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Report Date : |
31.07.2014 |
IDENTIFICATION DETAILS
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Name : |
NAVISTAR INTERNATIONAL CORP. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
29.03.1985 |
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Legal Form : |
Public Company |
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Line of Business : |
Manufactures and sells commercial and military trucks, diesel engines,
and school and commercial buses; and provides service parts for trucks and diesel
engines. |
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No. of Employees : |
16,269 (For The Group) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
UNITED STATES - ECONOMIC OVERVIEW
The
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Source
: CIA |
NAVISTAR INTERNATIONAL CORP.
Address:
Telephone: +1
331-332-5000
Fax: +1 630-753-2305
Website: www.navistar.com
Corporate ID#: 2058251
State:
Judicial form: Public Company (NYSE = NAV)
Date incorporated: 03-29-1985
Stock: 1,328,555
shares issued and outstanding (as of 05-31-2014)
Value: USD 0.10= par value
Name of manager:
BUSINESS:
Navistar International Corporation, through its subsidiaries,
manufactures and sells commercial and military trucks, diesel engines, and
school and commercial buses; and provides service parts for trucks and diesel
engines worldwide.
It operates through four segments: North America Truck, North America
Parts, Global Operations, and Financial Services.
The company manufactures and distributes Class 4 through 8 trucks and
buses in the common carrier, private carrier, government, leasing,
construction, energy/petroleum, military vehicle, and student and commercial
transportation markets under the International and IC brands; and designs,
engineers, and produces sheet metal components, including truck cabs. It also
provides customers with proprietary products needed to support the
International commercial and military truck, IC Bus, and MaxxForce engine
lines, as well as other product lines; and a selection of other standard truck,
trailer, and engine aftermarket parts.
In addition, the company designs and manufactures diesel engines across
the 50 through 550 horsepower range under the MaxxForce and MWM brand names;
produces mid-range diesel engines primarily under contract manufacturing
arrangements for sale to original equipment manufacturers in South America; and
manufactures diesel engines for the pickup truck, van, and sport-utility
vehicle markets.
Further, it provides retail, wholesale, and lease financing of its
trucks and parts, as well as financing for wholesale accounts and retail
accounts receivable.
The company markets its commercial products through an independent
dealer network, as well as through distribution and service network retail
outlets comprising 797 outlets in the
The company was founded in 1902 and is headquartered in Lisle,
Office of the Foreign
Assets Control (OFAC):
The company is not listed on the OFAC list.
The Specially Designated Nationals (SDN) List is a publication of OFAC
which lists individuals and organizations with whom
EIN: 36-3359573
Staff: 16,269 (for the group)
OPERATIONS & BRANCHES:
At the headquarters, we
find the corporate office.
SHAREHOLDERS:
The Company is listed with
the NYSE under symbol NAV.
As of 03-31-2014, 99% of
the stock was held by institutional and mutual fund owners, including:
|
Franklin Resources, Inc |
17.66% |
|
Icahn, Carl, C. |
16.37% |
|
MHR Fund Management, LLC |
16.07% |
|
Templeton Growth Fund, Inc. |
7.08% |
|
Gamco Investors Inc |
6.46% |
|
Discovery Capital Management, LLC |
6.21% |
Troy A. Clarke has been the President of Navistar International
Corporation since August 2012 and has been its Chief Executive Officer since
March 7, 2013. Mr. Clarke served as the Chief Operating Officer at Navistar
International Corporation from August 2012 to March 7, 2013. He served as the
President of Truck and Engine at Navistar International Corporation from June
2012 to August 2012. He served as President of Asia Pacific and Strategic
Initiatives at Navistar International Corporation. Mr. Clarke served as
President of Asia Pacific operations at Navistar, Inc., since April 2011 and
Navistar International Corp., since April 20, 2011. He served as Group Vice
President of Motors Liquidation Company since February 4, 2004. He is 38-year
automotive industry veteran. Mr. Clarke served as President of General Motors
North America since July 1, 2006. He served as President of North American
operations at Motors Liquidation Company since July 1, 2006. He served as Group
Vice President at General Motors de Mexico, S. de R. L. de C.V since July 1,
2006. Mr. Clarke served as Group Vice President of GM since February 4, 2004.
He served as GM Group Vice President of General Motors North America from 2006
to 2009. He served as the President of GM Asia Pacific from June 1, 2004 to
July 1, 2006 and as Vice President of General Motors North America since 2002.
