Navistar (NAV) to Outline Strategy, Sees FY12 EPS Below Views
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Navistar International Corporation (NYSE: NAV) announced it will outline the critical elements of its strategy to achieve $20 billion in sales and $1.8 billion in segment profit at an Analyst Day event to be held today at its new product development center in Lisle, Ill. The company also announced it formally submitted its 0.2g NOx in-cylinder engine certification data to the United States Environmental Protection Agency.
Navistar expects North America truck demand to increase 5 to 18 percent in fiscal year ending October 31, 2012, to a range of 275,000 to 310,000. Included in its earning guidance for fiscal 2012 was the improved adjusted manufacturing segment profit of $1.0 to $1.15 billion, a 13 to 30 percent increase over the $882 million achieved in fiscal 2011. The primary driver of our expected improvements is improved results from Navistar's core truck, engine and service parts businesses, partially offset by lower demand for military vehicles.
Navistar said adjusted net income attributable to Navistar International Corporation for fiscal year ending October 31, 2012, is expected to be between $350 million and $400 million, or $5.00 to $5.75 adjusted diluted earnings per share, which is generally consistent with performance in fiscal 2011. The Street sees EPSS of $5.90. However, the company will absorb approximately $90 million in higher post retirement health care costs and expects its effective tax rate to be 25 to 30 percent with cash taxes expected to be below 10 percent.
Navistar expects North America truck demand to increase 5 to 18 percent in fiscal year ending October 31, 2012, to a range of 275,000 to 310,000. Included in its earning guidance for fiscal 2012 was the improved adjusted manufacturing segment profit of $1.0 to $1.15 billion, a 13 to 30 percent increase over the $882 million achieved in fiscal 2011. The primary driver of our expected improvements is improved results from Navistar's core truck, engine and service parts businesses, partially offset by lower demand for military vehicles.
Navistar said adjusted net income attributable to Navistar International Corporation for fiscal year ending October 31, 2012, is expected to be between $350 million and $400 million, or $5.00 to $5.75 adjusted diluted earnings per share, which is generally consistent with performance in fiscal 2011. The Street sees EPSS of $5.90. However, the company will absorb approximately $90 million in higher post retirement health care costs and expects its effective tax rate to be 25 to 30 percent with cash taxes expected to be below 10 percent.
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