Navistar International Corporation (NAV) revealed that the company sold its recreational vehicle (:RV) business to Allied Specialty Vehicles Inc. (“ASV”), which is a leading producer of specialty vehicles to the fire & emergency, commercial and industrial and recreational vehicles markets worldwide. However, the truck maker did not disclose the terms of sale.
Navistar RV manufactures motorized and towable recreational vehicles, which includes the Monaco, Holiday Rambler, and R-Vision brands. The $1 billion company, ASV, purchased all the equity interests of Navistar RV, including the manufacturing operations of Navistar’s R-Vision and Holiday Rambler towable units in Harrisburg, Oregon and Monaco and Holiday Rambler motorized RV brands in Wakarusa, Ind.
ASV has also entered a multi-year leasing agreement for Navistar RV's Elkhart, Ind., facility. However, the sale does not include Bison Coach – Navistar’s horse trailer manufacturing business.
Shares of the truck making company gained 1.9% since the announcement of sale of RV business. Currently, they retain a Zacks Rank #3 (Hold).
Navistar recorded a narrower loss of $114.0 million or $1.42 per share in the first quarter of fiscal 2013 (ended Jan 31, 2013) compared with $144.0 million or $2.06 per share in the year-ago quarter. However, the loss per share was better than the Zacks Consensus Estimate of a loss of $1.63 per share.
The company expects to be profitable with the improvement in quality, launch of new SCR engine programs and delivery according to the 2013 operating plan in the near future.
Revenues declined 12.4% year over year to $2.6 billion in the quarter, missing the Zacks Consensus Estimate of $2.8 billion. The year-over-year decline in revenues was due to sluggish industry demand and lower market share of the company due to its transition to clean engine systems as per EPA regulation. It expects to release its fiscal 2013-second quarter results on Jun 3.
Few stocks that are performing well in the industry where Navistar operates include Federal-Mogul Corp. (FDML), STRATTEC Security Corporation (STRT) and Tower International Inc. (TOWR). They carry a Zacks Rank #1 (Strong Buy).
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