Navistar Q2 profit misses, shares decline

June 7 (Reuters) – Navistar International Corp posted second-quarter profit below market estimates, hurt by costs related to some of its joint ventures, sending shares down about 4 percent in early trading.

The truck and engine maker also raised the lower end of its 2011 adjusted earnings outlook, expecting growing demand for its products.

“We continue to see increasing customer acceptance of all our engine and vehicle families, confirming we have the right strategy in place and that we will deliver full-year results toward the higher side of our previous guidance,” Navistar said.

The company now expects its full-year adjusted earnings of $5.50-$6 a share, up from its prior view of $5-$6 a share.

Analysts, on an average, have forecast that the Warrenville, Illinois-based company will earn $5.44 per share in the year ending October, according to Thomson Reuters I/B/E/S.

For the quarter ended April 30, net income attributable to Navistar International rose 72 percent to $74 million, or 93 cents per share, from $43 million, or 60 cents a share a year earlier.

Adjusted earnings were $1.02 per share.

Sales rose to $3.4 billion from $2.7 billion a year ago.

Analysts expected earnings of $1.17 a share on $3.3 billion in sales.

Navistar has said it expects the second half of fiscal 2011 to be stronger than the first half, driven in part by rising demand for the type of emissions control technology it uses in engines it manufactures.

Navistar’s rivals include Daimler AG’s Freightliner unit, Volvo and Paccar

The company, which has a market value of about $4.59 billion, competes with Cummins on engines, and uses Cummins engines in some of its trucks.

Navistar’s shares fell 4 percent in early trading to $60.26 on the New York Stock Exchange. Prior to the results, the shares had been up 8.6 percent so far this year, outpacing the 2.3 percent rise in the S&P 500 index (Reporting by Fareha Khan in Bangalore and Lynn Adler in New York; Editing by Savio D’Souza, Joyjeet Das, Dave Zimmerman)