Navistar International 8K Navistar Reports 3Q Profit; Announces Stock Repurchase | NAV 7 Sep 11

3rd Quarter 2011 Earnings Presentation

September 7, 2011

NYSE: NAV

Exhibit 99.2

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

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 of 1933, as

amended, Section

21E of the Securities Exchange Act of 1934, as amended, 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 further description of these factors, see Item

1A, Risk Factors,

included within our Form 10-K for the year ended October

31, 2010, which was filed on

December 21, 2010, and Part II, Item 1A, Risk Factors, included within our Form 10-Q for the period

ended July 31, 2011, which was filed on September 7, 2011.

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. All future written and oral forward-looking statements by us or

persons acting on our behalf are expressly qualified in their entirety by the cautionary statements

contained or referred to above. Except for our ongoing obligations to disclose material information as

required by the federal securities laws, we do not have any obligations or intention to release publicly

any revisions to any forward-looking statements to reflect events or circumstances in the future or to

reflect the occurrence of unanticipated events.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Other Cautionary Notes

•

The financial information herein contains audited and unaudited

information 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.

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 postretirement costs).

It also excludes financial services and other items that may not

related to the core manufacturing business or underlying results.

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.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Agenda

•

Current truck environment

•

quarter

results

•

Progress to longer term

strategy and shareholder

value

•

Balance sheet and return

on capital

Leveraging Assets/Controlling Destiny

2011 Industry Status

Class 8 Age of Fleet

Retail Sales

Source: ACT

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Industry

School Bus

18,000

15,000

18,000

Class 6-7 -

Medium

52,500

58,000

60,000

67,000

Combined

Class

(Heavy

Severe

Service)

171,000

184,000

165,000

175,000

Total Industry Demand

240,000

260,000

240,000

260,000

FY 2012 Preliminary Guidance

275,000

310,000

FY 11

Industry Projection

United

States

and

Canadian

Class

6-8

Truck

Industry

Retail

Sales

Volume

Original Guidance

As shown 08/10/11

100,000

200,000

300,000

400,000

500,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

U.S. and Canada Class 6-8 Retail Industry

6.0

16,500

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Freight and Trucking Update

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Used Truck Environment

5 Year Old Sleeper -

Retail

•

Used truck market devalued as

much as 50% in 2008/2009

•

Today –

Recovery has collected

nearly 100% of the devaluation

•

ProStar

–

Spec for Spec

commands highest residual value in

its class

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

2004

2005

2006

2007

2008

2009

2010

2011

Retail

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Supplier Constraints –

Rate of Change

•

Retail Sales

•

Other markets

Latin America truck shipments

~3,000 in 2010

~11,000 in 2011

Mexico industry

South America

Class 6-8

Retail Sales

FY 2010

Q1 2011

Q2-Q4 2011

Actual/Expected

194K

52K

~200K

Annualized

208K

~264K

Industry rate of

change: up ~30% in 2

half of year

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Status of Industry Commodity Cost

Note:

Costs related to steel, precious metals, resins, and

petroleum products

Commodities

Market Profile

2009

Average

2010

High

March 11

(data shown in Q1)

July 2011

Sheet steel

($/short ton)

$482

$699

$861

$713

Scrap steel

($/long ton)

$260

$473

$480

$510

Crude oil

($/bbl)

$62

$91

$95

$98

Platinum

($/troy oz.)

$1,203

$1,754

$1,829

$1,760

Natural

Rubber

($/lb)

$0.82

$2.25

$2.34

$2.07

Copper

($/lb)

$2.41

$4.23

$4.55

$4.46

2011 Actions

•

Navistar has mitigated a

significant portion of 2011 market

risk

Systematic hedging

Supplier negotiations

Commodity surcharges

•

Within a range, commodity

volatility has been factored into

2011 guidance

•

Focus on FY2012

•

Pricing Actions

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Trucking Industry Environment Summary

•

2011 Sales as expected

•

Supplier constraints

Limit Class 8

Costly

Short term

•

Medium growth slowed pending

economy

•

Opportunity –

highway bill

•

Commodity cost –

high but stable

NYSE: NAV

Quarter 2011 Earnings Call

Sept. 7, 2011

Q3 Financials & Operational Information

Note: This slide contains non-GAAP information; please see the

REG G in appendix for a detailed reconciliation.

Key Takeaways for Q3

•

Revenue increase

•

Product development* Q3 2011 was $132M compared to $113M in

Q3 2010

•

Inventory –

higher due to parts shortages/rate of production change

•

Production of big bore ~800 per week

FY 2011

Q3 2010

2011

Change

Truck Chargeouts

20,600

28,900

8,300

Revenue ($Billions)

$3.2

$3.5

$0.3

Adj. Mfg. Segment

Profit ($Millions)

$268

$158

($110)

Adj. Diluted EPS

Attributable to NIC**

$1.44

$0.79

($0.65)

Weighted average

shares outstanding

(Diluted)

74.3

76.8

2.5

Quarterly Adjusted Diluted Earnings

Per Share

Revenue –

Q3 ‘11 over Q3 ‘10

U.S. & Canada Truck

~$500M

Military

~($500)M

Global Truck

~$150M

Engine

~$100M

Parts

~$75M

Total

~$325M

*Excludes engineering integration costs, restructuring of North

American manufacturing operations, and impact of release of

portion of income tax valuation allowance

**Excludes impact of Ford restructuring and related charges

(benefits).

$1.44

$0.79

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Q3 2010

Q3 2011

Recovery of commercial truck volume

Military – full year on track, expect higher Q4 revenue

Strengthen global legacy business

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

14,900

20,100

5,700

8,800

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q3 2010

Q3 2011

Traditional

Expansionary

$785

$272

$49

$68

$100

$200

$300

$400

$500

$600

$700

$800

$900

Q3 2010

Q3 2011

Truck

Parts

19,300

26,000

33,600

38,200

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Q3 2010

Q3 2011

All Other

OEM Sales South America

Q3 Financials & Operational Information

Consolidated Revenues

($ in millions)

Quarterly Truck Chargeouts

Quarterly Engine Shipments

Military Revenues

($ in millions)

$834

$340

52,900

64,200

20,600

28,900

$3,221

$3,537

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Q3 2010

Q3 2011

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Medium

Truck

Great Products –

Market Share

Severe Service

Truck

Heavy

Truck

Class 8

School

Bus

(U.S. & Canada)

School

Bus

Combined

Class

6-8

Market

–

FY09:

36%;

FY10:

34%;

YTD11:

27%

21% Market Share

Q311

FY09

FY10

Q311

YTD11

61%

59%

47%

48%

FY09

FY10

Q311

YTD11

35%

38%

46%

40%

43%

40%

36%

34%

FY09

FY10

Q311

YTD11

FY09

FY10

Q311

YTD11

25%

24%

17%

Class 4-5

Industry

Navistar

Market Share

YTD11

26K

~4%

As of Q3 2011 we have changed the methodology of how traditional units are categorized

and prior periods have been restated. We now define our “traditional” markets to include

U.S. and Canada School bus and Class 6 through 8 medium and heavy truck. We classify

militarized commercial vehicles sold to the U.S. and Canadian militaries as Class 8 severe

service within our “traditional” markets for consistency with industry reporting. Additionally,

bus industry may include some of our competitors’ commercial and RV chassis, which we

exclude.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Great Products –

Growing Market Share

with Increased Customer Experience

(U.S. & Canada)

Class 6-7

Combined Class 8

10%

20%

30%

40%

50%

60%

Nov-

Mar

Apr-

Jul

Nov-

Mar

Apr-

Jul

19%

22%

35%

44%

•

Convert

proprietary

U.S.

and

Canada

diesel

engine

•

Transition industry

from 15L to 13L

•

Customer

experience during

transition will drive

increased second

half momentum

Class 8 Strategy

What We’ve

Said

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Continue to Broaden Product Offering

Severe Service

Heavy

ProStar

with

MaxxForce

Sloped Nose WorkStar

MaxxForce

11/13

PayStar

with

MaxxForce

LoneStar

with

500HP MaxxForce

9900 with

MaxxForce

CAT CT660

Combined

Class 8

Available now

Expected Q1 2012

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Heavy Duty Recognition

MaxxForce

Wins Best

Class 8 Heavy Duty Engine

“MaxxForce

engines rank

highest in customer

….

perform

particularly

well in four of eight factors: engine

reliability and dependability, engine

warranty, vibration at idle and

average fuel economy.”

