Palm Beach, FL 3/8/12 (StreetBeat) – Navistar (NYSE: NAV) reported widening first-quarter losses Thursday, citing higher health care costs, a new foundry operation and a brake supplier issue.The heavy trucks and engines maker cut its full-year adjusted earnings outlook to a range below Wall Street's expectations. Its stock slid 5 percent in premarket trading.
Navistar lost $153 million, or $2.19 per share, for the three months ended Jan. 31. That compares with a loss of $6 million, or 8 cents per share, a year earlier.
Removing the charge related to engineering integration costs, Navistar lost $2.08 per share compared with a profit of 16 cents per share in the prior-year period.
Analysts polled by FactSet predicted a loss of 20 cents per share.
The company said that the first-quarter is typically the softest due to seasonal weakness. Other problems included the temporary shutdown of a key customers that manufactures equipment because of flooding in Thailand.
Revenue climbed 11 percent to $3.05 billion on higher truck volumes in traditional, and topped most Wall Street estimates.
Navistar now foresees full-year adjusted earnings of $4.25 to $5.25 per share. Its prior guidance was for adjusted earnings in a range of $5 to $5.75 per share. The company said that the outlook includes about $90 million in higher post-retirement health care costs compared to last year.
Analysts predict 2012 earnings of $5.50 per share.
Shares of Navistar International Corp. declined $2.03 to $38 before the market opened.
Navistar did say that it expects North American truck demand to rise between 5 percent and 18 percent in fiscal 2012.
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