LISLE, Ill., Thu Mar 7, 2013 — Navistar International Corp. named a new chief executive as the truck and engine maker indicated it was on the road to recovery by forecasting market share gains in the second half of the year, pushing its stock 26 percent higher on Thursday.
The company said Chief Operating Officer Troy Clarke will take over as CEO, replacing Lewis Campbell, a former Textron Inc. chief. Campbell took over as interim CEO in August after Navistar fired Daniel Ustian over the failure of its new generation diesel engines.
Under Campbell, Navistar cut jobs, sold interests in non-core joint ventures, raised money by selling shares and avoided a proxy fight with Carl Icahn by agreeing to appoint new board members.
“Our turnaround is well underway and is gaining momentum, which is why we are now ready to put a longer-term CEO in place,” Campbell said on a conference call with analysts. “We can see the end of the runway and it looks very good.”
Shares of Navistar, which also reported a narrower quarterly loss and an improved cash balance on Thursday, were trading up more than $6 at $31.45 on hopes that the worst is over for the company.
Campbell said he recommended to the board that Clarke be promoted. Clarke joined Navistar from General Motors in 2010. He was named COO last year.