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, 1998

                                       OR

            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)

           Delaware                                   36-2472404
 (State or other jurisdiction of         (I.R.S. Employer Identification No.)
  incorporation or organization)

 2850 West Golf Road Rolling Meadows, Illinois            60008
   (Address of principal executive offices)             (Zip Code)

         Registrant's telephone number including area code 847-734-4000

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

                       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, 1998, the number of shares outstanding of the registrant's  common
stock was 1,600,000.

THE   REGISTRANT  IS  A  WHOLLY-OWNED   SUBSIDIARY  OF  NAVISTAR   INTERNATIONAL
TRANSPORTATION  CORP. AND MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS
H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE  FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT.

<PAGE>








                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES


                                      INDEX



                                                                            Page

PART I.      FINANCIAL INFORMATION

  Item 1.    Financial Statements:

             Statements of Consolidated Income and Retained Earnings --
             Three Months and Six Months Ended April 30, 1998 and 1997......  2

             Statements of Consolidated Financial Condition --
             April 30, 1998; October 31, 1997; and April 30, 1997...........  3

             Statements of Consolidated Cash Flow --
             Six Months Ended April 30, 1998 and 1997.......................  4

             Notes to Consolidated Financial Statements.....................  5

  Item 2.    Management's Discussion and Analysis of Results of
             Operations and Financial Condition.............................  7


PART II.     OTHER INFORMATION

  Item 6.    Exhibits and Reports on Form 8-K............................... 11

Signature      ............................................................. 11


<PAGE>




                         PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements


                 NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
       STATEMENTS OF CONSOLIDATED INCOME AND RETAINED EARNINGS (Unaudited)
                              (Millions of dollars)

<TABLE>
<CAPTION>
                                          Three Months Ended   Six Months Ended
                                               April 30             April 30
                                           1998        1997      1998      1997
<S>                                      <C>         <C>       <C>       <C>
Revenue
  Retail notes and lease financing  . .  $ 30.9      $ 26.2    $ 59.8    $ 51.9
  Wholesale notes . . . . . . . . . . .    11.5         9.3      19.8      18.5
  Accounts  . . . . . . . . . . . . . .     7.1         7.1      16.7      14.3
  Servicing fee income  . . . . . . . .     5.0         4.5      10.7      10.1
  Insurance premiums earned . . . . . .     8.0         8.1      15.9      16.5
  Marketable securities . . . . . . . .     1.6         2.1       3.8       4.1
          Total . . . . . . . . . . . .    64.1        57.3     126.7     115.4


Expense
  Cost of borrowing
        Interest   . . . . . . . . . . .   20.3        17.2      36.0      31.5
        Other  . . . . . . . . . . . . .    1.6         1.4       3.5       3.0
          Total  . . . . . . . . . . . .   21.9        18.6      39.5      34.5

  Credit, collection and administrative.    8.5         7.5      16.6      14.5
  Provision for losses on receivables  .    0.8         0.5       1.2       1.2
  Insurance claims and underwriting  . .    8.0         9.7      17.1      17.6
  Depreciation and other . . . . . . . .    7.6         5.8      13.1      10.5
          Total  . . . . . . . . . . . .   46.8        42.1      87.5      78.3


Income Before Taxes on Income  . . . . .   17.3        15.2      39.2      37.1

Taxes on Income  . . . . . . . . . . . .    6.6         5.9      15.1      14.4

Net Income . . . . . . . . . . . . . . .   10.7         9.3      24.1      22.7

Retained Earnings

  Beginning of period  . . . . . . . . .  114.5       120.8     113.1     107.4

  Dividends paid . . . . . . . . . . . .   15.0        30.0      27.0      30.0

  End of period  . . . . . . . . . . . .  110.2      $100.1    $110.2   $ 100.1
</TABLE>


See Notes to Consolidated Financial Statements.