JDPA

Press Release, 9/1/11

Best Class 8 Truck,

Pick Up & Delivery

International

brand trucks rank

highest in customer satisfaction

Scoring highest in all six categories

measured:

–

Engine

–

Cost of Operation

–

Warranty

–

Cab and Body

–

Ride/Handling/Braking

–

Transmission

satisfaction

The J.D. power and Associates 2011 U.S. heavy-Duty Truck Engine and Transmission Study

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Used Truck Environment

5 Year Old Sleeper -

Retail

Independent Value Guides –

2009 Model Year

$56,500

$57,000

$57,500

$58,000

$58,500

$59,000

$59,500

$60,000

$60,500

$61,000

$61,500

International

ProStar

Competitor A

Competitor B

Competitor C

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

2004

2005

2006

2007

2008

2009

2010

2011

Retail

•

Used truck market devalued as much as

50% in 2008/2009

•

Today –

Recovery has collected nearly

100% of the devaluation

•

ProStar

–

Spec for Spec commands

highest residual value in its class

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

•

$5.00 -

$6.00 adjusted EPS

•

Q4 2011 –

Revenue up ~$1B

–

Revenue

North America Truck chargeouts

up 30% Q4 2011 over Q3 2011

Latin America increases ~200%

Military will be ~$700 million

–

Cost

JV investments down

Manufacturing in place

Supplier constraints

Full production rate of Big Bore

engine

–

Manufacturing segment profit

Assumptions for 4Q 2011

FY 2011

July YTD

Full Year

Guidance

Truck Industry Units

182,500

240K –

260K

Revenue ($Billions)

$9.6

$13.6 –

$14.1

Adj. Diluted EPS

Attributable to NIC*

$2.01

$5.00 –

$6.00

Weighted average shares

outstanding (Diluted)

77.1

77.6

*Excludes

2011 Engineering Integration costs, valuation

allowance release and manufacturing footprint rationalization

costs.

Note: Guidance based off 77.6M shares

FY 2011 EPS Drivers:

Supplier constraints

(-)

Customer mix/Fleets

(-)

Product development

(-)

Manufacturing segment profit change

~($100)M

Financial services

Annual incentive compensation

Corporate items

~$100M+

Adj. Diluted EPS Attributable to NIC

$5.00 -

$6.00

Note: This slide contains non-GAAP information; please see the REG

G in appendix for a detailed reconciliation. 2011 FY Guidance

does not include engineering integration costs, restructuring of

N.A. manufacturing operations, or income tax valuation

allowance release.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Maximize Profit While Protecting Markets

Balance needs of customers with supplier capacity

As reported on 6/7/2011

in Q2 presentation:

Updated

Outlook:

Combined

Class 8

FY2011

Revised FY2011

Industry

171K -

184K

165K -

175K

Navistar

42K -

46K

38K -

40K

Market Share

~25%

~23% -

24%

Global Truck: Latin America & Caribbean

U.S. and Canada Combined Class 8 Retail Sales

ProStar

TranStar

WorkStar

Mixer

10,000 –

11,500

3,000

5,000

2,000

4,000

6,000

8,000

10,000

12,000

FY 2010

FY 2011 YTD July

FY 2011 FCST

13.0%

18.6%

Market Share

YTD FY2010

YTD FY2011

(This represents retail deliveries)

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

•

Moving from focused facilities to

flexible manufacturing to minimize

logistics cost

•

School bus: All assembly in Tulsa

•

Huntsville: Ability to produce V8/I6/DT

engines on same line

•

Labor agreement

Competitive Cost Structure

Completed Actions

Next Steps to Increase Shareholder Value

•

Leveraging assets

•

Integrated Product Development Center

•

Announced restructuring of truck plants:

Chatham, Monaco & Workhorse

Approximately $200 Million Saved Since FY2009

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Differentiated Global Distribution

GLOBAL

YTD July

FY 2011

Equity/loss from non-

consolidated affiliates

($55M)

($10M-$15M)

($65M-$70M)

Total Global –

including legacy

business

Profitable

Currently 410 branded sales or service points

4 Quarter

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Parts Segment Information

(U.S., Canada, Mexico, excludes Military)

Parts

Segment

Three Months Ended July 31:

($ in millions)

2011

2010

$ change

% change

Total Sales

$516

$440

$76

17%

Segment

Profit

$70

$52

$18

35%

North American Parts Sales

Parts Financial Information

ProStar+

with

MaxxForce

LoneStar

with

MaxxForce

$500

$1,000

$1,500

$2,000

2009

2010

2011 Fcst

Navistar Defense

•

Era of efficiency -

government

will look to industry for:

•

Higher quality

•

Lower cost

•

Quicker development

•

Sustainment of existing vehicle

fleets will continue (increase)

2008

2009

2010

2011

> $2B

~$1.9B

School

Bus

Class 6

and 7

Combined

Class 8

Engines

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Humvee Recap

•

Recap supports a FY12

Light Tactical Vehicle fleet

decision

•

Program is complementary

to JLTV and MATV

Army: 60,000 units recap

potential beginning in FY13

USMC: 3,400 unit potential

beginning in FY13

JLTV –

Joint Light Tactical Vehicle

MATV –

MRAP (Mine Resistant Ambush Protection)

All-Terrain Vehicle

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

2011 Analyst Day

Today

2011

Business

Drivers

2011

Business

Drivers

•

Industry

recovering

(240K

–

260K)

•

Industry

(240K

–

260K)

Heavy

Class

6-7

•

Maintain

Market

–

Back-end

loaded

•

Maintain

Market

–

Back-end

loaded

•

Military

$1.5B

$2.0B

Revenue

•

Military –

~$1.9B Revenue

•

Global

Investing to profitable

•

“Total”

Global –

Profitable

•

15L Launch

•

15L

Launch

–

Launched

March

•

Engineering

Slightly up

•

Engineering

–

Slightly

•

Engine

segment

profitability

~$100M

(back end loaded)

•

Engine segment profitability -

(back end loaded)

•

Manufacturing segment margin ~ $1 B

•

Manufacturing segment margin less than $1B

•

Adjusted

EPS

$5.00

$6.00

•

Adjusted EPS -

$5.00 to $6.00

•

Manufacturing

Cash

$1.2B

$1.4B

•

Manufacturing Cash -

$1.2B -

$1.4B

2011

One-Time

Items

2011

One-Time

Items

•

Engineering Integration

•

Engineering

Integration

–

track

•

Manufacturing

•

Manufacturing

–

Chatham,

Monaco

and

Workhorse

•

Valuation Allowance

•

Valuation Allowance

What We Said:

Convert 15L to 13L

Convert all

customers to

proprietary engine

Implement EGR

Note: This slide contains non-GAAP information; please see the REG

G in appendix for a detailed reconciliation. 2011 FY Guidance

does not include engineering integration costs, restructuring of

N.A. manufacturing operations, or income tax valuation

allowance release.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

A. J. Cederoth –

EVP & CFO

Leveraging Assets/Controlling Destiny

•

Q3 Balance Sheet

•

Capital Structure

•

Summary

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Manufacturing Cash Update

•

Q3 manufacturing cash=

$1,013M driven by EBITDA &

Working Capital

–

Q3 2010 $757M

•

Cash balance forecasted to grow

in Q4

–

Improved EBITDA

–

Working Capital

Cash Messages

Manufacturing

Cash

–

Only

Full Year Cash Guidance: $1.2B-$1.4B

($ millions)

Consolidated Net Income - Q3 Only

1,400

Subtract: VA/Taxes

(1,463)

Subtract: Income from Financial Services

(30)

Add back: Restructuring of N.A. MFG Operations

122

Add back: Depreciation/Amortization

Add back: Interest

Adjusted MFG EBITDA - Q3 Only

143

Change in Net Working Capital

(9)

Capital Expenditures

(106)

Intercompany & Other

(94)

Net Cash Flow - Q3 Only

(66)

Beginning MFG Cash Balance - April 30, 2011

1,079

Ending MFG Cash Balance - July 31, 2011

1,013

Note: This slide contains non-GAAP information; please see the

REG G in appendix for a detailed reconciliation.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$10

$15

$20

$25

$30

$35

Loss

Loss Percentage

Navistar Financial –

Optimizing ROIC

•

Financial services segment profit

Q3 2011: $30M

July YTD 2011: $102M

•

Liquidity is strong: $622M total availability

as of 7/31/11

Variable funding facility for dealer financing

renewed to July 2012

•

Service leverage improving (5:1)

*Repo amounts equal loan value at time of repossession. Jul’11 YTD

is annualized. NFC U. S. only.

