Now that Navistar has been dropped as diesel engine supplier for Ford I saw an interesting interview on CNBC. The interview was about stocks to hold or sell. The person being interviewed was recommending selling Navistar short. The reason: poor reliability, poor quality control and lower sales. I didn't get all of the interview so I don't know if Navistar no longer having the Ford diesel engine contract was mantioned as part of the lower sales. I hope this isn’t too much off topic but i did find it interesting. <?xml:namespace prefix = o ns =
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Navistar Receives J.D. Power and Associates Customer Satisfaction Awards
International® Brand Commercial Trucks Rank Highest in Vocational Truck Segment and Dealer Service Among Class 8 Customers

Warrenville, IL (July 1, 2010) Navistar, Inc.'s International® brand commercial trucks rank highest in customer satisfaction among Class 8 truck owners in the Vocational Truck and Dealer Service segments - the only two categories recognizing the Class 8 truck industry this year - according to the J.D. Power and Associates 2010 Heavy-Duty Truck Customer Satisfaction Study (SM) released today.

 

Navistar Reports 3Q $137M Net Income on Improved Performance of Core Businesses, Strong Military Sales
3Q Results Show Improved Performance from Core Businesses in Difficult Economy

WARRENVILLE, Ill. (Sept. 8) – Driven by continued advances in its core business, increased military sales and improvements in its cost structure, Navistar International Corporation (NYSE: NAV) reported profitable results for the third quarter ended July 31, 2010.

“Third-quarter results showed a continuation of the company’s ability to be profitable in difficult economic conditions. Beyond strong military sales, we saw improved performance from our core businesses in truck, engine and particularly service parts,” said Daniel C. Ustian, Navistar chairman, president and chief executive officer.

Even though the industry continues at a nearly 50-year low, net income attributable to Navistar International Corporation for the third quarter ended July 31, 2010, totaled $137 million, equal to $1.83 of diluted earnings per share. Revenues for the third quarter totaled $3.2 billion. Net loss for the third quarter a year ago was $12 million, equal to $0.16 of diluted net loss per share.

“All of our businesses continue to perform well,” said Ustian. “We are encouraged by the results of the third quarter and expect to deliver full year results toward the upper end of our earnings guidance. In addition, we are experiencing several successful product launches and are actively delivering 2010-compliant products to our customers.”

Segment Results;

Truck — For the 2010 third quarter, the truck segment realized a profit of $227 million, compared with a year-ago third quarter loss of $28 million. The increase was aided by substantial military sales as part of the company’s International® MaxxPro® Dash Mine Resistant Ambush Protected (MRAP) vehicle and the military commercial off-the-shelf truck programs, improved commercial performance and continued material and manufacturing cost improvements. Commercial units sold in the company’s traditional United States and Canada Class 6-8 truck and school bus business increased by 7 percent for the third quarter and 12 percent for the nine-month period, compared with the respective prior year periods.

Engine — The engine segment nearly broke even for the third quarter in the face of the ongoing expenses associated with the launch of three families of the company’s 2010-compliant engines. In addition, the results were augmented by the 29 percent increase in its South American engine shipments over the year-ago third quarter and the increased ownership of the company’s Blue Diamond Parts operations while offset by decreased volumes in North America due to the expiration of the company’s contract with Ford. This is compared with a year-ago third quarter profit of $45 million, which was impacted by the Ford settlement and other related charges as the company began to transition from its business with Ford.

Parts — The parts segment reported a 2010 third-quarter profit of $52 million, compared with a year-ago profit of $93 million, which was positively impacted by strong MRAP parts volumes. The parts segment continues to deliver profits due to increased volumes in business in North America, partially offsetting the impact of declines in U.S. military sales.

 

The charts don't support any doom or gloom for NAV. Like the rest of the county, Navistar took a dump end of '08 and has been in recovery since. It's clear the end of this summer has shown a correction and may present a buying opportunity. Hard to tell without better research.

 

The reason for the Sell advice is because they still don't have a workable solution for EPA2010. The just started selling 2010 engines last month but none are at .2g NOx. The fact they stockpiled engines is illegal and they are under investigation for it. They are the ONLY heavy truck OEM without SCR. Their engines are NOT meeting the EPA guidelines and their solution of Massive EGR is going to kill them because they can't get the wanted HP out of their engines because of too much heat and the fuel economy is going to really take a hit. Ustian will be back pedalling very shortly.