Something good is happening..the markets are DOWN over 200....and NAV is moving right on UP! Looks like SOMEONE, other than those nay-sayers here on this Board, know something to make this stock move on up!
Continued: Financial Services: Revenues in the segment were almost flat at $50 million compared with $51 million a year ago. However, segment profit rose significantly by $20 million to $32 million led by significant improvement in portfolio performance.
Navistar had cash and cash equivalents of $399 million as of January 31, 2011, a decrease from $585 million in the year-ago period. Long-term debt amounted to $4.61 billion as of the above date, a decline from $4.87 billion a year ago. Long term debt-to-capitalization ratio was almost flat at 1.24 as of January 31, 2011 compared with 1.25 as of October 31, 2010.
In the quarter, Navistar had a net cash flow of $5 million from operating activities, a drastic decline from $125 million in the same period of the prior year, mainly due to lower net income. Meanwhile, capital expenditure increased to $95 million from $40 million in the same quarter fiscal 2010.
Illinois-based Navistar International Corporation, a Zacks #3 Rank (Hold) stock, manufactures and markets commercial trucks, mid-range diesel engines, buses, military vehicles and chassis for motor homes and step-vans, and provides service parts for various trucks and trailers.
The company is one of the largest truck producers after Daimler AG (Other OTC: DDAIF.PK - News) and PACCAR Inc. (NasdaqGS: PCAR - News). It anticipates to generate a profit of $388 million to $465 million or $5.00 to $6.00 per share for fiscal 2011, excluding transition costs associated with the integration of the truck and engine engineering operation.
The company also expects total truck industry retail sales volume for Class 6-8 trucks and school buses in the U.S. and Canada of 260,000 units for the fiscal year, a 36% increase from 191,300 units in fiscal 2010. The company aims to achieve revenues of $2 billion from its military business for the fiscal year as Navistar Defense continues to win orders and fill its order backlog.
Truck: Revenues in the segment inched up 5% to $1.8 billion. However, the segment profit decreased by $3 million to $32 million. The segment benefited by improvements in commercial revenue due to better pricing, which was offset by $18 million of engineering integration costs related to restructuring activities at the company’s Fort Wayne, Indiana engineering facility and postretirement and contract termination benefits costs of $4 million at its Springfield, Ohio truck facility.
Engine: Revenues in the segment dipped 23% to $481 million due to lower South American diesel volumes.Consequently, the segment reported a loss of $8 million in contrast to a profit of $54 million in the year-ago quarter.
Parts: Revenues in the segment fell marginally by 1% to $412 million. Profits in the segment declined to $56 million from $79 million due to lower military parts profits.
Navistar International Corporation (NYSE: NAV - News) saw a rise in profit to $12 million or 16 cents per share (excluding the impact of costs to integrate its truck and engine engineering operation) in the first quarter of fiscal 2011 from $2 million or 3 cents per share in the year-ago quarter -- excluding the impact of benefits from the Ford Motor’s (NYSE: F - News) restructuring and related activity. However, the company’s profit was lower than the Zacks Consensus Estimate of 22 cents per share.
The increase in profit was driven by solid recovery in its traditional North American markets. Consequently, the company lifted truck production schedules by 40% on various models on the back of an increasing order activity.
Total segment profit rose significantly by 52% to $80 million from $168 million in the year-ago quarter. Revenues during the quarter slipped 2% to $2.74 billion due to lower revenues generated from the Engine segment.