Navistar Reports Improved 2Q Earnings, Raises ’05 Guidance

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avistar International Corp. Thursday reported earnings for its second quarter ended April 30 surpassed its previous guidance, and the company boosted its earnings outlook for the fiscal year 2005.

The company earned $53 million or 70 cents a share for the quarter, compared with $52 million or 68 cents a year earlier. That exceeded its previous guidance of 65 to 70 cents a share.

Sales rose to $2.9 billion from $2.3 billion a year earlier.

Navistar Chairman and Chief Executive Office Daniel Ustian cited more stable steel prices and easing supplier constraints as factors in the improved results and said the company was "anticipating accelerated earnings gains in the second half of the year, particularly in the fourth quarter."

He said earnings per share for fiscal year 2005 would be in the range of $4.80 to $5.10 a share, an increase from previous guidance of $4.60 to $5 per share.

Navistar, the parent company of International Truck and Engine Corp., had several times since late last year delayed its financial filings because of audits of its previous earnings.

In late April the company adjusted downward its first-quarter earhings to $18 million or 24 cents a share, from a previously reported $20 million or 27 cents.

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