NEW YORK – Truck and engine maker Navistar International Corp. said it expects a slight rebound in North American truck sales this year and a bigger one in 2010, sending its shares up 13 percent, according to Reuters.

"We do believe that 2010, instead of being a trough year, will be a lot higher than 2009," Chief Executive Daniel Ustian said on a conference call with analysts.

Navistar shares initially fell after the company issued an earnings forecast and said the industry was still challenged heading into 2009. But on the conference call it said its forecast included up to $3 per share in pension-related costs, reflecting the recent stock market selloff.

Navistar said it expects fiscal 2009 earnings of $5.10 to $5.60 per share on sales of $15 billion to $16 billion.

It said it expects a pick-up in North American retail sales of heavy-duty trucks this year and next, after a year that was one of the weakest for the industry in more than three decades.

It expects industrywide U.S. and Canadian retail sales of heavy-duty trucks and school buses to total 244,000 to 256,000 vehicles this fiscal year. Sales were 244,100 vehicles in fiscal 2008, it said.

"The only people buying trucks are the stronger companies -- the larger fleets (are) buying trucks," Ustian said. "The small guy is not buying. He can't get money."

Navistar said it can partly offset weak industry volumes by gaining market share, cutting costs, introducing more efficient engines, and expanding in the military truck market. It said it wins more than 80 percent of the military contracts on which it bids.

Ustian said aging fleets and falling diesel prices may support truck demand, and the company is pushing for legislation that would bring diesel fuel prices down to parity with gasoline.