Profile: Navistar International Corporation (NAV)

Navistar International Corporation (NIC), incorporated in 1993, is a holding company that operates through its principal operating subsidiaries, Navistar, Inc. and Navistar Financial Corporation (NFC). The Company operates in four segments: Truck, Engine, Parts (collectively called manufacturing operations), and Financial Services, which consists of NFC and its foreign finance operations (collectively called financial services operations). In June 2009, the Company increased its equity interest in its Blue Diamond Truck and Blue Diamond Parts joint ventures with Ford Motor Company to 75%. Navistar increased its equity interest in Blue Diamond Parts to 75% from 49%, and increased its equity interest in Blue Diamond Truck from 51%. On June 4, 2009, it acquired certain assets of Monaco Coach Corporation. In December 2009, the Company acquired Continental Mfg. Company, Inc.

Truck

The Truck segment manufactures and distributes a range of class four through eight trucks, buses under the International and IC Bus, LLC (IC) brands, and Navistar Defense, LLC military vehicles. Its Truck segment also produces chassis for motor homes and commercial step-van vehicles under the Workhorse Custom Chassis, LLC (WCC) brand and recreational vehicles under the Monaco RV, LLC brands. At October 31, 2009, the Company had ownership interests in 17 Dealcor entities, representing 51 physical locations, with its ownership interests ranging from 10% to 100%.

Engine

The Engine segment designs and manufactures diesel engines for use primarily in its class six and seven medium trucks and buses, and selected class eight heavy truck models, and for sale to original equipment manufacturers (OEMs) primarily in North America. In addition, it produces diesel engines in Brazil primarily for distribution in South America under the MWM brand for sale to OEMs. The Company has an agreement with Ford to be its supplier of V-8 diesel engines for all of its diesel-powered, super-duty trucks and vans over 8,500 pounds gross vehicle weight in North America which expires on December 31, 2009. Also included in the Engine segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of service parts for vehicles the Company and Ford sell in North America.

Parts

The Company’s Parts segment provides customers with products needed to support the International truck, IC bus, WCC chassis, Navistar Defense military vehicles, and the MaxxForce engine lines. Its Parts segment also provides a selection of other standard truck, trailer, and engine service parts. At October 31, 2009, this segment operated 11 regional parts distribution centers that provide around-the-clock availability and shipment.

Financial Services

The Financial Services segment provides retail, wholesale and lease financing of products sold by the Truck segment and its dealers within the United States and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable. Its Mexican financial services operations’ primary business is to provide wholesale, retail, and lease financing to dealers and retail customers in the Mexican market.

The Company competes with PACCAR Inc., Ford Motor Company, Freightliner, Western Star, Volvo, Mack, BAE systems, Force Protection Inc, General Dynamics Land Systems, General Purpose Vehicles, Oshkosh Truck, Protected Vehicles Incorporated, Isuzu Motors America, Inc., Nissan Diesel America, Inc., Mitsubishi Motors North America, Inc., Coachman Industries, Inc., Winnebago Industries, Kenmex, Mercedes Benz, Cummins Inc., Caterpillar Inc., Isuzu, Hino, Navistar, Inc., Toyota, Fiat Powertrain, Scania, Volvo, New Holland, Ford, Sisu Diesel and John Deere.