It hasn't been easy to follow, or own, heavy-duty truck builder
Navistar (NYSE:
NAV)
over the last four years. Not only has the company had to deal with the
normal deep cyclicality of the heavy truck market and the big changes
in the defense market, but also self-inflicted challenges brought about
by breaking with
Cummins (NYSE:
CMI) and developing its own engine technology.
With
the fiscal second quarter results in hand, it's pretty clear that we
are not even close to a "steady state" with Navistar. Significant
erosion
in overseas markets has made investors nervous about the sector as a
whole, but the company's ongoing warranty and Environmental Protection
Agency (EPA) compliance issues continue to occupy management's time and
unnerve customers.
Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/The-Navistar-Mess-Gets-Messier-NAV-CMI-PCAR-ETN0611.aspx
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