Northern, WI 7/6/12 (StreetBeat) -- Navistar International Corp. (NYSE: NAV) said Friday that it is in talks with federal regulators on a plan that will allow it to continue shipping trucks while it makes a transition to a new emission-reducing technology.The news initially sent the commercial truck and engine maker's shares up more than 4 percent in premarket trading, before giving up the gains and then falling into negative territory, along with the overall market, after the release of a disappointing jobs report.
The Lisle, Ill.-based company said its In-Cylinder Technology Plus system will meet 2010 Environmental Protection Agency emissions regulations and help position the company to meet greenhouse gas rules ahead of 2014 and 2017 requirements. The new technology is expected to be available beginning in early 2013.
Navistar has struggled this year amid the uncertainty surrounding whether its Class 8 engine, which is used in the largest commercial trucks, would get EPA approval. Last month, the company reported a net loss of $172 million for the second quarter, pulled down by $108 million in losses at the engine division, and slashed its full-year earnings forecast to a fraction of its previous range.
Navistar said it plans to continue to build and ship EPA-compliant trucks in all vehicle classes using a combination of emissions credits and non-compliance penalties while it transitions to its new emissions reduction technology.
"We are working diligently to create a path forward with the EPA, which we believe will bring clarity to the market and help us execute our business plan and achieve our goals," the company said in an investor presentation filed Friday with the Securities and Exchange Commission.
Navistar added that its cash position remains stable and believes it would have access to additional financing sources if they were needed.
The company said that while the transition will require some additional product development, resulting in additional costs, the new technologies will help reduce the company's costs and expand its margins in the long term.
Navistar shares fell $1.59, or 5.5 percent, to $27.20 in morning trading after the government's June employment report showed slower-than-expected job growth. They had risen as high as $30 per share in premarket trading 80 minutes before the employment data was released.
Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail bflautt@gmail.com or call (662) 392-0740 for pricing and scheduling.
StreetBeat Disclaimer
No comments:
Post a Comment