<PAGE>


                 NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
           STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION (Unaudited)
                              (Millions of dollars)

<TABLE>
<CAPTION>
                                          April 30     October 31     April 30
                                            1998          1997          1997
                    ASSETS
<S>                                       <C>          <C>           <C>
Cash and Cash Equivalents . . . . . . .   $   39.2     $    10.7     $    2.8
Marketable Securities . . . . . . . . .      113.3         114.2        122.3

Finance Receivables
     Retail notes and lease financing .      772.4         706.5        681.1
     Wholesale notes  . . . . . . . . .      308.0          45.7        200.8
     Accounts . . . . . . . . . . . . .      379.3         471.0        358.2
                                           1,459.7       1,223.2      1,240.1
     Allowance for losses . . . . . . .      (12.2)        (12.0)       (12.0)
         Finance Receivables, Net . . .    1,447.5       1,211.2      1,228.1

Amounts Due from Sales of Receivables .      211.1         233.3        209.1
Equipment on Operating Leases, Net  . .      198.9         124.1        107.3
Repossessions . . . . . . . . . . . . .       13.8          13.0         29.9
Other Assets  . . . . . . . . . . . . .       93.7         104.1         82.9
Total Assets  . . . . . . . . . . . . .   $2,117.5      $1,810.6     $1,782.4


   LIABILITIES AND SHAREOWNER'S EQUITY

Short-Term Borrowings . . . . . . . . .   $  138.4     $   141.0    $   145.0
Net Payable to Affiliates . . . . . . .       84.0         131.5        126.2
Other Liabilities . . . . . . . . . . .       49.9          59.8         57.0
Senior and Subordinated Debt  . . . . .    1,453.4       1,082.7      1,067.8
Dealers' Reserves . . . . . . . . . . .       23.2          22.2         22.0
Unpaid Insurance Claims and
  Unearned Premiums . . . . . . . . . .       82.4          85.6         92.0

Shareowner's Equity
     Capital stock (Par value $1.00, 1,600,000
      shares issued and outstanding)
      and paid-in capital . . . . . . .      171.0         171.0        171.0
     Retained earnings  . . . . . . . .      110.2         113.1        100.1
     Unrealized gains on marketable
       securities . . . . . . . . . . .        5.0           3.7          1.3
         Total  . . . . . . . . . . . .      286.2         287.8        272.4
Total Liabilities and
  Shareowner's Equity . . . . . . . . .   $2,117.5      $1,810.6     $1,782.4
</TABLE>



See Notes to Consolidated Financial Statements.



<PAGE>


                 NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
                STATEMENTS OF CONSOLIDATED CASH FLOW (Unaudited)
                              (Millions of dollars)

<TABLE>
<CAPTION>
                                                              Six Months Ended
                                                                  April 30
                                                             1998         1997
<S>                                                        <C>         <C>
Cash Flow From Operations
     Net income  . . . . . . . . . . . . . . . . . . . .   $ 24.1       $ 22.7
     Adjustments to reconcile net income to cash
         provided from operations:
         Gains on sales of receivables  . . . . . . . . .    (7.2)        (6.9)
         Depreciation and amortization  . . . . . . . . .    15.2         10.8
         Provision for losses on receivables  . . . . . .     1.2          1.2
         (Decrease)increase in net payable to affiliates.   (47.5)       101.7
         Other  . . . . . . . . . . . . . . . . . . . . .    (9.7)       (13.3)
             Total  . . . . . . . . . . . . . . . . . . .   (23.9)       116.2

Cash Flow From Investing Activities
   Proceeds from sold retail notes  . . . . . . . . . . .   465.3        481.0
     Purchase of retail notes and lease receivables . . .  (576.4)      (424.7)
     Principal collections on retail notes and
       lease receivables  . . . . . . . . . . . . . . . .    54.8         23.5
     Acquisitions over cash collections of wholesale 
       notes and accounts receivable. . . . . . . . . . .  (153.8)       (71.1)
     Purchase of marketable securities  . . . . . . . . .   (15.8)       (46.5)
     Proceeds from sales and maturities
       of marketable securities . . . . . . . . . . . . .    19.3         53.9
     Purchase of equipment leased to others . . . . . . .   (90.9)       (35.5)
     Sale of equipment leased to others . . . . . . . . .     2.7         19.5
             Total  . . . . . . . . . . . . . . . . . . .  (294.8)         0.1

