Navistar closes book on profitable 2010

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WARRENVILLE, Ill. — Navistar posted a fourth quarter profit of US$39 million, down from US$86 million over the same period last year.

Navistar’s 2010 fiscal year resulted in net income of US$223 million, down from US$320 million in 2009. The company noted its 2010 earnings reflect the costs of negotiating a new labour agreement with the UAW.

“The North American truck market has been depressed for three years now and the company has been able to provide good profits while investing in the future growth,” said Daniel C. Ustian, Navistar chairman, president and chief executive officer. “The company is well positioned to take advantage of the growing North American market as well as expanding globally.”

The company said its Q4 results were in line with expectations based on the delivery of more than 17,000 EPA2010-compliant vehicles in the US and Canada. Navistar estimated demand for the year ending Oct. 31, 2011, including Classes 6-8 trucks and school buses, will total 230,000-250,000 units in the US and Canada.

Navistar’s truck sales were up in 2010, with the business segment generating a profit of US$424 million for the year. The company’s engine segment reported a profit of US$51 million for the year, due to a 34% increase in shipments to South America. However, decreased volumes in North America (largely attributable to the expiration of the company’s supply deal with Ford) dragged down Navistar’s engine business profits, which in 2009 totaled US$253 million.

Navistar’s parts business grew 15% but profit decreased due to a decline in military sales, the company reported.

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