Navistar First-Quarter Profits Soar

CHICAGO (AP) — Navistar International Corp. reported Thursday its first-quarter profits soared 61 percent as strong world demand for its trucks and engines boosted the bottom line.

For the three months ended Jan. 31, the Chicago-based company reported net income of $61 million, or 91 cents a share, up from $38 million, or 42 cents a share, the comparable period a year earlier.

Wall Street expected the company to earn 83 cents a share, according to a survey of analysts by First Call Corp. Navistar shares rose 1/2 to $34.12 1/2 in early trading on the New York Stock Exchange.

Sales rose 11 percent to $1.9 billion from $1.7 billion.

Navistar, the world's fourth-largest truckmaker, in the past few years has aggressively reorganized its truck and engine-making businesses and instituted cost-cutting measures to compete effectively. It also has been working on next generation vehicles to take advantage of continued-strong demand for medium trucks, heavy trucks and school buses.

The company experienced a slight increase in total worldwide shipments of medium and heavy trucks and school buses, translating to an estimated 25.1 percent market share, it said Thursday.

The company said it might have gained more share but could not keep up with the demand for heavy trucks. It is expanding production lines in Mexico and Springfield, Ohio, to meet the need,

avistar said in a statement.