NAVISTAR FINANCIAL CORP - 10-Q Quarterly Report

Delaware

36-2472404

(State or other jurisdiction of

(I.R.S. Employer Identification No.)

incorporation or organization)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2005

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the transition period from			to
	Commission File Number 1-4146-1
		----------

NAVISTAR FINANCIAL CORPORATION
	(Exact name of Registrant as specified in its charter)

425 N. Martingale Road, Schaumburg, Illinois			60173
	(Address of principal executive offices)	(Zip Code)

Registrant's telephone number including area code 630-753-4000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days Yes [ X ] No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
Yes [	] No [ X ]

APPLICABLE ONLY TO ISSUERS INVOLVED
	IN BANKRUPTCY PROCEEDINGS DURING
		THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes [

] No[

]

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of May 31, 2005, the number of shares outstanding of the registrant's common stock was 1,600,000.

THE REGISTRANT IS A WHOLLY-OWNED SUBSIDIARY OF INTERNATIONAL TRUCK AND ENGINE CORPORATION, WHICH IS A WHOLLY-OWNED SUBSIDIARY OF NAVISTAR INTERNATIONAL CORPORATION, AND MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H (1) (a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

NAVISTAR FINANCIAL CORPORATION
	AND SUBSIDIARIES

	INDEX
			Page
PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements:

Condensed Statements of Consolidated Income, Comprehensive Income, and Retained Earnings -- Quarter Ended April 30, 2005 and 2004 (as restated)		2

Condensed Statements of Consolidated Financial Condition -- April 30, 2005; October 31, 2004; and April 30, 2004 (as restated)		3

Condensed Statements of Consolidated Cash Flow -- Quarter Ended April 30, 2005 and 2004 (as restated)		4

Notes to Condensed Consolidated Financial Statements		5

Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition		12

Item 4. Controls and Procedures		18

PART II. OTHER INFORMATION

Item 1. Legal Proceedings		19

Item 5. Other Information		19

Item 6. Exhibits and Reports on Form 8-K		19

Signature		21

Part I – Financial Information

Item 1. Financial Statements

Navistar Financial Corporation and Subsidiaries

	Condensed Statements of Consolidated Income and Retained Earnings (Unaudited)
		Three Months Ended						Six Months Ended
		(As Restated) (See Note 2)						(As Restated) (See Note 2)
Millions of Dollars		April 2005			April 2004			April 2005			April 2004

Revenues
Retail Notes and Finance Leases		$	11.4	$		9.6	$		18.0	$		21.0
Income Related to Sales of Finance
Receivables			9.4			25.0			27.3			35.4
Operating Leases			11.1			13.9			22.7			27.5
Wholesale Notes			11.0			7.7			22.2			15.1
Accounts			8.5			6.4			14.2			11.2
Servicing Income			9.2			6.2			18.1			12.3
Other Revenue			2.6			0.9			5.3			2.1

Total			63.2			69.7			127.8			124.6

Expenses
Cost of Borrowing Interest Expense			11.1			11.4			21.3			23.1
Other			1.7			2.6			3.2			4.6
Credit, Collection and Administrative			13.6			9.0			24.0			20.0
Provision for Credit Losses			4.1			3.3			6.6			4.4
Depreciation on Equipment on Operating Leases			8.1			9.7			16.3			20.1
Other Expense			0.4			0.5			1.0			1.0

Total			39.0			36.5			72.4			73.2

Income Before Taxes			24.2			33.2			55.4			51.4
Income Tax Expense			9.3			13.0			21.4			19.9


Net Income		$	14.9	$		20.2	$		34.0	$		31.5

Retained Earnings Beginning of Period		$	265.1	$		196.2	$		246.0	$		184.9
Dividends Paid			-			-			-			-
End of Period		$	280.0	$		216.4	$		280.0	$		216.4

Condensed Statements of Consolidated Comprehensive Income

Three Months Ended

Six Months Ended

(As Restated)

(See Note 2)

(As Restated)

(See Note 2)

Millions of Dollars

April 2005

April 2005

April 2005

April 2005

Net income

14.9

20.2

34.0

31.5

Other Comprehensive Loss:

Net Unrealized Gains (Losses) on Investments

(net of tax of $0.8, $0.0, $1.7 and $1.4)

(1.4)

0.4

2.9

2.3

Minimum Pension Liability Adjustment

(net of tax of $0.0 and $0.0)

(0.1)

Total

(1.4)

0.4