Navistar 4Q earnings fall, hurt by contract costs

WARRENVILLE — Navistar International Corp.'s fourth-quarter net income slid 55 percent, weighed down by costs related to a new labor agreement.

The company, whose subsidiaries and affiliates make military trucks, school and commercial vehicles, earned $39 million, or 54 cents per share, for the three months ended Oct. 31. That's down from $86 million, or $1.19 per share, a year ago.

Analysts surveyed by Thomson Reuters, whose estimates usually remove one-time items, expected higher earnings of 60 cents per share.

Total costs and expenses rose to $3.3 billion from $3.17 billion, Navistar said Wednesday. A new four-year labor agreement impacted results by 14 cents per share.

Revenue climbed 2 percent to $3.37 billion from $3.29 billion, helped by increased revenue from its truck segment.

Wall Street expected $3.21 billion in revenue.

Navistar's full-year earnings declined 30 percent to $223 million, or $3.05 per share, compared with $320 million, or $4.46 per share, in the previous year.

Annual revenue improved to $12.15 billion from $11.57 billion.

Navistar is based in Warrenville, Ill.