(By Balaseshan) Navistar International Corp. (NYSE:NAV) shares fell more than 7% in premarket after the truck manufacturer withdrew its full year 2012 guidance, and provided third quarter revenue outlook below Street.
Navistar withdrew its fiscal 2012 guidance until the company releases its third quarter results in September, at which time it will provide an updated full-year outlook.
The changes reflect the company's transition to the ICT+ (In-Cylinder Technology Plus) engine solution, its ongoing work with EPA regarding this solution, and uncertainty regarding overall global demand for trucks and engines, particularly in key markets such as India and Brazil.
The company anticipates third quarter revenue of $2.8 billion to $3.0 billion, while Street predicts $4.17 billion. Navistar expects adjusted manufacturing segment profit to be between $15 million and $40 million, and adjusted pretax loss of $80 million to $115 million.
Navistar's overall market share for the fiscal third quarter is projected to remain flat: Class 8 at 17% to 18%; Class 6-7 at 35% to 36%; and school bus at 48% to 49%.
The company anticipates its manufacturing cash to be between $575 million and $625 million at the end of the third quarter.
In addition, the company announced significant actions that build on its previously announced introduction of ICT+ and are designed to enhance the company's competitive position and drive profitable growth and shareholder value.
To accelerate delivery of ICT+, Navistar has entered into a non-binding memorandum of understanding, under which Cummins Emission Solutions would supply its proven urea-based aftertreatment system to Navistar. This would be combined with Navistar's advanced in-cylinder engine to create ICT+.
Navistar expects that by combining Cummins' aftertreatment system with its existing MaxxForce engines, its ICT+ will meet 2010 U.S. Environmental Protection Agency (EPA) emissions regulations and position the company to meet greenhouse gas (GHG) rules in advance of 2014 and 2017 requirements.
NAV ended Wednesday's regular session at $24.77. The stock has been trading between $20.21 and $48.18 for the past 52 weeks.