Historical Portfolio Performance*

**Losses & Percentages are rolling 12 months. NFC U. S. only.

Return on Capital

Loss on Receivables**

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

$20

$40

$60

$80

$100

$120

$140

$160

$180

Repossessions

Past Due Percentage

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

2008

2009

2010

2011 Q3

Serviced Assets

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Manufacturing Strategy

~$200M saved since FY 2009

•

Chatham

–

GAAP charges of $85M to $125M, cash charges of $70M to $81M

–

Lowers future cost by additional $5M to10M per year

•

Custom Products –

Chassis/RV business

–

GAAP charges of $71M to $81M, cash charges of $11M to $21M

–

Consolidating –

efficiencies across business lines

–

Streamlining cost structure/leverage existing facilities

–

Lowers

future

cost

$15M

annually

•

Evaluate opportunities as strategy continues to evolve

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Valuation Allowance Release

•

2008-2010 profits at bottom of

cycle

–

Progress toward our strategic

objectives (FY11)

•

$1.5B increase in

shareholder’s equity

–

Positive shareholder equity

•

Low cash tax rate through

2013/2014

Note: This slide contains non-GAAP information; please see the REG G in

appendix for a detailed reconciliation. 2008 and 2009 excluded certain

charges, 2011 FY Guidance does not include engineering integration costs,

restructuring of N.A. manufacturing operations, or income tax valuation

allowance release.

100,000

200,000

300,000

400,000

500,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

U.S. and Canada Class 6-8 Retail Industry

$(5.00)

$5.00

$10.00

$15.00

$20.00

$25.00

150

200

250

300

350

400

450

500

Traditional Industry Volume (Thousands of Units)

Original segment profit goal assumed a share count of

72.5M shares and a tax rate of 25% .

2009

Actual

2010

Actual

2008

Actual

Original $1.6B Segment

Profit Goal @ 415k units

$1.8B Segment Profit

Goal

@ 350k

units

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Capital Structure

Leveraging Assets/Controlling Destiny

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Investing in the Strategy

At $15 to $20+ Billion Company

(Normal Industry)

At $7 to $8 Billion Company

Total (‘01 –

’05)

$1,423M

Total (‘06 –

’10)

$1,103M

*Capital expenditures excluding equity investments

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

$175M share repurchase program to be initiated

and executed over the upcoming months

Capital Structure Actions

•

Expand strategic focus ...

from primarily Investing

to also

Returning

Value

our

shareholders

•

Using excess liquidity to:

–

Improve shareholder returns

–

Manage long-term liabilities

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Assumptions for 4Q 2011

FY 2011

July YTD

Full Year

Guidance

Truck Industry Units

182,500

240K –

260K

Revenue ($Billions)

$9.6

$13.6 –

$14.1

Adj. Diluted EPS

Attributable to NIC*

$2.01

$5.00 –

$6.00

Weighted average shares

outstanding (Diluted)

77.1

77.6

*Excludes

2011 Engineering Integration costs, valuation

allowance release and manufacturing footprint rationalization

costs.

Note: Guidance based off 77.6M shares

FY 2011 EPS Drivers:

Supplier constraints

(-)

Customer mix/Fleets

(-)

Product development

(-)

Manufacturing segment profit change

~($100)M

Financial services

Annual incentive compensation

Corporate items

~$100M+

Adj. Diluted EPS Attributable to NIC

$5.00 -

$6.00

Note: This slide contains non-GAAP information; please see the REG

G in appendix for a detailed reconciliation. 2011 FY Guidance

does not include engineering integration costs, restructuring of

N.A. manufacturing operations, or income tax valuation

allowance release.

•

$5.00 -

$6.00 adjusted EPS

•

Q4 2011 –

Revenue up ~$1B

–

Revenue

North America Truck chargeouts

up 30% Q4 2011 over Q3 2011

Latin America increases ~200%

Military will be ~$700 million

–

Cost

JV investments down

Manufacturing in place

Supplier constraints

Full production rate of Big Bore

engine

–

Manufacturing segment profit

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Positioned to Succeed

2010

2011

2012

2013+

N. A. Truck

•

Industry

low

•

Investing in

integration

•

Industry low

•

Focus on

product

acceptance

•

Industry

recovery

•

Derivative

products

Continuous

improvement

Military

~$2.0B

~$1.9B

$1.5 to $2.0B with possible

next level of breakthrough

Expansionary

Global

Investment

Breakeven

Profitable

Continuous

growth

Diesel

Engines

•

Transition

away from

Ford

•

Focus on

emissions

Investing in

products and

markets

Leveraging core investments

to capture growth opportunities

Parts

Effective

growth

strategy

•

Improving

channel

execution

Realize benefits of Truck and

Engine strategy

2011 Revenues

Diversified Mfg. Revenue

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Driving Shareholder Value

$(5.00)

$5.00

$10.00

$15.00

$20.00

$25.00

150

200

250

300

350

400

450

500

2009

Actual

2010

Actual

2008

Actual

Original $1.6B Segment

Profit Goal

@ 415kunits

$1.8B Segment Profit

Goal

@ 350k

units

2011 Results

•

Differentiation

and

leadership

•

Deliver

customer

value

Fuel economy with EGR

Convert 15L to 13L

•

Focus

cost

structure

Flexible manufacturing

Integrated product development

•

Invest

global

growth

•

Adjusted

EPS

($5.00

$6.00)

2012

and

Future

•

Differentiated product offering

•

Strong core North America business

•

Sustainable

military

business

–

$1.5B

$2.0B

Revenue

•

Growing global truck

•

Expanded engine and parts business

Note: This slide contains non-GAAP information; please see the REG G in

appendix for a detailed reconciliation. 2008 and 2009 excluded certain

charges, 2011 FY Guidance does not include engineering integration costs,

restructuring of N.A. manufacturing operations, or income tax valuation

allowance release.

Traditional Industry Volume (Thousands of Units)

Original

segment

profit

goal

assumed

count

72.5M shares and a tax rate of 25% .

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Appendix

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Navistar Financial Corporation

•

Q3 2011 profitability of $30M, YTD profitability of $102M

•

Liquidity is strong: $622M total availability as of 7/31/11

Variable funding facility for dealer financing renewed to July 2012

•

Retail portfolio originations and balances will continue to decline as Navistar Capital (new

GE Capital program) handles new acquisitions

•

Service leverage improving (5:1)

Note: Profitability relates to total financial services

Leveraging Assets & Controlling Our Destiny

•

$809M facility

–

Funding for retail notes,

wholesale notes, retail

accounts, and dealer open

accounts

–

Matures December 2012

On balance sheet

•

Situation as of July 31, 2011

–

$1.1B funding facility (NFSC)

–

$390M available

•

NFSC wholesale trust

–

Variable portion matures July

2012

–

Public portions mature

January 2012 and October

2012

On balance sheet

•

Broader product offering

•

Enhanced ability to support

large fleets

•

Better access to less

expensive capital

Retail Notes

Bank Facility

Dealer Floor Plan

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

2011 Guidance

* FY2010 includes $10M ($0.14) of cost for UAW agreement.

Note: This slide contains non-GAAP information; please see the REG

G in appendix for a detailed reconciliation. 2011 FY Guidance

does not include engineering integration costs, restructuring of

N.A. manufacturing operations, or income tax valuation

allowance release.

Truck Industry Units

191,300

240,000

260,000

Revenue

($ Billions)

$12.1

$13.6

$14.1

($ Millions (excluding EPS))

Adj. Mfg. Segment Profit

$741

$850

$950

Fin. Services, Corporate, Elims

$(496)

$(420)

$(425)

Adj. Profit Excluding Tax

$246

$430

$525

Adj. Net Income attributable to NIC

$223

$388

$465

Adj. Tax Rate

9.4%

10%

11%

Adj. Diluted EPS attributable to NIC

$3.05*

$5.00

$6.00

Number of diluted shares

73.2M

~77.6M

Cash

($ Billions)

$1.1

$1.2 to $1.4

2010 Actual Guidance

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Market Share –

U.S. & Canada School Bus and Class 6-8

Traditional Market Share

Full Year

YTD

School buses

56%

60%

63%

64%

61%

60%

61%

53%

60%

59%

51%

45%

47%

48%

Class 6 and 7 medium trucks

30%

39%

33%

39%

35%

33%

44%

36%

37%

38%

36%

46%

40%

Class 8 heavy trucks

24%

29%

24%

25%

23%

22%

30%

20%

24%

17%

16%

17%

Class 8 severe service trucks

40%

46%

41%

47%

43%

40%

39%

40%

33%

32%

36%

34%

Combined Class 8

29%

32%

33%

32%

31%

28%

32%

25%

28%

20%

19%

21%

20%

Total Traditional Market Share

32%

37%

38%

36%

32%

35%

32%

34%

27%

26%

29%

27%

2011

Market Share - U.S. & Canada School Bus and Class 6-8

2010

2009

As of Q3 2011 we have changed the methodology of how traditional units are categorized

and prior periods have been restated. We now define our “traditional” markets to include

