These are good days for truck makers as the market is enjoying a sharp recovery out of the depths of the recession. However, they are not equally good days for all players. While
PACCAR (Nasdaq:
PCAR),
Volvo (Nasdaq:
VOLVY.PK) and
Daimler (Nasdaq:
DDAIY.PK) are all enjoying good growth and share gains in the North American truck market,
Navistar (NYSE:
NAV) is the unfortunate source of that market share growth. While Navistar is showing some progress on the top line, investors have good reasons to be concerned about the company's market position and its decision to stick with its own engine designs.
Mixed Fiscal Q2 Performance
Navistar's performance in the second quarter was pretty mixed. True, the company did post revenue growth of 22% (on 17% shipment growth), but the company again seems to be leaking share to its rivals. Operating performance was more encouraging to a point -
gross margin slid a bit (down 70 basis points), but
operating income more than doubled from the year-ago level. Even so, this was weaker than most analysts had projected.
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