Navistar Falls After Jefferies Predicts Forecast Cut
Navistar International Corp. (NAV), the maker of International brand trucks, fell as much as 5.2 percent after Jefferies Group Inc. said the company may lower its annual profit forecast when it reports second-quarter earnings.
Navistar slid 3.6 percent to $28.18 at 2:46 p.m. New York time after reaching $27.72. Before today, the shares fell 23 percent this year after falling 35 percent in 2011.
The company may lower its annual profit forecast by $1 a share or more because of market share losses, narrowing margins, reduced demand in Brazil and a lack of U.S. Environmental Protection Agency certification for its 13-liter engine at 0.2 gram of nitrogen oxides, Stephen Volkmann, an analyst with Jefferies, said in a research note. Navistar will report second- quarter results in early June.
Navistar, based in Lisle, Illinois, lowered its annual profit forecast on March 8 to $4.25 a share to $5.25, from a Feb. 1 forecast of as much as $5.75 a share. Analysts estimate annual profit of $3.99, the average of 17 estimates.
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