Navistar reveals financials, strong growth back in 2006

Navistar International Corp., belatedly revealing its 2006 results, enjoyed strong earnings and revenue growth that year, moving closer to its 2009 goal of $15 billion in annual revenue.

The Warrenville-based commercial truck and engine maker's profits swelled to $301 million, up from $139 million in 2005, and revenues increased to $14.2 billion in 2006 from $12.1 billion in 2005, beating analysts' estimate of $13.35 billion.

Long delayed by accounting problems, Navistar did not file a full 2006 annual report but will file it with the Securities and Exchange Commission in mid-year along with its 2007 annual report, Navistar spokeswoman Lisa Elvia said.

Pre-tax profits in Navistar's manufacturing segment alone nearly doubled on a pro forma basis to $838 million from $421 million in 2005, the Fortune 500 company said, without explaining its definition of "pro forma." The company did not return calls seeking an explanation of how the manufacturing pre-tax profit was more than twice the entire company's net income.

In late 2005, Navistar became aware of accounting problems in its financial statements stretching back to 2002. It filed no quarterly or annual reports with the SEC after October 2005 until December, when it submitted its annual report for 2005 and restated financials for 2003 and 2004.

Walter Liptak, an analyst for Barrington Research in Chicago, welcomed Thursday's new information but said he will remain neutral on Navistar's stock until the company releases its 2007 report.

"We get parts of the story, parts of the puzzle," said Liptak. "From an investor and analyst point of view, you need to have financial data to have good judgment about a company's prospects."

Navistar was de-listed from the New York Stock Exchange early last year, although its stock is currently trading in the over-the-counter "pink sheets" market at about double its NYSE price at the time the accounting problems became public.

Liptak said the company remains "very competitive" and is well positioned in its bid for contracts under the Pentagon's Joint Light Tactical Vehicle program, which will field vehicles to replace the military's Humvees.

Navistar's International Military and Government LLC subsidiary has received nearly $3 billion in orders from the U.S. Department of Defense to manufacture and deliver nearly 4,500 Mine Resistant Ambush Protect Vehicles by August.

The company's stock fell 55 cents, or nearly 1 percent, to $57.70 Thursday.