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Report No. : |
338693 |
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Report Date : |
09.08.2015 |
IDENTIFICATION DETAILS
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Name : |
NAVISTAR INTERNATIONAL CORP. |
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Registered Office : |
2701 Navistar Drive, Lisle, IL 60532 |
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Country : |
United States |
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Financials (as on) : |
30.04.2015 |
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Date of Incorporation : |
29.03.1985 |
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Legal Form : |
Public Company (NYSE = NAV) |
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Line of Business : |
Subject is 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 Employee : |
14,493 (for the Group) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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United States |
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 US has the most technologically powerful economy in the world, with a per capita GDP of $54,800. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at Purchasing Power Parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.
In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.
Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.
The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.
Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008.
The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP.
Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.
In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.
In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.
In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and reduce them further as conditions warranted; the Fed ended the purchases during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since before the global recession began; inflation stood at 1.7%, and public debt as a share of GDP continued to decline, following several years of increase.
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Source
: CIA |
NAVISTAR
INTERNATIONAL CORP.
2701 Navistar Drive, Lisle, IL 60532- USA
Telephone: +1
331-332-5000
Fax: +1 630-753-2305
Website: www.navistar.com
Corporate ID#: 2058251
State: Delaware
Judicial form: Public Company (NYSE = NAV)
Date incorporated: 03-29-1985
Stock: 81,500,808
shares issued and outstanding (as of 05-31-2015)
Value: USD
0.10= par value
Troy A. CLARKE
Business:
Navistar International Corporation 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; 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; and its reconditioned used trucks to owner-operators and fleet
buyers through its network of used truck dealers.
As of October 31, 2014, it had approximately 758 outlets in the United
States and Canada, and 87 outlets in Mexico.
The company was founded in 1902 and is headquartered in Lisle, Illinois.
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 United States citizens and
permanent residents are prohibited from doing business.
EIN: 36-3359573
Staff: 14,493 (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:
|
Icahn,
Carl, C. |
19.97% |
|
MHR
Fund Management, LLC |
18.93% |
|
Franklin
Resources, Inc |
18.03% |
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Hotchkis & Wiley Capital Management, LLC |
8.79% |
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Gamco
Investors Inc |
8.13% |
Management:
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 North America
vehicle manufacturing, vehicle operations, Metal Fabricating Division, and
labor relations. He served as GM's Chief Negotiator for the 2003 United Auto
Workers labor negotiations. He served as an Executive Vice President of GM Asia
Pacific at Motors Liquidation Company since February 4, 2004. He served as
Group Vice President of Motors Liquidation Company since February 4, 2004. He
served as Plant Manager for GM North American Operation's Assembly Center in
Kansas City, Kansas, since 1993, where he was responsible for the manufacturing
launch of the redesigned Pontiac Grand Prix. Mr. Clarke served as Vice
President of Labor Relations since January 2001 and was appointed President and
Managing Director of GM de Mexico and served as its GM corporate Vice President
from 1998 to 2001. He served as the Director of manufacturing for GM de Mexico
since June 1997. He served as Director of GM de México's Ramos Arizpe complex
from 1990 to 1992 and as Production Manager for GM's metal fabricating plant in
Grand Rapids, Michigan, in 1987. He joined GM as a co-op student at Pontiac
Motor Division in Pontiac, Michigan.
Mr. Clarke remained at Pontiac for ten years, holding a series of
engineering and manufacturing assignments of increasing responsibility. He
serves as the Chairman of the Asia Pacific Strategy Board. He has been a
Director of Navistar International Corporation since April 15, 2013. He has
been a Director of Fuel Systems Solutions, Inc. since December 20, 2011. Mr.
Clarke is a Member of the Automotive Strategy Board. He serves as a Director of
the Alliance of Automobile Manufacturers. He serves on the board of directors
of the GM-Toyota NUMMI manufacturing joint venture in California. He is a
member of the University of Michigan Business School Advisory Council. He
served as a Director of Suzuki Motor Corp. Mr. Clarke served as a Director of
Fuji Heavy Industries Ltd.
He is GM's key executive to Cornell University and He received a
Bachelors degree in mechanical engineering from the General Motors Institute,
Kettering University in 1978 and a Masters degree in Business Administration
from the University of Michigan in 1982.
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. |
Delaware |
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International of Mexico Holding Corporation |
Delaware |
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Subsidiaries that are 100% owned by Navistar, Inc.: |
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Navistar Canada, Inc. |
Canada |
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Navistar Financial Corporation |
Delaware |
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IC Bus, LLC |
Arkansas |
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SST Truck Company, LLC |
Delaware |
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Navistar Defense, LLC |
Delaware |
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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 |
Cayman Islands |
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Navistar Mexico, S. de R.L. de C.V. (f/k/a Camiones y Motores
International de Mexico, S.A. de C.V.) |
Mexico |
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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) |
Brazil |
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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 |
Delaware |
On August 11, 2015, Navistar International completed refinancing of USD
697.5 million senior secured notes, due to mature in August 2017 and has
replaced its existing senior secured notes with a new USD 1.04 billion senior
secured term loan, which will mature in August 2020. Navistar also disclosed
that, upon the completion of the transaction, the maturity date of its USD 175
million asset-based lending (ABL) credit facility will be extended by one year
to May 2018. The refinancing will provide Navistar with additional liquidity
and financial flexibility and also extend its maturity of the term loan
facility.
On attachment:
- 10K 2013-214 (fiscal year ending October 2014)
- 3rd 10Q 2014-2015
The Company reports losses
Since 2011.
Banks: Bank of New York Mellon Trust
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 Illinois)