Cash Flow From Financing Activities
     Net (decrease) increase in short-term borrowings . .    (2.6)        45.6
     Net increase (decrease) in bank revolving
       credit facility usage  . . . . . . . . . . . . . .   302.0       (204.0)
     Net increase in asset-backed commercial paper
       facility usage . . . . . . . . . . . . . . . . . .    12.1          0.3
     Proceeds from long-term debt . . . . . . . . . . . .    91.5         78.9
     Principal payments of long-term debt . . . . . . . .   (28.8)       (11.0)
     Dividends paid to Transportation . . . . . . . . . .   (27.0)       (30.0)
             Total  . . . . . . . . . . . . . . . . . . .   347.2       (120.2)

Increase (decrease) in Cash and Cash Equivalents  . . . .    28.5         (3.9)

Cash and Cash Equivalents at Beginning of Period  . . . .    10.7          6.7

Cash and Cash Equivalents at End of Period  . . . . . . . $  39.2       $  2.8

Supplemental disclosure of cash flow information

     Interest paid  . . . . . . . . . . . . . . . . . . . $  37.9       $ 32.1

     Income taxes paid  . . . . . . . . . . . . . . . . . $  19.5       $ 15.3
</TABLE>


See Notes to Consolidated Financial Statements.


<PAGE>




                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


1.   The  consolidated  financial  statements  include the  accounts of Navistar
     Financial   Corporation   ("NFC")   and   its   wholly-owned   subsidiaries
     ("Corporation").     Navistar     International     Transportation    Corp.
     ("Transportation"),   which  is  wholly-owned  by  Navistar   International
     Corporation ("Navistar"), is the parent company of the Corporation.

     The  accompanying  unaudited  financial  statements  and  notes  have  been
     prepared  in  accordance  with the  accounting  policies  set  forth in the
     Corporation's  1997  Annual  Report  on Form  10-K  and  should  be read in
     conjunction  with  the  Notes  to  the  Consolidated  Financial  Statements
     therein.

     In the opinion of management,  these interim financial  statements  reflect
     all  adjustments,  consisting of normal  recurring  accruals,  necessary to
     present fairly the financial position,  results of operations and cash flow
     for the interim  periods  presented.  Interim  results are not  necessarily
     indicative  of  results to be  expected  for the full  year.  Certain  1997
     amounts have been reclassified to conform with the presentation used in the
     1998 financial statements.


2.   Finance  receivable  balances  do  not  include  receivables  sold  by  the
     Corporation  to  public  and  private   investors  with  limited   recourse
     provisions. Outstanding sold receivable balances are as follows:

<TABLE>
<CAPTION>
                                       April 30      October 31     April 30
                                         1998           1997           1997
                                                    ($ Millions)
<S>                                    <C>            <C>            <C>
     Retail notes . . . . . . . . . .  $1,417.7       $1,422.2       $1,373.7
     Wholesale notes  . . . . . . . .     500.0          545.5          400.0
         Total  . . . . . . . . . . .  $1,917.7       $1,967.7       $1,773.7
</TABLE>

     In November 1997, the Corporation sold $500 million of retail notes, net of
     unearned  finance income,  through Navistar  Financial  Retail  Receivables
     Corporation  (NFRRC)  to an  owner  trust  which,  in turn,  sold  notes to
     investors.  A gain of $7.2 million was recognized on the sale. The proceeds
     of $477 million,  net of underwriting  fees and credit  enhancements,  were
     used by the Corporation for general working capital purposes.

     In June 1998,  the  Corporation  sold $501 million of retail notes,  net of
     unearned  finance  income,  through NFRRC to an owner trust which, in turn,
     sold notes to investors. A gain of $8.1 million was recognized on the sale.
     The  proceeds  of  $482  million,  net  of  underwriting  fees  and  credit
     enhancements,  were used by the  Corporation  for general  working  capital
     purposes.