U.S. and Canada School bus and Class 6 through 8 medium and heavy truck. We classify

militarized commercial vehicles sold to the U.S. and Canadian militaries as Class 8 severe

service within our “traditional” markets for consistency with industry reporting. Additionally,

bus industry may include some of our competitors’ commercial and RV chassis, which we

exclude.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Worldwide Truck Chargeouts

FISCAL YEAR 2009

YTD

BUS

2,700

3,100

3,400

4,600

13,800

MEDIUM

3,200

3,300

2,700

3,800

13,000

HEAVY

6,100

3,300

4,500

5,200

19,100

SEVERE

4,200

4,400

3,900

4,700

17,200

TOTAL

16,200

14,100

14,500

18,300

63,100

NON-TRADITIONAL MILITARY

1,100

400

100

1,600

EXPANSIONARY

2,400

1,900

2,500

4,300

11,100

WORLD WIDE TRUCK

19,700

16,400

17,000

22,700

75,800

FISCAL YEAR 2010

YTD

BUS

3,100

3,000

2,400

3,900

12,400

MEDIUM

3,900

5,300

3,900

5,400

18,500

HEAVY

5,200

4,600

6,400

5,400

21,600

SEVERE

3,900

3,800

2,200

4,100

14,000

TOTAL

16,100

16,700

14,900

18,800

66,500

NON-TRADITIONAL MILITARY

100

200

1,000

100

1,400

EXPANSIONARY

3,900

4,500

4,700

6,000

19,100

WORLD WIDE TRUCK

20,100

21,400

20,600

24,900

87,000

FISCAL YEAR 2011

YTD

BUS

2,100

2,000

2,200

6,300

MEDIUM

4,600

7,200

7,400

19,200

HEAVY

4,700

5,200

6,800

16,700

SEVERE

2,700

3,200

3,700

9,600

TOTAL

14,100

17,600

20,100

51,800

NON-TRADITIONAL MILITARY

100

400

200

700

EXPANSIONARY

5,300

7,600

8,600

21,500

WORLD WIDE TRUCK

19,500

25,600

28,900

74,000

As of Q3 2011 we have changed the methodology of how traditional units

are categorized and prior periods have been restated. We now define our

“traditional” markets to include U.S. and Canada School bus and Class 6

through 8 medium and heavy truck. We classify militarized commercial

vehicles sold to the U.S. and Canadian militaries as Class 8 severe service

within our “traditional” markets for consistency with industry reporting.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

World Wide Engine Shipments

Navistar

YTD

OEM sales - South America

19,400

22,500

26,100

31,200

99,200

Ford sales - U.S. and Canada

12,600

26,400

22,900

39,600

101,500

Other OEM sales

4,500

2,400

1,800

2,600

11,300

Intercompany sales

14,400

12,600

12,800

17,500

57,300

Total Shipments

50,900

63,900

63,600

90,900

269,300

Navistar

YTD

OEM sales - South America

30,700

34,600

33,600

33,900

132,800

Ford sales - U.S. and Canada

24,700

200

24,900

Other OEM sales

2,000

3,600

3,700

4,900

14,200

Intercompany sales

16,400

17,700

15,600

18,800

68,500

Total Shipments

73,800

56,100

52,900

57,600

240,400

Navistar

YTD

OEM sales - South America

27,200

37,100

38,200

102,500

Ford sales - U.S. and Canada

Other OEM sales

4,500

4,400

3,700

12,600

Intercompany sales

17,300

23,500

22,300

63,100

Total Shipments

49,000

65,000

64,200

178,200

2009

2010

2011

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Order Receipts –

U.S. & Canada

As of Q3 2011 we have changed the methodology of how traditional units

are categorized and prior periods have been restated. We now define our

“traditional” markets to include U.S. and Canada School bus and Class 6

through 8 medium and heavy truck. We classify militarized commercial

vehicles sold to the U.S. and Canadian militaries as Class 8 severe service

within our “traditional” markets for consistency with industry reporting.

Order Receipts: U.S. & Canada (Units)

Three Months Ended

Nine Months

Ended

July 31,

Percentage

July 31,

Percentage

2011

2010

Change

2011

2010

Change

"Traditional" Markets

School buses

2,700

1,100

1,600

145

6,300

4,600

1,700

Class 6 and 7 medium trucks

6,800

3,000

3,800

127

21,200

12,500

8,700

Class 8 heavy trucks

6,200

3,000

3,200

107

23,200

16,100

7,100

Class 8 severe service trucks

3,100

2,200

900

10,000

10,200

(200)

(2)

Total "Traditional" Markets

18,800

9,300

9,500

102

60,700

43,400

17,300

Combined Class 8 (Heavy and Severe Service)

9,300

5,200

4,100

33,200

26,300

6,900

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Supplemental Information -

Truck

Worldwide Truck Chargeouts

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Analyst Day

2011 Actuals

Analyst Day

2011 Actuals

Analyst Day

2011 Actuals

Analyst Day

Traditional

Expansionary

Towables

As of Q3 2011 we have changed the methodology of how traditional units

are categorized and prior periods have been restated. We now define our

“traditional” markets to include U.S. and Canada School bus and Class 6

through 8 medium and heavy truck. We classify militarized commercial

vehicles sold to the U.S. and Canadian militaries as Class 8 severe service

within our “traditional” markets for consistency with industry reporting.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

U.S. and Canada Dealer Stock Inventory*

*Includes U.S. and Canada Class 4-8 and school bus inventory, but does not include U.S. IC Bus or Workhorse Custom Chassis inventory.

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Frequently Asked Questions

Q1:

What is in your Dealcor debt?

Dealcor debt is comprised of wholesale (floor plan) financing and also retail financing on lease and rental fleets for company owned

dealers.

Q2:

How many Dealcor dealers did you have as of July 31, 2011?

Q3:

How are your dealers doing?

Q4:

What kind of rates do you charge your dealers and customers?

Q5:

How do you fund your wholesale business?

primarily

finance

our

wholesale

portfolio

through

traditional

private

public

securitizations,

and

through

our

bank

facility.

Q6:

How is your NFC portfolio performing?

our

272

primary

NAFTA

dealers,

have

ownership

interest

DealCor

dealers

July

31,

2011.

expect

further

reduce

our number of Dealcor dealers in 4Q 2011.

The

operational

and

financial

strength

our

industry

leading

dealer

network

continues

improve

all

areas

the

business,

parallel with the overall improvement in the North American truck market. We continue to add new dealers to the distribution network,

attracted by the breadth of our product lines and significant opportunities in major markets. Considerable investments in facility

upgrades

and

acquisitions

have

also

been

completed

the

last

several

months

aggressive

and

growth

oriented

existing

dealers;

further strengthening our footprint, service capabilities and accessibility to our customers.

Generally, our rates vary (those with higher credit risk have always had to pay higher interest rates) and are usually in line

with the market.

Repossessions,

past

due

accounts

and

losses

peaked

2008

and

have

continued

show

improvement

since

then.

NFC’s

retail

portfolio in the U.S. is expected to reduce significantly in size now that Navistar Capital, the new GE Capital retail program, is

financing

retail

customers.

Performance

this

portfolio

improved

considerably

2010

and

throughout

2011.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Frequently Asked Questions

Q7:

What is your total amount of capacity at NFC?

Total availability in our U.S. funding facilities is more than $622M as of July 31, 2011.

Q8:

What is the status of the retail financing alliance with GE Capital in the United States?

Navistar

Capital

–

the

alliance

formed

with

Capital

support

the

sale

Navistar

products

–

off

great

start

and

progressing consistent with expectations.

Q9:

What

included

Financial

Services

Segment

Profit,

Corporate

and

Eliminations?

Financial Services Segment Profit, Corporate and Eliminations, as presented, consist of the Finance Services segment and

Corporate and Eliminations as shown in the Segment Reporting footnote of our annual and quarterly reports (10K & 10Q). The

primary drivers of Corporate and Eliminations are Corporate SG&A, pension and OPEB expense excluding amounts allocated to

the segments, annual incentive, manufacturing interest expense, and the elimination of intercompany sales and profit between

segments.

Q10:

What is the status of the Humvee Recap program?

A final request for proposals is expected in the coming weeks. Navistar intends to respond. Requirements will address

vulnerabilities exposed during combat operations in Iraq and Afghanistan. The program will allow the vehicles to stay battle ready

until Joint Light Tactical Vehicles (JLTV) are fielded.

Q11:

How will the changing DOD budget affect Navistar in FY 2011?

Navistar continues to pursue a number of U.S. and foreign military opportunities and is confident in its annual $1.5 to $2 billion

revenue

goal.

addition,

the

company

now

has

than

32,000

vehicles

operation

throughout

the

world.

These

vehicles

will

require parts and sustainment support throughout their lifecycles.

