Navistar Racing the Clock

OKLAHOMA CITY -- These days, Navistar (NAVZ Quote) feels a pressing need for speed.

The Warrenville, Ill., manufacturer has come out of nowhere to become a top supplier in the lucrative, fiercely competitive race to supply the military with mine-resistant ambush-protected vehicles. This story is the first installment in a five-part series examining the top players in the multibillion-dollar MRAP bidding.

Navistar, which came to fame as a maker of commercial trucks, has surpassed rivals including Force Protection (FRPT Quote) to become one of the biggest suppliers under MRAP, with orders for some 2,000 trucks. The government is anxious to get its hands on the trucks, which are armored to protect U.S. troops deployed in overseas hotspots such as Iraq and Afghanistan.

But Navistar faces another crucial deadline as well. The company needs to file overdue financial statements soon or face possible backlash from investors --including an activist hedge fund known for aggressively pressing underperforming companies.

Navistar has already promised to file audited 2005 financial results by the end of September and to catch up completely during the first quarter of next year. But the damage is done: Last year, Navistar lost its coveted spot on the New York Stock Exchange, where it traded for some 99 years. The stock currently resides on the lowly pink sheets.

Navistar shares have continued to rise even since their delisting, as the company racks up military orders. But also boosting the stock has been a buying spree by Harbinger Capital Partners, which has amassed nearly 15% of Navistar's outstanding stock to emerge as the company's largest shareholder.