12/22/2010 2:00:00 PM
Navistar International Corp. said Wednesday its fourth-quarter profit fell 55% from a year ago, on higher costs of a new labor agreement.
Navistar earned $39 million, or 54 cents per share, down from $86 million, or $1.19, a year ago.
Revenue for the quarter ended Oct. 31 rose 2% to $3.37 billion, boosted by higher truck segment sales. Net revenue for the truck segment rose to $86 million, from $5 million a year ago.
Navistar called its recently negotiated four-year contract with the United Auto Workers union a â€œsolid investment in the future.â€�
The quarterâ€™s results included $10 million, or 14 cents per share, in costs from separation and layoff costs related to the UAW pact.
Full earnings fell 30% to $223 million, or $3.05 per share, from $320 million, or $4.46, a year ago. Revenue rose to $12.15 billion, from $11.57 billion.
The truck segment reported a full fiscal-year profit of $424 million, up from a 2009 profit of $147 million. Commercial units sold by the companyâ€™s U.S. and Canada Class 6-8 truck and school bus businesses rose 11% in 2010.
Navistar said the quarterâ€™s results were in line with its projection that it would deliver more than 17,000 2010-emission compliant vehicles in the United States and Canada.
Navistar projected total truck industry retail sales for Class 6-8 trucks and school buses in the U.S. and Canada for the fiscal year ending Oct. 31, 2011, will be in the range of 230,000 to 250,000 units.
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