Q12:

What are your margins for military vehicles?

We do not break margins out specific to our military vehicles. These numbers are reported as part of our Truck segment financials.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Frequently Asked Questions

Q13:

What is the current Joint Light Tactical Vehicle (JLTV) program status?

Navistar and BAE continue to participate in the JLTV program. Proposals for the Engineering and Manufacturing Development

(EMD) stage are expected in late FY2011. Two teams will then be selected to compete in the EMD phase.

Q14:

How does your Class 8 industry compare to ACT Research?

Q15:

What were the 2010 emissions requirements?

Through the use of credits manufacturers can go to a maximum of 0.50g NOx if they reduced earlier with advanced technology;

manufacturers

need

0.20g

NOx

they

chose

not

introduce

advanced

technologies

reduce

their

emissions

earlier.

For

many

years

Navistar

introduced

cleaner

emission

engines

than

the

EPA

required,

were

able

generate

some

credit

before

we needed to go to the 0.20g NOx standard.

Q16:

What is Navistar doing to meet the 0.20g NOx emissions when its credits are depleted?

Navistar

remains

committed

its

strategy

providing

solutions

that

let

customers

focus

their

business,

not

emissions

regulations.

Our

primary

path

continues

Advanced

EGR.

This

technology

proving

extremely

viable

providing

fuel

economy

and performance on par with the best SCR competitors. Customer acceptance is excellent with over 60,000 vehicles built at 0.5

grams

NOx

better.

develop

0.20g

NOx

capability

our

goal

continuing

improve

performance

and

fuel

economy

this

emissions

level

being

realized.

Reconciliation to ACT

2011

ACT*

205,700

CY to FY adjustment

(20,891)

Other misc. specialty vehicles Included in ACT

(8,500)

Total (ACT comparable Class 8 to Navistar)

176,309

Navistar Industry Retail Deliveries Combined Class 8 Trucks**

170,000**

Navistar difference from ACT:

6,309

3.6%

*Source: ACT N.A. Commercial Vehicle Outlook - Aug, 2011

**See table on bottom of slide 5

U.S. and Canadian Class 8 Truck Sales

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Frequently Asked Questions

Q17:

Why has the Company decided to release a significant portion of its domestic valuation allowance?

The Company has evaluated a variety of criteria, both objective and subjective, and has concluded that a significant portion of its

U.S. valuation allowance attributable to deferred tax assets should be released in Q3 based on its judgment that (on a more likely

than not basis) it will realize the value of these deferred tax assets in the future. That judgment considered, among other things, the

Company’s ability to deliver profitability in a depressed market, as well as its confidence in the future profitability of its U.S.

operations.

Q18:

What is the current balance of net operating losses as compared to other deferred tax assets?

The Company

has

U.S.

federal

net

operating

losses

(NOLs)

with

undiscounted

cash

value

totaling

$161

million as of

October 31, 2010.

In addition, it has state NOLs valued at $85 million and foreign NOLs valued at $85 million, for a total

undiscounted

cash

value

$331

million.

addition

NOLs,

the

Company

has

other

deferred

tax

assets

$1.5

billion

resulting in

total

deferred

tax

assets

approximately

$1.8

billion.

Q19:

How will the release of $1.5 billion of deferred tax valuation allowance impact future cash tax payments?

The release of $1.5 billion of valuation allowance will have no impact on U.S. cash tax payments. We expect to continue to take

advantage of NOLs and tax credits through 2013/2014.

Q20:

What is our expected tax rate in the future?

Our USGAAP tax rate in 2012 forward assumes a 30%+ effective tax rate. This may be impacted by discrete events (e.g.,

settlement of tax audits) or by future changes in tax legislation.

Q21:

How has recent tax legislation affected Navistar?

The Worker, Homeownership, and Business Assistance Act of 2009 provided an opportunity to carry back alternative minimum tax

net operating

losses

from

the

Company’s

2010

fiscal

year

and

receive

refund

alternative

minimum

tax

(AMT)

payments.

The

Company received its cash refund of $29 million of AMT credits in fiscal year 2011 as a result of this legislation.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extended current tax rules in several

areas, which if not

extended,

could

have

adversely

impacted

the

Company’s

tax

results.

addition,

the

Act

allows

businesses to

fully depreciate qualifying property purchased through the end of 2011 (50% first year depreciation for purchases in 2012), which

will benefit both Navistar and its customers.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Frequently Asked Questions

Q22:

How will $1.8 billion of deferred tax assets be used to offset future taxable income?

Simply put, deferred tax assets represent the value of future tax deductions attributable to items that have already been expensed

or deducted for book purposes.

The most commonly understood component of deferred tax assets is the value of our net operating

losses, which

will

serve

immediately

reduce

taxable

income

the

future.

addition,

have

several

other

major

components

of deferred

taxes

which

will

reduce

taxable

income

the

future.

For

example,

the

Company

has

accrued

significant OPEB,

pension

and

other

employee

benefit

expenses

during

prior

years

based

expected

payments

made

the

future.

these

payments are made, the Company will realize tax deductions to offset future taxable income.

Q23:

When do you expect to exhaust your NOLs and tax credits?

We will likely take advantage of NOLs and credits through 2013/2014.

Q24:

How does vertical integration of a big bore engine impact warranty?

With

the

transition

100%

MaxxForce

engines

will

assume

increased

responsibility

for

engine

warranty,

which

was

previously

absorbed

our

suppliers

and

reflected

our

material

costs.

The

impact

this

change

will

increase warranty expense

and decrease material costs.

Q25:

Why is your warranty expense higher year over year?

Our warranty costs have been higher than the respective prior year periods primarily as a result of increased intercompany

volumes

due

the

use

all

MaxxForce

engines

our

North

America

product

offering.

Through

the

first

three

quarters

2011,

we have seen favorable performance on our 2010 emission compliant engines compared to previous launches and expected

performance.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Frequently Asked Questions

Q26:

What are your expected 2011 and beyond pension funding requirements?

Current forecasts indicate that we may need to contribute approximately $133 million in 2011 to our US and Canadian pension

plans

(“the

Plan”).

Future

contributions

are

dependent

upon

number

factors,

principally

the

changes

values

plan

assets,

changes

interest

rates,

and

the

impact

any

funding

relief

currently

under

consideration.

currently

expect

that

from

2012

through 2014, the Company will be required to contribute at least $150 million per year to the Plan, depending on asset

performance and discount rates.

Q27:

What is your expected 2011 pension and OPEB GAAP expense?

Assuming no further containment actions and no further curtailment events, we anticipate 2011 pension and OPEB GAAP expense

will not exceed 2010 levels.

Q28:

What causes the variance between manufacturing cash interest payments and GAAP interest expense?

The main variance between cash and GAAP interest results from our manufacturing segment’s $1 billion of senior unsecured high

yield

notes

and

$570

million

senior

subordinated

convertible

notes.

result

this

issuance,

future

manufacturing

interest

expense will be higher than cash interest payments due to the amortization of debt issuance costs which are amortized over the life

of each note ($36 million), amortization of the original issue discount of the high yield notes ($37 million) and amortization of the

embedded

call

option

the

convertible

notes

($114

million).

The

timing

interest

payments

also

impacts

this

variance

quarterly basis, but not on a fiscal year basis.

Q29:

What are the $225 million of Recovery Zone Facility Bonds (RZFBs) Series 2010 due October 15, 2040 being used for?

are

using

the

proceeds

invest

our

product

development

strategy

and

our

consolidation.

Great

products

are

key

pillar

of our three pronged strategy. Streamlining and improving our product development processes will continue to provide competitive

advantages for us in the marketplace.

The funding from the RZFBs will allow us to consolidate many facilities into a new facility

and

make

necessary

renovations

that

facility.

Additionally

will

invest

existing

facility,

which

includes

investments

equipment and technology that will help us create and improve our product development process and thus shareholder value.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Frequently Asked Questions

Q30:

Why did you use Recovery Zone Facility Bond (RZFB) financing?

The

RZFBs

are

cost

effective,

long-term

form

capital

that

complementary

our

capital

structure.

The

bonds

have a

year

maturity

and

fixed

rate

coupon

6.50%

per

annum.

They

are

callable

par

any

time

after

years

(October

15,

2020).

Issuing

bonds

the

tax-exempt

market

gave

exposure

new

source

investors

that

wouldn’t

otherwise have access to if not for the RZFB program.

Q31:

What should we assume for capital expenditures in fiscal 2011?

plan

continue

capital

spending

within

the

traditionally

guided

range

$250

$350

million

for

products

and

development.

There

capital

spending

Engineering

Integration

not

included

the

range

that

funded

through

the RZFBs.

Q32:

What are the differences between the accounting vs. economic dilution on your convertible debt?

