Navistar International (NAV) 10-Q 2008 Q1 Quarterly report

EXHIBIT 99.1

Additional Financial Information (Unaudited)

The following additional financial information is provided based upon the continuing interest of certain stockholders and creditors to assist them in understanding our core manufacturing business and as such, includes certain non-GAAP financial measures.

Condensed Statements of Operations

Navistar International Corporation (with financial services operations on a pre-tax equity basis)

	Three Months Ended January 31,
	2008			2007
(in millions)
Sales of manufactured products, net	$	2,860		$	3,050
Costs of products sold		2,451			2,605
Selling, general and administrative expenses		293			274
Engineering and product development costs		82			103
Other expenses, net		51			99
Total costs and expenses		2,877			3,081
Income (loss) before income taxes—Manufacturing operations		(17	)		(31	)
—Financial services operations		(25	)		56
Income (loss) before income taxes		(42	)		25
Income tax expense		(11	)		(13	)
Net income (loss)	$	(53	)	$	12

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Condensed Statements of Assets, Liabilities and Stockholders’ Deficit

Navistar International Corporation (with financial service operations on a pre-tax equity basis)

	As of
	January 31, 2008			October 31, 2007
(in millions)
Cash and cash equivalents	$	512		$	716
Marketable securities		21			6
Accounts receivables		640			788
Inventories		1,460			1,380
Investments in and advances to financial services affiliates		363			397
Investments in and advances to non-consolidated affiliates		168			154
Property and equipment, net		1,908			1,980
Goodwill and intangible assets, net		627			639
Other assets		286			325
Deferred taxes, net		112			123
Total assets	$	6,097		$	6,508
Accounts payable	$	1,875		$	1,888
Postretirement benefits liabilities		1,241			1,310
Debt—manufacturing operations		1,945			2,028
Other liabilities		1,838			2,016
Stockholders’ deficit		(802	)		(734	)
Total liabilities and stockholders’ deficit	$	6,097		$	6,508

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Condensed Statements of Cash Activities

Navistar International Corporation (with financial services operations on a pre-tax equity basis)

	Three Months Ended January 31,
	2008			2007
(in millions)
Cash flow from operating activities:
Net income (loss)	$	(53	)	$	12
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization		77			78
Depreciation of equipment held for or under lease		10			10
Deferred taxes		11			26
Equity in loss (income) of financial services operations		25			(56	)
Equity in income of non-consolidated affiliates		(24	)		(22	)
Dividends from financial services operations		15			—
Dividends from non-consolidated affiliates		12			28
Other, net		(163	)		(558	)
Net cash used in operating activities		(90	)		(482	)
Cash flow from investing activities:
Purchases of marketable securities		(25	)		(127	)
Sales or maturities of marketable securities		10			260
Net change in restricted cash and cash equivalents		2			(25	)
Capital expenditures		(36	)		(93	)
Purchase of equipment held for or under lease		(4	)		(6	)
Acquisitions, net of cash acquired		—			(7	)
Other investment activities		20			(3	)
Net cash used in investing activities		(33	)		(1	)
Net cash used in financing activities		(78	)		(281	)
Effect of exchange rate changes on cash and cash equivalents		(3	)		4
Decrease in cash and cash equivalents		(204	)		(760	)
Cash and cash equivalents at beginning of the period		716			1,078
Cash and cash equivalents at end of the period	$	512		$	318

E-9