
For fiscal 2009, Navistar revealed a net income (before special items) of $205 million or $2.86 per share, compared to $528 million or $7.21 per share in the previous fiscal. This was, however, better than the Zacks Consensus Estimate of $2.38 per share. Sales dipped 21% to $11.6 billion.
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