|Bid||37.35 x 800|
|Ask||37.37 x 1000|
|Day's Range||37.21 - 37.70|
|52 Week Range||21.32 - 39.52|
|Beta (5Y Monthly)||2.19|
|PE Ratio (TTM)||16.83|
|Earnings Date||Mar 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Oct 23, 2001|
|1y Target Est||35.00|
Navistar International Corporation (NYSE: NAV) today announced that it will report its fiscal 2020 first quarter financial results on Wednesday, March 4, 2020.
The Mexican government on Thursday ratified an environmental rule that requires truck and bus makers to manufacture and sell only vehicles running on clean diesel starting in January 2021, despite criticism from the industry. The Ministry of Environment said in the statement that it recognized the need to develop a plan to distribute ULSD more strategically and was participating in a working group with Pemex to modify another standard issued by energy regulator CRE, which also calls for clean diesel.
Mexican truck and bus output fell sharply at the end of last year due in large part to doubts over the future of a new diesel rule that would require that only vehicles using cleaner-burning fuel are made and sold, according to a local trade group. The assembly of trucks and buses fell nearly 38% in December, data from trade association Anpact showed, in line with falling production of heavy vehicles since August. The trade group attributed the production decline to companies' hesitation to update their fleets amid uncertainty about a rule that would mandate the use of clean diesel starting in 2021.
The timing of TRATON SE's $2.9 billion buyout bid for Navistar International Corp. (NYSE: NAV) could be influenced by Troy Clarke's mandated retirement as CEO of the truck maker he has guided through inherited crises. Other factors, including the preference of billionaire investor Carl Icahn, may be larger factors in whether Navistar becomes TRATON's vehicle into the North American heavy- and medium-duty truck market. It would preserve a Big Four that includes the North American units of Daimler AG (OTC: DDAIF), AB Volvo (OTC: VLVLY) and PACCAR Inc. (NASDAQ: PCAR).
(Bloomberg) -- Volkswagen AG offered to buy the rest of Navistar International Corp. in a $2.9 billion bid to secure a bridgehead in the U.S. heavy-truck market and step up its challenge to Daimler AG and Volvo AB.The expansion was somewhat offset by Volkswagen’s first major divestment since the German automaker skidded into the diesel-emissions scandal in 2015. An agreement to sell industrial machinery unit Renk AG, valued at 760 million euros ($840 million), indicates VW is more inclined to bulk up than slim down, even amid the costly shift to electric cars.The swoop for Navistar, which was first reported by Bloomberg, would reduce the reliance of VW’s heavy-truck unit Traton SE on Europe and South America.While the deal could help the company vie with Daimler and Volvo in North America, heavy-truck makers are preparing for a downturn after years of growth. Navistar, truck-engine maker Cummins Inc. and supplier Meritor Inc. announced thousands of job cuts late last year.VW’s heavy-truck division was created from acquisitions of Germany’s MAN and Sweden’s Scania. The unit had for years struggled to combine the operations before hiring former Daimler executive Andreas Renschler, who successfully spearheaded a partial listing of Traton last year.$35 a ShareTraton offered Navistar holders $35 a share in cash, 45% higher than its Thursday closing price. Lisle, Illinois-based Navistar -- which builds International-brand trucks, school buses, defense vehicles and engines -- said its board will review the proposal and there’s no assurance the deal will take place.Shares of Navistar, whose biggest holder is billionaire investor Carl Icahn, soared as much as 56% to $37.48 on Friday. VW, which already owns a stake of almost 17%, traded lower amid a broader market selloff, while Traton was little changed.What Bloomberg Intelligence SaysTraton’s much-anticipated bid to acquire the remainder of Navistar at $35 a share represents a modest 2020 Ebitda multiple of 7.3x, a discount to its larger peers. While Traton could face some pressure to sweeten the offer, we believe a competing bid is unlikely given antitrust scrutiny and a lack of potential suitors.