Please

see

the

presentation

the

website

(http://ir.navistar.com/dilution.cfm)

entitled

Dilution

overview

resulting

from

the Convertible Notes issued on October 2009.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Frequently Asked Questions

Q33:

Why are the convertible debt holders no longer able to convert their notes?

The

indenture

our

convertible

notes

contains

provision

that

allows

the

note

holders

convert

anytime

during

the

following

fiscal quarter should the price of Navistar’s common stock close 130% above the conversion price for any 20 day period

(consecutive or non-consecutive) out of the last 30 consecutive day trading period of each fiscal quarter. Our fiscal second

quarter ended on April 30, 2011; the conversion price of the notes is $50.274 per share of Navistar’s common stock; 130% of the

conversion price equals $65.356 per share of Navistar’s common stock. Since Navistar’s common stock closed above $65.356

per share for more than 20 trading days during the 30 consecutive trading day period ending on April 30, 2011, the note holders

had the right to convert their notes any time from May 2, 2011 through July 31, 2011.

A very small minority of note holders chose to convert their notes during the conversion period. Navistar has opted to settle the

conversion in cash instead of shares, therefore there is a 40 trading day observation period to determine the value that will be

remitted in cash, so the note holders will not receive the cash for almost two months after their respective conversion notices

were received.

So far during the various 40 trading day observation periods, Navistar’s share price has traded at an average

price well below the conversion price of $50.27, therefore the note holders will receive less than the $1,000 par value per note. If

the average of Navistar’s share price during the 40 trading day observation period continues to trade below $50.27, Navistar will

retire the debt at less than the issuance price and record a gain on the extinguishment of debt in the fourth quarter (however, this

gain

will

somewhat

offset

the

acceleration

certain

debt

issuance

costs

that

had

previously

been

amortized

over

the

life

of the notes).

Navistar’s common stock did not close above $65.356 per share for any 20 day trading period (consecutive or non-consecutive)

during

the

day

consecutive

trading

day

period

ending

July

31,

2011,

therefore

the

note

holders

longer

have

the

right

convert their notes, however that threshold could be triggered once again in the future.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Frequently Asked Questions

Q34:

Why

have

the

convertible

notes

that

are

due

October

2014

been

reclassified

from

current

debt

long-term

debt?

mentioned

the

question

above,

the

convertible

note

holders

had

the

right

convert

their

notes

through

July

31,

2011.

Under

GAAP, since note holders had the right to convert, the debt was required to be classified as a current liability in the second

quarter.

Since the threshold mentioned in the above question was not triggered in the third quarter ending July 31, 2011, the notes

no longer became convertible after July 31, 2011, therefore the notes were reclassified from current to long-term debt.

Q35:

What is happening with the EPA lawsuit?

We presently have two lawsuits filed against the EPA calling into question the validity of the EPA certification of SCR systems due

to the fact that they can operate at much higher emissions levels in the real world than is recorded in their test cell results submitted

for certification.

Q36:

Are you ready for the 2013 GHG regulation?

Yes, Navistar will be ready to meet the standards when they go into effect January 2014. As a leader in fuel efficiency and in

delivering innovative technologies, such as hybrids, plug-in hybrids and electric vehicles, our current approach is to consistently

deliver the most fuel-efficient vehicles to our customers. Our customer-focused approach aligns Navistar with the intent of the new

proposed GHG rule, and provides us with a strong basis for meeting the new standards.

Q37:

How are you addressing the 2014 GHG regulations?

Navistar is currently conducting a more in-depth review of this complex rule to better understand the specific impacts (i.e., costs of

the

product,

how

will

implement

it,

etc.)

will

have

our

customers

and

the

operation

our

business.

such,

too

early

that review to provide specifics around how we will address the 2014 GHG regulations. What we can say is that Navistar is always

investing in new technologies designed to achieve maximum fuel economy for our customers. So these new GHG standards will not

change our standard way of operating our business.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

Outstanding Debt Balances

July

31,

2011

October 31,

2010

(in millions)

Manufacturing operations

8.25% Senior Notes, due 2021, net of unamortized discount of $33 million and $35 million at

the respective dates

967

965

3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $79

million and $94 million at the respective dates

491

476

Debt of majority-owned dealerships

109

Financing arrangements and capital lease obligations

123

221

Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040

225

Other

Total manufacturing operations debt

1,956

1,986

Less: Current portion

102

145

Net long-term manufacturing operations debt

1,854

1,841

Financial services operations

Asset-backed debt issued by consolidated SPEs, at variable rates, due serially through 2018

1,553

1,731

Bank revolvers, at fixed and variable rates, due dates from 2012 through 2018

876

974

Commercial paper, at variable rates, due serially through 2012

Borrowings secured by operating and finance leases, at various rates, due serially through

2017

112

Total financial services operations debt

2,599

2,884

Less: Current portion

652

487

Net long-term financial services operations debt

1,947

2,397

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

SEC Regulation G Non-GAAP

Reconciliation

We believe manufacturing segment results, which includes the segment results of our

Truck, Engine, and Parts reporting segments, provide meaningful information of our core manufacturing business 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 below reconciliation, and to provide an

additional measure of performance.

Manufacturing Segment Results:

The financial measures presented below are unaudited and not in accordance with, or an alternative for,

financial measures presented in accordance with 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.

We believe that adjusted net income, diluted earnings per share attributable to

Navistar International Corporation, and adjusted manufacturing segment profit excluding certain adjustments which are not

considered to be part of our ongoing business, improve the comparability of year to year results and are representative of our

underlying performance. 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 below reconciliations, and to provide an additional measure of performance.

Adjusted Net Income and Diluted Earnings Per Share Attributable To Navistar International Corporation and

Adjusted Manufacturing Segment Profit:

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

SEC Regulation G Non-GAAP

Reconciliation

Adjusted Manufacturing Earnings Before Interest, Income Taxes, Depreciation, and Amortization (“EBITDA”):

Adjusted manufacturing segment EBITDA is defined as our consolidated net income (loss) from continuing operations minus

the net income (loss) from our financial services operations plus interest expense, income taxes, and depreciation and

amortization, adjusted to exclude certain items that may not be related to the core manufacturing business. EBITDA is a

measure commonly used and is presented to aid in developing an understanding of the ability of our operations to generate

cash for debt service and taxes, as well as cash for investments

in working capital, capital expenditures, and other liquidity

needs. This information is presented as a supplement to the other data provided because it provides information which we

believe is useful to investors for additional analysis. EBITDA should not be considered in isolation or as a substitute for net

income, cash flows from operating activities or other consolidated operations, or cash flow statement data prepared in

accordance with GAAP, or as a measure of our profitability or liquidity as determined in accordance with GAAP.

Manufacturing Cash Flow and Manufacturing Cash, Cash Equivalents, and Marketable Securities:

Manufacturing

cash flow is used and is presented to aid in developing an understanding of the ability of our operations to generate cash for

debt service and taxes, as well as cash for investments in working capital, capital expenditures and other liquidity needs.

This information is presented as a supplement to the other data provided because it provides information which we believe is

useful to investors for additional analysis. Our manufacturing cash flow is prepared with manufacturing marketable securities

being treated as a cash equivalent. Manufacturing cash, cash equivalents, and marketable securities represents the

Company’s consolidated cash, cash equivalents, and marketable securities

excluding cash, cash equivalents, and

marketable securities of our financial services operations. We include marketable securities with our cash and cash

equivalents when assessing our liquidity position as our investments are highly liquid in nature. 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

below reconciliation, and to provide an additional measure of performance.

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

SEC Regulation G –

EPS vs. Traditional Industry

(A)

Revised

Target

sales

and

revenues,

net

–

Projections

based

$17-18B

GAAP

revenue

and

$2-3B

Non-GAAP

revenue

Navistar's

non-consolidated

affiliates.