He served as Group Vice President, Manufacturing and Labor Relations of General
Motors Corporation from 2001 to 2004 and was responsible for its
Mr. Clarke remained at
He is GM's key executive to
John J. ALLEN is Executive Vice President and COO.
Walter G. BORST is Executive Vice President and CFO.
Subsidiaries
And partnership:
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Subsidiaries that are 100% owned: |
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Navistar, Inc. |
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International of Mexico Holding Corporation |
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Subsidiaries that are 100% owned by Navistar, Inc.: |
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Navistar Canada, Inc. |
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Navistar Financial Corporation |
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IC Bus, LLC |
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SST Truck Company, LLC |
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Navistar Defense, LLC |
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Subsidiaries that are 100% owned by International of Mexico Holding
Corporation: |
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International Truck and Engine Corporation Cayman Islands Holding
Company |
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Navistar |
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Subsidiaries that are 100% owned by Navistar Canada, Inc.: |
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International Industria Automotiva da America do Sul Ltda. (merged
with MWM International Industria De Motores Da America Do Sul Ltda. effective
1/1/2011) |
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Subsidiaries less than 100% owned by Navistar, Inc., but considered to
be a significant subsidiary: |
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Blue Diamond Parts LLC |
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On June 5, 2014, Navistar International Corporation announced unaudited
consolidated earnings results for the second quarter and first half year ended
April 30, 2014.
For the quarter, the company reported sales and revenues, net of $2,746
million against $2,526 million a year ago. Loss from continuing operations
before income taxes was $264 million against $322 million a year
ago. Loss from continuing operations was $287 million or $3.66 basic and
diluted per share against $344 million or $4.39 basic and diluted per share a
year ago. Net loss attributable to the company was $297 million or $3.65 per
basic and diluted share against $374 million or $4.65 per basic and diluted
share a year ago. LBITDA was $119 million. Adjusted EBITDA was $82 million.
For the six months, the company reported sales and revenues, net of
$4,954 million against $5,163 million a year ago. Loss from continuing operations
before income taxes was $516 million against $406 million a year ago. Loss from
continuing operations was $527 million or $6.73 per basic and diluted share
against $443 million or $5.82 per basic and diluted share a year ago. Net loss
attributable to the company was $545 million or $6.70 per basic and diluted
share against $497 million or $6.19 per basic and diluted share a year ago. Net
cash used in operating activities was $326 million against $43 million a year
ago.
Capital expenditures were $50 million against $107 million a year ago.
For the quarter, the company reported asset impairment charges of $151 million.
The company provided earnings guidance for the third quarter of fiscal 2015.
For the period, the company expected EBITDA between $75 million - $125 million,
excluding pre-existing warranty and one-time items and expected between $950
million and $1.05 billion in manufacturing cash, cash equivalents and
marketable securities at the end of third quarter of 2014. Cash use for CapEx, cash
interest, pension and OPEB funding is expected increase in the third quarter
compared to second quarter, primarily due to higher cash interest payments. The
increase is due to the timing of interest payments on outstanding debt,
principally the 8.25% senior notes where the company make semiannual interest
payments in November and May. The company expects full year 2014 capital
spending to be less than $150 million.
On attachment:
- 10K 2013 (fiscal year
ending October 2013)
- 2nd 10 2014
Banks: Bank of
…
LEGAL FILINGS
& COMPLAINTS:
As of today date, there are several legal filings pending with various
Courts involving the Company as plaintiff or defendant.
