Shares of Navistar International Corp. rose in early trading Tuesday, after the truck and bus manufacturer said it sees a stronger economy ahead and raised its fiscal 2011 earnings guidance.
The Warrenville-based company said net income for its year ending Oct. 31, 2011, is expected to be $388 million to $466 million, or $5 to $6 a share, excluding certain transaction costs. Analysts had forecast 2011 earnings of around $4.70 a share.
“Coming out of the recession, we have developed today’s earning guidance around 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,” said Daniel Ustian, Navistar’s chairman, president and CEO.
The company said it expects retail sales of Class 6-8 trucks and school buses domestically and in Canada to total 240,000 to 260,000 units, up from 191,300 in fiscal 2010.
Shares of Navistar closed at $63.09 Tuesday on the New York Stock Exchange, up 5.4 percent on the day.
