Navistar Stock Gains 7.2 Percent on News of 4Q Profit

Navistar International saw its stock gain 7.2 percent to $38.08 in the opening session of trading Tuesday morning, following news that the engine and truck manufacturer achieved a fiscal fourth quarter profit of $86 million

, or $1.19 a share. During the year-ago quarter, Navistar posted a loss of $343 million, or $4.81 a share.

As the Wall Street Journal reports, the company's sales increased as fleets scrambled to buy older trucks to avoid the upcharge of purchasing the new 2010 engines, which are compliant with EPA 2010 emissions standards.

"During one of the weakest economies we can recall, we are pleased with our performance and our ability to continue to invest in the long-term future of the business," said A.J. Cederoth, Navistar's executive vice president and chief financial officer. "As a result, we believe we are well positioned to capitalize on a variety of opportunities that lie ahead."

Sales and revenue for the quarter was $3.3 billion, compared with sales and revenue of $3.9 billion during the fourth quarter of fiscal 2008.

Within the company's manufacturing segment, it posted profit of $232 million during the 2009 quarter, compared with a loss of $168 million for the 2008 quarter.

For the year ending Oct. 31, the company posted a profit of $147 million within its truck segment, compared with $805 million in profit in 2008. The company's engine sector saw $253 million in profit for the year, up from $366 million in losses in 2008, a reflection of Navistar's increased equity ownership in Blue Diamond Parts.

The parts segment saw a profit of $436 million for the year, up 72 percent from 2008. The sector benefited from the company's expansion into the military market, which increased sales by $519 million.

In December, Navistar completed its acquisition of the cement mixer manufacturing business of Continental Manufacturing Company, and invested in Danish technology company Amminex, which makes a type of NOX-reducing emissions technology -- a selective catalytic reduction process that does not rely on the addition of diesel exhaust fluid.

"Our actions have enabled us to deliver exceptional 2009 results, while simultaneously making it possible for us to succeed in an improving economy and deliver continued profitability over the next several years," said Daniel Ustian, Navistar's chairman, president and CEO. "The momentum established in the wake of these accomplishments positions us well for long-term success and to take on the challenges that 2010 will pose for all in our industry."