Secured debts summary (UCC):
None (in
Haut du formulaire
TRADE REFERENCES:
Date reported: July 2014
High credit: USD 50,000
Now owing: 0
Past due: 0
Last purchase: June 2014
Line of business: Office supply
Paying status: 14 days beyond terms
Date reported: July 2014
High credit: USD 15,000,000
Now owing: 0
Past due: 0
Last purchase: June 2014
Line of business: Payroll
Paying status: As agreed
Date reported: July 2014
High credit: USD 3,000
Now owing: 0
Past due: 0
Last purchase: June 2014
Line of business: Telecommunications
Paying status: 8 days beyond terms
Domestic credit history
appears as follow:
Monthly Payment
Trends - Recent Activity
|
Date |
Up to 30 DBT |
31-60 DBT |
61-90 DBT |
>90 DBT |
||
|
02/14 |
$305,700 |
79% |
14% |
6% |
0% |
1% |
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03/14 |
$265,100 |
75% |
15% |
9% |
0% |
1% |
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04/14 |
$797,600 |
87% |
7% |
2% |
1% |
3% |
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05/14 |
$370,300 |
69% |
19% |
4% |
2% |
6% |
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06/14 |
$383,900 |
72% |
15% |
5% |
2% |
6% |
|
07/14 |
$394,200 |
64% |
21% |
7% |
2% |
6% |
National Credit Bureaus
gave a medium credit rating.
According to our credit analysts, during the last 6 months, domestic payments
were made with an average of 15 days beyond terms.
The Company maintains a
regular business.
The bank confirmed late
payments but remains confident.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
Last report was filed on
07-07-2014.
The risk is medium.
A business connection may
be conducted but we suggest you to check regularly the way of payments.
Standard & Poor’s
|
|
|
Publication
date: 05-Aug-2011 20:13:14 EST |
·
We have lowered our long-term
sovereign credit rating on the United States of America to 'AA+' from 'AAA' and
affirmed the 'A-1+' short-term rating.
·
We have also removed both the short- and long-term ratings
from CreditWatch negative.
·
The downgrade reflects our opinion
that the fiscal consolidation plan that Congress and the Administration
recently agreed to falls short of what, in our view, would be necessary to
stabilize the government's medium-term debt dynamics.
·
More broadly, the downgrade
reflects our view that the effectiveness, stability, and predictability of
American policymaking and political institutions have weakened at a time of
ongoing fiscal and economic challenges to a degree more than we envisioned when
we assigned a negative outlook to the rating on April 18, 2011.
·
Since then, we have changed our
view of the difficulties in bridging the gulf between the political parties
over fiscal policy, which makes us pessimistic about the capacity of Congress
and the Administration to be able to leverage their agreement this week into a
broader fiscal consolidation plan that stabilizes the government's debt dynamics
any time soon.
·
The outlook on the long-term rating
is negative. We could lower the long-term rating to 'AA' within the next two
years if we see that less reduction in spending than agreed to, higher interest
rates, or new fiscal pressures during the period result in a higher general
government debt trajectory than we currently assume in our base case.
The
transfer and convertibility (T&C) assessment of the
debt service--remains
'AAA'.
We lowered our long-term
rating on the U.S. because we believe that the prolonged controversy over
raising the statutory debt ceiling and the related fiscal policy debate
indicate that further near-term progress containing the growth in public
spending, especially on entitlements, or on reaching an agreement on raising
revenues is less likely than we previously assumed and will remain a
contentious and fitful process. We also believe that the fiscal consolidation
plan that Congress and the Administration agreed to this week falls short of
the amount that we believe is necessary to stabilize the general government
debt burden by the middle of the decade.
Our lowering of the
rating was prompted by our view on the rising public debt burden and our
perception of greater policymaking uncertainty, consistent with our criteria
(see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011, especially Paragraphs 36-41).
Nevertheless, we view the
We have taken the ratings
off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment
of 2011 has removed any perceived immediate threat of payment default posed by
delays to raising the government's debt ceiling. In addition, we believe that
the act provides sufficient clarity to allow us to evaluate the likely course
of
The
political brinksmanship of recent months highlights what we see as
the containment of which
we and most other independent observers regard as key to long-term fiscal
sustainability.
Our opinion is that
elected officials remain wary of tackling the structural issues required to
effectively address the rising U.S. public debt burden in a manner consistent
with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011, especially Paragraphs 36-41). In
our view, the difficulty in framing a consensus on fiscal policy weakens the
government's ability to manage public finances and diverts attention from the
debate over how to achieve more balanced and dynamic economic growth in an era
of fiscal stringency and private-sector deleveraging (ibid). A new political
consensus might (or might not) emerge after the 2012 elections, but we believe
that by then, the government debt burden will likely be higher, the needed
medium-term fiscal adjustment potentially greater, and the inflection point on the
U.S. population's demographics and other age-related spending drivers closer at
hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now," June 21, 2011).