Original

Target

Revised

Target

U.S. & Canada Industry

414,500

350,000

Sales and Revenues, Net

(A)

$15 +

$20 +

Diluted earnings per share attributable to Navistar International Corporation

$ 11.46

$ 12.31

Approximate diluted weighted shares outstanding

~ 72.5

(Dollars in Millions)

Net income (loss) attributable to Navistar International Corporation

$ 825

$ 892

Less: Financial services segment profit, Corporate and eliminations, and income taxes

(775)

(888)

Manufacturing segment profit

$ 1,600

$ 1,780

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

SEC Regulation G

Navistar International Corporation (Manufacturing operations with

financial services operations on a pre-tax equity basis)

Three Months Ended July 31, 2011

($ millions)

Net income (loss) attributable to NIC

$ 1,400

Less income tax benefit

(1,463)

Add back restructuring of N.A. MFG Operations

122

Income before income tax benefit and restructuring charges

$ 59

Less equity income from financial service operations

(30)

Income before income tax benefit, restructuring charges, and equity income from financial

service operations

$ 29

Add back manufacturing interest expense

Manufacturing EBIT

$ 67

Add back manufacturing depreciation and amortization

Adjusted manufacturing EBITDA

$ 143

Includes

depreciation

equipment

leased

others

and

excludes

debt

issuance

cost/discount

amortization

NYSE: NAV

3 Quarter 2011 Earnings Call

Sept. 7, 2011

SEC Regulation G –

2011 Guidance

(A)

Engineering integration costs relate to the

consolidation of our truck and engine engineering

operations as well as the move of our world

headquarters. We continue to develop plans for

efficient transitions related to these activities and

the optimization of our operations and

management structure. We expect to incur

approximately $77 million of engineering

integration costs in fiscal 2011 with approximately

$67 million of the costs to be recognized by our

manufacturing segment and approximately $10

million of corporate charges.

(B)

Restructuring of North American

manufacturing operations are charges primarily

related to our plans to close our Chatham, Ontario

heavy truck plant and Workhorse chassis plant in

Union City, Indiana, and to significantly scale back

operations at our Monaco recreational vehicle

headquarters and motor coach manufacturing

plant in Coburg, Oregon. We expect to incur $100

million to $140 million of restructuring, impairment

and related charges in fiscal 2011 with

approximately $3 million of corporate charges and

the remainder of the costs to be recognized by our

manufacturing segments.

(C)

In the third quarter of 2011, the Company

recognized an income tax benefit of $1.476 billion

from the release of a portion of our income tax

valuation allowance.

(D)

Adjusted income tax expense excludes the

income tax benefit from the release of a portion of

our income tax valuation allowance and

incremental income taxes that may result from this

partial release of the income tax valuation

allowance.

(E)

Approximate diluted weighted shares

outstanding based on assumed average share

price of $65 per share during the period.

Lower

Upper

(in millions, except per share data)

Net income attributable to Navistar International Corporation

1,647

1,764

Plus:

Engineering

integration

costs

(A)

Restructuring

North

American

manufacturing

operations

(B)

140

100

Less:

Income

tax

valuation

allowance

release

(C)

1,476

Adjusted net income attributable to Navistar International Corporation

$ 388

$ 465

Plus:

Adjusted

income

tax

expense

(D)

Adjusted Profit Excluding Tax

$ 430

$ 525

Diluted earnings per share attributable to Navistar International Corporation

$ 21.13

$ 22.13

Effect

adjustments

diluted

earnings

per

attributable

Navistar

International

Corporation

(16.13)

Adjusted diluted earnings per share attributable to Navistar International Corporation

$ 5.00

$ 6.00

Approximate

diluted

weighted

outstanding

(E)

77.6

Lower

Upper

(in millions)

Net income (loss) attributable to Navistar International Corporation

$ 1,647

$ 1,764

Less: Financial services segment profit, Corporate and eliminations, and income taxes

1,004

981

Manufacturing segment profit

643

783

Engineering

integration

costs

(A)

Restructuring

North

American

manufacturing

operations

(B)

137

100

Adjusted manufacturing segment profit

$ 847

$ 950

Fiscal 2011 guidance: adjusted net income and diluted earnings per share attributable to Navistar International

Corporation reconciliation:

Fiscal 2011 guidance: manufacturing segment profit and adjusted manufacturing segment profit reconciliation:

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

SEC Regulation G –

Fiscal Year Comparison

2009

2008

(Dollars in Millions, except per share data)

Net income (loss) attributable to Navistar International Corporation

$ 320

$ 134

Plus:

Ford

settlement,

restructuring

and

charges

(benefits)

(A)

(157)

Impairment

property,

plant,

and

equipment

(B)

358

Write-off

debt

issuance

costs

(C)

Adjusted net income attributable to Navistar International Corporation

$ 205

$ 528

Adjusted diluted earnings per share attributable to Navistar International Corporation

$ 2.86

$ 7.21

Diluted weighted shares outstanding

71.8

73.2

2010

2009

2008

(Dollars in Millions, except per share data)

Net income attributable to Navistar International Corporation

$ 223

$ 320

$ 134

Less: Income taxes

(23)

(37)

(57)

Profit Excluding Tax

$ 246

$ 357

$ 191

Less:

Financial services segment profit (loss)

(24)

Corporate and eliminations

(590)

(519)

(478)

Manufacturing segment profit

741

836

693

Plus:

Fordsettlement,

restructuring

and

charges

(benefits)

(A)

(160)

Impairment

property,

plant,

and

equipment

(B)

358

Adjusted manufacturing segment profit

$ 741

$ 707

$ 1,088

Adjusted net income and diluted earnings per share attributable to Navistar International Corporation reconciliation:

Manufacturing segment profit and adjusted manufacturing segment profit reconciliation:

(A)

Ford settlement, restructuring and related charges (benefits) include the impact of our settlement with Ford in 2009 as well as charges and benefits recognized related to

restructuring activity at our Indianapolis Casting Corporation and Indianapolis Engine Plant. The charges and benefits were recognized in our Engine segment with the

exception of $3 million of income tax expense and $1 million of income tax benefit related to the settlement in 2009 and 2008 respectively.

(B)

Impairment of property, plant, and equipment in 2008 are related to impairments to the asset groups in the Engine segment’s VEE Business Unit. The 2009 impairments

relate to charges recognized by the Truck segment for impairments related to asset groups at our Chatham and Conway facilities

(C)

The write-off of debt issuance costs in 2009 relate to charges related to the Company’s refinancing.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

Manufacturing marketable securities

SEC Regulation G –

Manufacturing Cash Fiscal Year Comparison

Manufacturing cash, cash equivalents, and marketable securities reconciliation:

(Dollars in Millions)

July 31, 2011

October 31,

2010

October 31,

2009

October 31,

2008

Manufacturing segment cash and cash equivalents

$ 413

$ 534

$ 1,152

$ 775

Financial services segment cash and cash equivalents

Consolidated cash and cash equivalents

$ 444

$ 585

$ 1,212

$ 861

$ 600

$ 566

$ -

$ 2

Financial services segment marketable securities

Consolidated marketale securities

$ 620

$ 586

$ -

$ 2

Manufacturing segment cash and cash equivalents

$ 413

$ 534

$ 1,152

$ 775

Manfuacturing marketable securities

600

566

Manufacturing segment cash, cash equivalents and marketable securities

$ 1,013

$ 1,100

$ 1,152

$ 777

(A)

Manufacturing

marketable

securities

October

31,

2008

million

were

included

Other

current

assets

for

financial

reporting.

(A)

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

SEC Regulation G –

Manufacturing Cash

Manufacturing

Operations

Financial

Services

Operations

Adjustments

Condensed

Consolidated

Cash Flows

(Dollars in Millions)

For the year ended October 31, 2009

Cash flows from operations

534

704

1,238

Cash flows from investing / capital expenditures

(284)

(212)

Cash flows from financing / debt pay down

(780)

(20)

(764)

Effect of exchange rate changes

Net cash flows

295

(26)

271

Blue Diamond Consolidation

Beginning cash, cash equivalents and marketable securities balance

777

(2)

861

Ending cash, cash equivalents and marketable securities balance

1,152

1,212

Manufacturing

Operations

Financial

Services

Operations

Adjustments

Condensed

Consolidated

Cash Flows

(Dollars in Millions)

For the year ended October 31, 2010

Cash flows from operations

409

698

1,107

Cash flows from investing / capital expenditures

(350)

492

(576)

(434)

Cash flows from financing / debt pay down

(110)

(1,180)

(10)

(1,300)

Effect of exchange rate changes

(1)

Net cash flows

(52)

(586)

(627)

Blue Diamond Consolidation

Beginning cash, cash equivalents and marketable securities balance

1,152

1,212

Ending cash, cash equivalents and marketable securities balance

1,100

(586)

585

Manufacturing segment cash flow reconciliation:

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

SEC Regulation G –

Manufacturing Cash

Manufacturing segment cash flow reconciliation:

Manufacturing

Operations

Financial

Services

Operations

Adjustments

Condensed

Consolidated

Cash Flows

(Dollars in Millions)

For the nine months ended July 31, 2011

Cash flows from operations

$ 236

$ 303

$ -

$ 539

Cash flows from investing / capital expenditures

(325)

(11)

(34)

(370)

Cash flows from financing / debt pay down

(5)

(312)

(317)

Effect of exchange rate changes

Net cash flows

$ (87)

$ (20)

$ (34)

$ (141)

Blue Diamond Consolidation

Beginning cash, cash equivalents and marketable securities balance

1,100

(586)

585

Ending cash, cash equivalents and marketable securities balance

$ 1,013

$ 51

$ (620)

$ 444

Manufacturing segment cash flow reconciliation:

Manufacturing

Operations

Financial

Services

Operations

Adjustments

Condensed

Consolidated

Cash Flows

(Dollars in Millions)

For the three months ended July 31, 2011

Cash flows from operations

$ 64

$ 249

$ -

$ 313

Cash flows from investing / capital expenditures:

(129)

118

Cash flows from financing / debt pay down

(259)

Effect of exchange rate changes

(1)

(3)

(4)

Net cash flows

$ (66)

$ 2

$ 118

$ 54

Blue Diamond Consolidation

Beginning cash, cash equivalents and marketable securities balance

1,079

(738)

390

Ending cash, cash equivalents and marketable securities balance

$ 1,013

$ 51

$ (620)

$ 444

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

SEC Regulation G –

Three and nine months ended July 31, 2011 and 2010

See following slide for explanation of adjustments.

