Navistar’s FY 2008 1 st & 2 nd Quarter Financial Results June 30, 2008 Exhibit 99.1 |
Safe Harbor Statement Information provided and statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this presentation and the company assumes no obligation to update the information included in this presentation. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties and assumptions. For a description of these factors, see Item 1A. Risk Factors of our Form 10-K for the fiscal year ended October 31, 2007, which was filed on May 29, 2008. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. 2 |
Other Cautionary Legends • The financial information herein contains both audited and unaudited and has been prepared by management in good faith and based on data currently available to the company. • Certain Non-GAAP measures are used in this presentation to assist the reader in understanding our core manufacturing business. We believe this information is useful and relevant to assess and measure the performance of our core manufacturing business as it illustrates manufacturing performance without regard to selected historical legacy costs (i.e. pension and other post-retirement costs) and other expenses that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. A reconciliation to the most appropriate GAAP number is included in the appendix of this presentation. 3 |
200,000 300,000 400,000 500,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Guidance Est. 2009 Traditional U.S. and Canada Retail Sales Class 6 – 8 Industry Landscape FY 2008 retail class 6-8 annualized using 1 Half information Navistar’s fiscal year is 11/1-10/31 4 Industry FY99 FY00 FY01 FY02 FY03 FY04 FY 05 FY06 FY 07 School Bus 33,800 33,900 27,900 27,400 29,200 26,200 26,800 28,200 24,500 20,000 24,000 Class 6-7 - Medium 126,000 129,600 96,000 72,700 74,900 99,200 104,600 110,400 88,500 63,000 70,000 Combined Class 8 (Heavy & Severe Service) 286,000 258,300 163,700 163,300 159,300 219,300 282,900 316,100 206,000 175,000 191,000 Total Industry Demand 445,800 421,800 287,600 263,400 263,400 344,700 414,300 454,700 319,000 258,000 285,000 FY 08 Guidance Actual st |
0 100,000 200,000 300,000 400,000 500,000 600,000 FY2006 FY2007 FY2008 Fcst 0 50,000 100,000 150,000 FY2006 FY2007 FY2008 Fcst 0 100,000 200,000 300,000 400,000 500,000 FY2006 FY2007 FY2008 Fcst 0 10,000 20,000 30,000 40,000 50,000 FY2006 FY2007 FY2008 Goal 30,000 2008 Guidance 520,000 405,000 350K – 375K U.S. & Canada Truck Industry (Class 6-8 Units) 455,000 319,000 258K – 285K Navistar Expansionary* Shipments 38,000 42,500 126,000 75,000 70K – 80K Charts reflects midpoint of guidance Navistar U.S. & Canada Shipments (Class 6-8 Units) Flat Navistar Engine Shipments *includes all military shipments 5 |
$0 $200 $400 $600 $800 $1,000 $1,200 FY2006 Full Year FY 2007 Full Year FY2008 1st Half FY 2008 Full Year 200,000 300,000 400,000 500,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Guidance Est. 2009 1 st Half FY 2008 – Actual vs. Guidance Manufacturing Segment Profit ($ in millions) Consolidated Revenues ($ in billions) Charts reflects midpoint of guidance $838 $426 $950-1,000 Retail Class 6 - 8 FY 2008 retail class 6-8 annualized through April Actual $424 Guidance $375-425 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 FY 2006 1st Half FY 2007 1st Half FY 2008 1st Half Actual $171 Guidance $120-200 $103 $6 Consolidated Pretax Income ($ in millions) 6 |
200,000 300,000 400,000 500,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Guidance Est. 2009 In Spite of Challenges…. Retail Class 6 - 8 FY 2008 retail class 6-8 annualized through April Strong 1 st Half $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 FY 2006 1st Half FY 2007 1st Half FY 2008 1st Half Actual $171 Guidance $120-200 $103 $6 Consolidated Pretax Income ($ in millions) Truck Some minor recovery but impact of Military, ProStar ® , etc. Engine Pick-up truck industry related volumes down Expansionary related volumes up Financial Services Accounting for derivatives Lower industry volume Lower spread Corporate Items Post retirement Professional fees Taxes 0 5,000 10,000 15,000 20,000 1Q08 2Q08 75,000 80,000 85,000 90,000 95,000 100,000 105,000 PBT ($42M) PBT $213M 7 range |
State of the Truck Industry Fuel efficient Products ProStar ® LoneStar ® MaxxForce FY 2007 Engines MaxxPower APU Diversification Military Mexico & Export Additional ROW opportunities Market Share opportunities Contract price locks Product value Fuel economy MaxxPower APU Durability Pricing Design Changes International’s MaxxPower Integrated APU ProStar™ Skyrise Military 8 |
Delivering On Our Commitments Manufacturing Segment Profit ($ in millions) Consolidated Revenues ($ in billions) 1 st Half 2008 Guidance Delivered • FY 2008 1 and 2 quarter 10-Q’s expected by end of June FY 2008 1 and 2 quarter 10-Q’s filed on 6/27/08 • $6.7B - $6.9B Total Revenue $6.9B Total Revenue • $375M - $425M Manufacturing Segment Profit $424M Manufacturing Segment Profit • $120M - $200M Consolidated PBT $171M Consolidated PBT $162M Net Income and $2.22EPS 9 *$1.6B based on assumption of US & Canada Class 6-8 Retail Industry of 414,000 st st nd nd |
Summary 2008 industry recovery delayed with economy 2008 will be a strong year for Navistar despite a weak U.S. and Canada industry Plans in place for 2009 targets-$15+ billion revenues with $1.6 billion Manufacturing Segment Profit Great Products Competitive Cost Structure Profitable Growth Growth in Export and Military Changing Diesel environment Sustainability 2010 and beyond 10 |
SEC Regulation G The above non-GAAP financial measures are unaudited and reflect a 2007 change in segment reporting methodology. This presentation is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations, to provide an additional measure of performance. 11 FY 2006 ($ Billions) FY 2007 ($ Billions) FY 2007 ($ Billions) FY 2008 ($ Billions) Revenues $14 $12 $6.1 $6.9 ($Millions) ($Millions) ($Millions) ($Millions) Manufacturing Segment Profit $838 $426 $1,000 $950 $208 $424 Corporate Items ($398) ($431) ($420) ($460) ($313) ($423) ($190) ($164) Interest Expense ($192) ($196) ($140) ($160) ($157) ($177) ($96) ($83) Financial Services Profit $147 $128 $70 $50 $140 $100 $84 ($6) Sub total - Below the line range: ($443) ($499) ($490) ($570) ($330) ($500) ($202) ($253) Consolidated Income Before Income Tax $395 ($73) $510 $380 $1,270 $1,100 $6 $171 Memo - Professional fees included above in corporate items: ($71) ($224) ($140) ($160) ($20) ($30) ($84) ($99) 1st Half SEC Regulation G FY 2008 ($ Billions) ($Millions) $15+ Full Year $1,600 $15+ FY 2009 ($ Billions) ($Millions) |