Profile: Navistar International Corp (NAV.N)
26 May 2017
Navistar International Corporation, incorporated on May 26, 1993, is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company's segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Company is an international manufacturer of International brand commercial and military trucks, diesel engines, IC Bus (IC) brand school and commercial buses, as well as a provider of service parts for trucks and diesel engines. It also provides retail, wholesale and lease financing services for its trucks and parts.
The Company's Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC brands, along with production of engines, primarily in the North America markets that include the United States, Canada and Mexico. Its Truck segment also includes its truck export business under the International and IC brands, as well as products that support the military truck product lines. The engines produced in North America are primarily used in its trucks and buses. The Truck segment's manufacturing operations in the United States and Mexico consist principally of assembling components manufactured by its suppliers, as well as designing, engineering and producing certain sheet metal components, including truck cabs and engines. The Truck segment's manufacturing operations also include the production of diesel engines, which are primarily used in its trucks, and include Pure Power Technologies metalcastings (PPT), which consists of a components business focused on air and fuel systems. The operations at the engine manufacturing facilities consist principally of the assembly of components manufactured by PPT and its suppliers, as well as machining operations relating to steel and grey-iron components, and certain technology components necessary for its engine operations.
The Company's Parts segment supports its brands of International commercial trucks, IC buses, engines, as well as other product lines, by providing customers with products together with a selection of other standard truck, trailer and engine service parts. In addition, its Parts segment includes its parts export business under the International and IC brands. It distributes service parts through the dealer network that supports its trucks and engines. It sells a substantial amount of all-make parts for light-, medium- and heavy-duty trucks (All-Make parts). The dealers and fleets have multiple outlets to purchase All-Make parts, including other original equipment manufacturers (OEMs), independent distributors and traditional retail outlets, including Fleetpride, TruckPro and National Auto Parts Association (Napa) Auto Parts.
Global Operations Segment
The Global Operations segment includes businesses that derive their revenue from outside its North America markets and primarily consists of the operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). IIAA is engaged in the South American mid-range diesel engine market, manufacturing and distributing mid-range diesel engines and providing customers with additional engine offerings in the agriculture, marine and light truck markets. Additionally, it also sells its engines to global OEMs for various on-and-off-road applications. It offers contract manufacturing services under the MWM brand to OEMs for the assembly of their engines, particularly in South America. Additionally as part of its IIAA operations, the Global Operations segment has engine manufacturing operations in Argentina. Its commercial products are marketed through its independent dealer network, which offers a range of services and other support functions to its end users. Its commercial trucks are distributed in certain markets through its distribution and service network of retail outlets. It distributes service parts internationally through its dealer network, as well as through direct shipments.
Financial Services Segment
The Company's Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers. It also finances wholesale and retail accounts receivable. NFC provides wholesale financing for new truck inventory sold to its dealers and distributors in the United States through the customary free interest period offered by Navistar, Inc.
The Company competes with PACCAR Inc., Ford, Daimler-Benz AG, Volvo Global Trucks, Toyota Motor Corporation, BAE Systems, General Dynamics Land Systems, Oshkosh Corporation, Isuzu Motors America, Inc., AB Volvo, Mitsubishi Motors North America, Inc., Cummins, Alliant Power, Jasper Engines & Transmissions, Delphi Automotive, Fiat Powertrain, Scania, MAN, CNH Global N.V., AGCO Corporation, and Deere & Company.
Navistar International Corp
2701 Navistar Dr
LISLE IL 60532-3637
Company Web Links
- CORRECTED-BRIEF-Navistar says Phil Christman named President of operations
- BRIEF-Jeffrey Dokho appointed to Navistar board of directors
- BRIEF-Carl Icahn reports 17.02% stake in Navistar International Corp
- BRIEF-Navistar International Q1 loss per share $0.76
- Weak U.S. truck market leads to bigger Navistar loss