\-- Christopher Ciolino, BI industry analystClick here for the researchVW purchased its stake in Navistar in September 2016, laying the groundwork for a footprint in North America, the truck industry’s largest source of profits. Daimler’s Freightliner and Volvo’s Mack divisions generate significant sales in the region.It’s unclear whether VW’s offer will satisfy Icahn, 83, and Mark Rachesky, the founder and chief investment officer of MHR Fund Management, which is Navistar’s third-largest shareholder with a 16% stake.Icahn, who first bought into Navistar in 2011, built his holding with an average cost per share of $33.62, and the stock has traded below that level for most of the last year. Rachesky’s average price paid was $27.80, according to data compiled by Bloomberg.Rare StreamliningIf a deal closes, VW will take over a company in the midst of a fix-it job. Navistar said in December it will reduce employment by 10% and cut its 2020 revenue forecast to a range of $9.25 billion to $9.75 billion, below analysts’ lowest estimate.Alongside the expansion, Wolfsburg, Germany-based VW agreed to sell Renk to private equity firm Triton Partners. The company was acquired as part of the automaker’s acquisition of MAN and represents a rare streamlining move by VW, which has been reviewing its non-core businesses for years with little progress.(Updates with Bloomberg Intelligence analyst’s quote after seventh paragraph)\--With assistance from Aaron Kirchfeld.To contact the reporters on this story: Christoph Rauwald in Frankfurt at firstname.lastname@example.org;Eyk Henning in Frankfurt at email@example.com;Ed Hammond in New York at firstname.lastname@example.org;David Welch in Southfield at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, ;Liana Baker at email@example.com, Chris Reiter, Iain RogersFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Volkswagen's TRATON SE truck unit late Thursday offered $2.9 billion, or $35 a share in cash, for the 83% of Navistar International Corp. (NYSE: NAV) it does not already own. After-hours trading in Navistar, which makes International-branded medium- and heavy-duty trucks, sent the stock rocketing 47% higher to $35.60, above TRATON's offer price. Navistar has close and growing cooperation with TRATON, which purchased 17% of Navistar for $256 million in September 2016.
Stock in truck maker (NAV) is soaring after receipt of a buyout offer from (8TRA)—the trucking spinoff from (VOW3) which began life as a public company in 2019. Navistar (ticker: NAV) shares are up 55% to $37.25 in premarket trading. The company confirmed the receipt of an unsolicited offer from Traton (8TRA.Germany) Thursday evening.
Navistar shares shot up by 50% to just over $36 a share in after-hours trading following Traton's proposal, suggesting investors expect a potential deal could be richer than Traton's opening offer. Traton said its offer was subject to Navistar and Traton reaching a merger agreement.
European shares are up 0.3%, although U.S. futures still imply a weaker open and Asian shares gave up their efforts to rise and closed 0.3% lower. Analysts reckon that when Chinese markets reopen next week and catch up with all the overseas falls, China's central bank will be on hand to supply liquidity in dollops and also prevent the yuan weakening beyond 7 to the dollar. Similar picture with South Korea’s upbeat industrial output figures; they date to December.
A subsidiary of Volkswagen has offered $35 a share for Navistar International Corp. , the U.S. truck maker said Thursday. The company said in a statement that it had received an unsolicited bid from Traton SE to acquire it for $35 a share in cash.
Shares of Navistar International Corp. shot up 53% in the extended session Thursday after the commercial truck and bus manufacturer said Volkswagen AG's subsidiary Traton SE has offered to buy it for $35 a share in cash. Navistar board and advisers "will carefully review and evaluate the proposal," the company said. Navistar does not plan on making additional comments about it unless a formal agreement has been reached, it said. Shares of Navistar ended the regular trading day down 0.2%. Traton is the maker of Scania and Man trucks.
Navistar International Corporation (NYSE: NAV) today confirmed that it has received an unsolicited proposal from TRATON SE regarding a potential transaction to acquire the company for $35 per share in cash.
Commercial vehicles are going electric through launches of demonstration fleets of varying sizes testing the viability of running on battery power or hydrogen fuel cells instead of diesel. Smaller commercial vehicles, like pickup and delivery vans, get the most interest because their electric propulsion systems require fewer batteries that take up space for cargo. According to the U.S. Department of Transportation, 37% of freight moved less than 100 miles in 2015.
"Overbuying through 2019 and insufficient freight to absorb the ensuing capacity overhang continued to weigh on the front end of the Class 8 demand cycle in December," said Kenny Vieth, ACT president and senior analyst. Truck makers saw the slowdown eat away at a record industry backlog of a year ago and cut production that resulted in thousands of job losses. Volvo Trucks North America is cutting 700 jobs this month.
ACT reported used Class 8 same dealer sales volumes in November fell 35% compared with October. The average miles on a Class 8 truck were up 1% year to date, while the age was up 5% and prices were flat, ACT reported.