Navistar International reported 2011 first fiscal quarter earnings for the financial services segment more than doubled to $32 million as a result of significant improvement in portfolio performance. This compares to a segment profit of $12 million in the year-ago first quarter. Provision for loan losses decreased $14 million relative to the prior year as the quality of our retail portfolio improved significantly.

Navistar said that earnings from the company’s finance segment are expected to decline as its U.S. retail portfolio runs off as the company implements its strategic alliance with GE Capital.

Commenting on its truck segment, Navistar said overall earnings from operations were bolstered by the beginning of a solid recovery in its traditional North American markets. The company noted that in line with full year expectations, it significantly raised truck production schedules by up to 40% on various models to reflect increasing order activity.

In its outlook, the company said it anticipates that total truck industry retail sales volume for Class 6-8 trucks and school buses in the United States and Canada for the year ending October 31, 2011, will be 260,000 units. Truck industry volume in fiscal 2010 was 191,300 units.

To link to the PDF of Navistar International’s news release click here.