Navistar’s 2008 Profit Could Top $400 Million

Navistar International Corp. said its 2008 net income will be $312 million to $418 million, or $4.26 to $5.72 per share.

The company maintained its guidance for the fiscal year ending Oct. 31 that its manufacturing segment profit for would be $950 million to $1 billion, and said its revenue would top $15 billion.

Navistar reduced its industrywide forecast of U.S. and Canadian retail Class 6-8 trucks and school buses, putting it at 235,000 to 245,000 units, down from a previous forecast of 258,000 units. Last year, industry volume totaled 319,000 units.

Navistar said its diesel engine sales, including shipments to other original equipment manufacturers, will decline to between 340,000 and 350,000 engines this year, down from 405,000 last year and 520,000 engines in fiscal 2006.

“The prolonged softness in the overall economy, particularly in the construction and housing segments caused many commercial truck owners to defer purchase or lease of new vehicles,” Chairman and Chief Executive Officer Daniel Ustian said in a statement.

“High diesel prices have also impacted industry sales. While there has been a near collapse in the pickup truck market and continued softness in the overall commercial truck market, our company has been better able to withstand the softness because of our expansion into markets not served by the company as recently as 2004,” he said, referring to the company’s increased sales to the military.