Standard & Poor's
takes no position on the mix of spending and revenue measures that Congress and
the Administration might conclude is appropriate for putting the
The act calls for as much
as $2.4 trillion of reductions in expenditure growth over the 10 years through
2021. These cuts will be implemented in two steps: the $917 billion agreed to
initially, followed by an additional $1.5 trillion that the newly formed
Congressional Joint Select Committee on Deficit Reduction is supposed to
recommend by November 2011. The act contains no measures to raise taxes or
otherwise enhance revenues, though the committee could recommend them.
The act further provides
that if Congress does not enact the committee's recommendations, cuts of $1.2
trillion will be implemented over the same time period. The reductions would
mainly affect outlays for civilian discretionary spending, defense, and
Medicare. We understand that this fall-back mechanism is designed to encourage
Congress to embrace a more balanced mix of expenditure savings, as the
committee might recommend.
We note that in a letter
to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated
total budgetary savings under the act to be at least $2.1 trillion over the
next 10 years relative to its baseline assumptions. In updating our own fiscal
projections, with certain modifications outlined below, we have relied on the
CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to
include the CBO assumptions contained in its Aug. 1 letter to Congress. In
general, the CBO's "Alternate Fiscal Scenario" assumes a continuation
of recent Congressional action overriding existing law.
We view the act's
measures as a step toward fiscal consolidation. However, this is within the
framework of a legislative mechanism that leaves open the details of what is
finally agreed to until the end of 2011, and Congress and the Administration
could modify any agreement in the future. Even assuming that at least $2.1
trillion of the spending reductions the act envisages are implemented, we
maintain our view that the
Compared with previous projections,
our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due
to expire by the end of 2012, remain in place. We have changed our assumption
on this because the majority of Republicans in Congress continue to resist any
measure that would raise revenues, a position we believe Congress reinforced by
passing the act. Key macroeconomic assumptions in the base case scenario
include trend real GDP growth of 3% and consumer price inflation near 2%
annually over the decade.
Our revised upside
scenario--which, other things being equal, we view as consistent with the
outlook on the 'AA+' long-term rating being revised to stable--retains these
same macroeconomic assumptions. In addition, it incorporates $950 billion of
new revenues on the assumption that the 2001 and 2003 tax cuts for high earners
lapse from 2013 onwards, as the Administration is advocating. In this scenario,
we project that the net general government debt would rise from an estimated
74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside
scenario--which, other things being equal, we view as being consistent with a
possible further downgrade to a 'AA' long-term rating--features less-favorable
macroeconomic assumptions, as outlined below and also assumes that the second
round of spending cuts (at least $1.2 trillion) that the act calls for does not
occur. This scenario also assumes somewhat higher nominal interest rates for
U.S. Treasuries. We still believe that the role of the U.S. dollar as the key
reserve currency confers a government funding advantage, one that could change
only slowly over time, and that Fed policy might lean toward continued loose
monetary policy at a time of fiscal tightening. Nonetheless, it is possible
that interest rates could rise if investors re-price relative risks. As a
result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in
10-year bond yields relative to the base and upside cases from 2013 onwards. In
this scenario, we project the net public debt burden would rise from 74% of GDP
in 2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios
also take into account the significant negative revisions to historical GDP
data that the Bureau of Economic Analysis announced on July 29. From our perspective,
the effect of these revisions underscores two related points when evaluating
the likely debt trajectory of the
When comparing the U.S.
to sovereigns with 'AAA' long-term ratings that we view as relevant
peers--Canada, France, Germany, and the U.K.--we also observe, based on our
base case scenarios for each, that the trajectory of the U.S.'s net public debt
is diverging from the others. Including the
Standard & Poor's
transfer T&C assessment of the
The outlook on the
long-term rating is negative. As our downside alternate fiscal scenario
illustrates, a higher public debt trajectory than we currently assume could
lead us to lower the long-term rating again. On the other hand, as our upside
scenario highlights, if the recommendations of the Congressional Joint Select
Committee on Deficit Reduction--independently or coupled with other
initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high
earners--lead to fiscal consolidation measures beyond the minimum mandated, and
we believe they are likely to slow the deterioration of the government's debt
dynamics, the long-term rating could stabilize at 'AA+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.15 |
|
|
1 |
Rs.101.92 |
|
Euro |
1 |
Rs.80.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.