Navistar International (NAV) 10-Q 2008 Q2 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 Revenues and Expenses

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

		Three Months Ended April 30,					Six Months Ended April 30,
		2008		2007			2008			2007
(in millions)
Sales of manufactured products, net		$	3,853	$	2,900		$	6,713		$	5,950
Costs of products sold			3,196		2,472			5,647			5,077
Selling, general and administrative expenses			326		319			619			593
Engineering and product development costs			99		95			181			198
Other (income) expenses, net			38		61			89			160
Total costs and expenses			3,659		2,947			6,536			6,028
Income (loss) before income taxes	— Manufacturing operations		194		(47	)		177			(78	)
	— Financial services operations		19		28			(6	)		84
Income (loss) before income taxes			213		(19	)		171			6
Income tax benefit (expense)			2		(6	)		(9	)		(19	)
Net income (loss)		$	215	$	(25	)	$	162		$	(13	)

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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
	April 30, 2008			October 31, 2007
(in millions)
Cash and cash equivalents	$	591		$	716
Marketable securities		38			6
Accounts receivables		1,132			788
Inventories		1,316			1,380
Investments in and advances to financial services affiliates		368			397
Investments in and advances to non-consolidated affiliates		175			154
Property and equipment, net		1,884			1,980
Goodwill and intangible assets, net		632			639
Other assets		307			325
Deferred taxes, net		110			123
Total assets	$	6,553		$	6,508
Accounts payable	$	2,137		$	1,888
Postretirement benefits liabilities		1,218			1,310
Debt—manufacturing operations		1,913			2,028
Other liabilities		1,847			2,016
Stockholders’ deficit		(562	)		(734	)
Total liabilities and stockholders’ deficit	$	6,553		$	6,508

Condensed Statements of Cash Activities

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

	Six Months Ended April 30,
	2008			2007
(in millions)
Cash flow from operating activities:
Net income (loss)	$	162		$	(13	)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization		162			155
Depreciation of equipment held for or under lease		20			17
Deferred taxes		(2	)		24
Equity in loss (income) of financial services operations		6			(84	)
Equity in income of non-consolidated affiliates		(45	)		(40	)
Dividends from financial services operations		25			175
Dividends from non-consolidated affiliates		29			52
Other, net		(274	)		(549	)
Net cash provided by (used in) operating activities		83			(263	)
Cash flow from investing activities: Purchases of marketable securities		(42	)		(148	)
Sales or maturities of marketable securities		11			264
Net change in restricted cash and cash equivalents		5			(18	)
Capital expenditures		(101	)		(137	)
Purchase of equipment held for or under lease		(13	)		(8	)
Acquisitions, net of cash acquired		—			(7	)
Other investment activities		19			(7	)
Net cash used in investing activities		(121	)		(61	)
Net cash used in financing activities		(104	)		(218	)
Effect of exchange rate changes on cash and cash equivalents		17			28
Decrease in cash and cash equivalents		(125	)		(514	)
Cash and cash equivalents at beginning of the period		716			1,078
Cash and cash equivalents at end of the period	$	591		$	564

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