2011

2010

2011

2010

Revised

(A)

Revised

(A)

(in millions, except per share data)

Net income (loss) attributable to Navistar International Corporation

$ 1,400

$ 117

$ 1,468

$ 179

Plus:

Engineering

integration

costs

(B)

Restructuring

North

American

manufacturing

operations

(C)

122

Ford

restructuring

and

charges

(benefits)

(D)

(10)

(27)

Less:

Income

tax

valuation

allowance

release

(E)

1,476

Adjusted net income attributable to Navistar International Corporation

$ 61

$ 107

$ 155

$ 152

2011

2010

2011

2010

Revised

(A)

Revised

(A)

(in millions)

Diluted earnings (loss) per share attributable to Navistar International Corporation

$ 18.24

$ 1.56

$ 19.04

$ 2.44

Effect

adjustments

diluted

earnings

per

attributable

Navistar

International

Corporation

(17.45)

(0.12)

(17.03)

(0.36)

Adjusted diluted earnings per share attributable to Navistar International Corporation

$ 0.79

$ 1.44

$ 2.01

$ 2.08

Diluted weighted shares outstanding

76.8

74.3

77.1

73.1

Adjusted net income attributable to Navistar International Corporation reconciliation:

Adjusted diluted earnings per share attributable to Navistar International Corporation reconciliation:

Three Months Ended

July 31,

Nine Months Ended

July 31,

Three Months Ended

July 31,

Nine Months Ended

July 31,

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

SEC Regulation G –

Three and nine months ended July 31, 2011 and 2010 –

(Continued)

(A)

Net income attributable to Navistar International Corporation has been revised to reflect a retrospective change in accounting principle. See Note

1, Summary of significant accounting policies of our Form 10Q for additional information.

(B)

Engineering

integration

costs

relate

the

consolidation

our

truck

and

engine

engineering

operations

well

the

move

our

world

headquarters. These costs include restructuring charges for activities at our Fort Wayne facility of $4 million and $23 million for the three and nine

months ended July 31, 2011, respectively. The restructuring charges recorded are based on restructuring plans that have been committed to by

management and are based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the

restructuring liabilities. We also incurred an additional $11 million and $18 million of other related costs for the three and nine months ended July 31,

2011, respectively. Our manufacturing segment recognized $12 million and $33 million of the engineering integration costs for the three and nine

months ended July 31, 2011, respectively. For the remainder of 2011, we expect to incur approximately $36 million of additional charges related to

these activities and between $80 million and $110 million of additional charges in 2012.We continue to develop plans for efficient transitions related to

these activities and the optimization of our operations and management structure.

(C)

Restructuring of North American manufacturing operations are charges primarily related to our plans to close our Chatham, Ontario heavy truck

plant

and

Workhorse

chassis

plant

Union

City,

Indiana,

and

significantly

scale

back

operations

our

Monaco

recreational

vehicle

headquarters

and motor coach manufacturing plant in Coburg, Oregon. These costs include restructuring charges of $53 million and related charges of $5 million

for the three and nine months ended July 31, 2011. The restructuring and related charges recorded are based on restructuring plans that have been

committed

management

and

are

based

upon

management's

best

estimates

future

events.

Changes

the

estimates

may

require

future

adjustments to the restructuring liabilities. In addition, the Company recognized $64 million of impairment charges related to certain intangible assets

and property plant and equipment primarily related to these facilities. The Truck segment recognized $119 million of restructuring of North American

manufacturing

operation

charges

for

the

three

and

nine

months

ended

July

31,

2011.

expect

incur

$40

million

$90

million

additional

charges in future periods related to these activities.

(D)

Ford

restructuring

and

charges

(benefits)

are

charges

and

benefits

recognized

2010

restructuring

activity

our

Indianapolis

Casting Corporation and Indianapolis Engine Plant. The net benefits were included in Restructuring charges in our Engine segment.

(E)

In the third quarter of 2011, the Company recognized an income tax benefit of $1.476 billion from the release of a portion of our income tax

valuation allowance.

Adjustments included in the above schedule have not been adjusted to reflect their income tax effect as the adjustments are intended to represent the

impact on the Company’s consolidated statement of operations without the incremental income tax effect that would result from the release of the

income tax valuation allowance. The charges related to our Canadian operations would not be impacted as a full income tax valuation allowance

remains for Canada. In addition, on a non-GAAP basis no incremental income tax for the three and nine months ended July 31, 2011 is presented

because the cumulative impact from the increased effective tax rate was offset by the tax benefit from restructuring and impairment charges in the

quarter.

3 Quarter 2011 Earnings Call

Sept. 7, 2011

NYSE: NAV

SEC Regulation G –

Manufacturing Segment Profit Three and nine months ended July 31,

2011 and 2010

(A)

Net income attributable to Navistar International Corporation has been revised to reflect a retrospective change in accounting principle. See Note 1, Summary of significant accounting policies of our Form 10Q for

additional information.

(B)

Engineering integration costs

relate

the

consolidation

our

truck

and

engine

engineering

operations

well

the

move

our

world

headquarters.

These

costs

include

restructuring

charges

for

activities

our

Fort

Wayne

facility

million

and

$23

million

for

the

three

and

nine

months

ended

July

31,

2011,

respectively.

The

restructuring

charges

recorded

are

based

restructuring

plans

that

have

been

committed

to by

management and are based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. We also incurred an additional $11 million and $18

million of other related costs for the three and nine months ended July 31, 2011, respectively. Our manufacturing segment recognized $12 million and $33 million of the engineering integration costs for the three and nine

months ended July 31, 2011, respectively. For the remainder of 2011, we expect to incur approximately $36 million of additional charges related to these activities and between $80 million and $110 million of additional

charges in 2012.We continue to develop plans for efficient transitions related to these activities and the optimization of our operations and management structure.

(C)

Restructuring of North American manufacturing operations are charges primarily related to our plans to close our Chatham, Ontario heavy truck plant and Workhorse chassis plant in Union City, Indiana, and to

significantly scale back operations at our Monaco recreational vehicle headquarters and motor coach manufacturing plant in Coburg, Oregon. These costs include restructuring charges of $53 million and related charges of

$5 million for the three and nine months ended July 31, 2011. The restructuring and related charges recorded are based on restructuring plans that have been committed to by management and are based upon

management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. In addition, the Company recognized $64 million of impairment charges related to

certain intangible assets and property plant and equipment primarily related to these facilities. The Truck segment recognized $119 million of restructuring of North American manufacturing operation charges for the three

and nine months ended July 31, 2011. We expect to incur $40 million to $90 million of additional charges in future periods related to these activities.

(D)

Ford restructuring

and

charges

(benefits)

are

charges

and

benefits

recognized

2010

restructuring

activity

our

Indianapolis

Casting

Corporation

and

Indianapolis

Engine

Plant.

The

net

benefits

were included in Restructuring charges in our Engine segment.

Manufacturing segment profit and adjusted manufacturing segment profit

2011

2010

2011

2010

Revised

(A)

Revised

(A)

(in millions)

Net income (loss) attributable to Navistar International Corporation

$ 1,400

$ 117

$ 1,468

$ 179

Less:

Financial services segment profit

102

Corporate and eliminations

(120)

(175)

(367)

(460)

Income tax benefit (expense)

1,463

(19)

1,458

(17)

Manufacturing segment profit

$ 27

$ 278

$ 275

$ 595

Plus:

Engineering integration costs

(B)

Restructuring of North American manufacturing operations

(C)

119

Ford restructuring and related charges (benefits)

(D)

(10)

(17)

Adjusted manufacturing segment profit

$ 158

$ 268

$ 427

$ 578

Three Months Ended July 31,

Nine Months Ended July 31,

Navistar International (NAV) 8-KNavistar Reports 3Q Profit; Announces Stock Repurchase