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NAVISTAR INTERNATIONAL Corp. Reports Operating Results (10-Q)

June 07, 2012 | About:

NAVISTAR INTERNATIONAL Corp. (NYSE:NAV) filed Quarterly Report for the period ended 2012-04-30.

Navistar Intl has a market cap of $1.85 billion; its shares were traded at around $28.15 with a P/E ratio of 8.7 and P/S ratio of 0.1. Navistar Intl had an annual average earning growth of 0.4% over the past 10 years.

Highlight of Business Operations:

For the second quarter and first half of 2011, we had earnings attributable to Navistar International Corporation of $74 million and $68 million, or earnings of $0.93 and $0.87 per diluted share, respectively. Adjusting to exclude the impacts of our engineering integration actions and charges for adjustments to pre-existing warranties during the second quarter and first half of 2011, we recognized adjusted net income attributable to Navistar International Corporation of $102 million and $123 million, or earnings of $1.30 and $1.59 of diluted earnings per share, respectively.

Truck segment sales increased $84 million and $449 million, or 4% and 11%, in the second quarter and first half of 2012, respectively, predominantly due to increased volumes and average sales prices in our "traditional" markets, as well as improved worldwide truck volumes driven by strong sales volumes in South America, partially offset by lower military sales.

In the second quarter and first half of 2012, Truck segment net sales increased $84 million and $449 million, or 4% and 11%, respectively, predominantly due to increased volumes and average sales prices in our "traditional" markets, as well as improved worldwide truck volumes driven by strong sales volumes in South America, partially offset by lower military sales. The increase in worldwide chargeouts reflects increases of 38% and 54% within our Class 8 heavy truck in the second quarter and first half of 2012, respectively.

The Truck segment incurred a loss of $89 million and $130 million in the second quarter and first half of 2012 compared to income of $92 million and $124 million in the respective prior periods. The decrease in segment profit in both periods was primarily due to lower military sales and shifts in military product mix, higher commodity costs, a charge for certain engine extended warranty contracts, and asset impairment charges. Partially offsetting these factors were higher worldwide volumes and benefits from manufacturing cost efficiencies largely due to our flexible manufacturing strategy and other actions.

In the second quarter and first half of 2012, the Financial Services segment net revenues decreased by $16 million and $21 million, or 19% and 13%, respectively, primarily driven by the continued decline in the average retail finance receivable balances. The decline in the average retail finance receivable balance is reflective of U.S. retail loan originations that are now primarily funded under the GE operating agreement. During the second quarter of 2012, the average finance receivable balances were $2.9 billion, compared to $3.1 billion during the second quarter of 2011.

Read the The complete Report

About the author:

10qk
Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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