Navistar forecast tops estimates

Navistar International Corp., the maker of International brand trucks, rose the most in more than 21 months after forecasting profit that exceeded analysts' estimates and raising its projection for industry sales volume.

The shares climbed $5.13, or 8.6 percent, to $64.96 at 10:04 a.m. in New York Stock Exchange composite trading. They earlier gained as much as 11 percent, the biggest intraday increase since April 9, 2009.

Per-share earnings excluding some items will be $5 to $6 in the year ending Oct. 31, Warrenville-based Navistar said in a statement today. The average estimate of 16 analysts surveyed by Bloomberg was for profit of $4.89.

The profit forecast is based on “a stronger economy, further expansion of our after-market service parts business and continued benefit from great products, a competitive cost structure and profitable growth,” Chief Executive Officer Dan Ustian said in the statement.

Truck industry retail sales for the fiscal year will rise to 240,000 to 260,000 vehicles from 191,300 a year earlier, Navistar said. That's up from the company's December forecast of 230,000 to 250,000.

For fiscal 2010, Navistar reported net income of $223 million, or $3.05 a share, on sales of $12.1 billion.