<PAGE>







                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


     The allowance for losses on receivables is summarized as follows:

<TABLE>
<CAPTION>
                                        April 30      October 31     April 30
                                          1998           1997          1997
                                                     ($ Millions)
<S>                                        <C>           <C>           <C>  
   Allowance pertaining to:
       Owned notes . . . . . . . . .       $12.2         $12.0         $12.0
       Sold notes  . . . . . . . . .        12.5          12.5          12.5
          Total  . . . . . . . . . .       $24.7         $24.5         $24.5
</TABLE>


3.   The  Corporation  entered  into $400 million of forward  treasury  locks in
     anticipation  of a June  1998  sale  of  retail  receivables.  These  hedge
     agreements,  which were closed in conjunction with the pricing of the sale,
     resulted in an immaterial gain which was included in the gain on the sale.

     The  Corporation  also entered into a $100 million forward treasury lock in
     anticipation  of a  November  1998 sale of retail  receivables.  This hedge
     agreement  will be closed in  conjunction  with the pricing of the sale and
     any resulting gain or loss will be included in the gain or loss on the sale
     of receivables recognized in November 1998.




<PAGE>


                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
          AND FINANCIAL CONDITION


Certain  statements under this caption constitute  "forward-looking  statements"
under the Securities Reform Act, which involve risks and uncertainties. Navistar
Financial Corporation's actual results may differ significantly from the results
discussed in such  forward-looking  statements.  Factors that might cause such a
difference  include,  but are not limited to, those  discussed under the heading
"Business Outlook".


Financing Volume

In the first half of fiscal  1998  industry  retail  sales for Class 5 through 8
trucks  was  approximately  14%  higher  than  1997.  The  Corporation's  retail
financing  acquisitions  during the first six months of fiscal  1998,  including
retail notes and finance and operating  leases,  were $667  million,  45% higher
than 1997.  The  increase is primarily  the result of the strong truck  industry
demand  and an  increase  in  the  Corporation's  finance  market  share  of new
International  trucks  sold in the U.S.  from  13.4% in 1997 to 15.9% in  fiscal
1998. Serviced retail notes and lease financing balances were $2,394 million and
$2,169 million at April 31, 1998 and 1997, respectively.

In spite of the continued strong liquidity in the commercial  financing  market,
the  Corporation  provided 94% and 95% of the wholesale  financing of new trucks
sold to  Transportation's  dealers  in the first six  months of fiscal  1998 and
1997, respectively.  Serviced wholesale note balances were $892 million at April
30, 1998, a 33% increase  compared to April 30, 1997 due to the strong  industry
demand.


Results of Operations

The  components of net income for the three and six month periods ended April 30
are as follows:

<TABLE>
<CAPTION>
                                              Three Months       Six Months
                                             Ended April 30    Ended April 30
                                             1998      1997     1998     1997
<S>                                         <C>       <C>      <C>      <C>
Income before income taxes:
  Finance operations. . . . . . . . . . .   $15.7     $14.9    $36.6    $34.4
  Insurance operations. . . . . . . . . .     1.6       0.3      2.6      2.7
     Income before taxes. . . . . . . . .    17.3      15.2     39.2     37.1
Taxes on income . . . . . . . . . . . . .     6.6       5.9     15.1     14.4
     Net income . . . . . . . . . . . . .   $10.7     $ 9.3    $24.1    $22.7
</TABLE>

During the second quarter of fiscal 1998, the Corporation's pretax income of $17
million was $2 million higher than the corresponding  period of fiscal 1997. The
increase  was due  primarily  to an  increase  in  finance  receivable  balances
resulting from an increase in  Transportation's  sales offset, in part, by lower
financing margins due to the highly competitive commercial financing market.



<PAGE>




                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
          AND FINANCIAL CONDITION


Results of Operations (continued)

Finance Operations:

Pretax  income  during the first six months of 1998  increased $2 million to $39
million  compared  to the same  period of 1997.  During the first half of fiscal
1998,   receivable  balances  were  higher  as  a  result  of  the  increase  in
Transportation's  sales.  The higher level of financing was partially  offset by
lower  financing  margins  primarily  due to the highly  competitive  commercial
financing market.

Retail note and lease  revenue  increased $8 million to $60 million in the first
half of 1998  compared to 1997.  The increase is primarily  the result of higher
average finance receivables due to an increase in Transportation's  retail sales
and an  increase  in  operating  lease  balances  due to a  shift  toward  lease
financing.  Included in retail note and lease revenue is operating lease revenue
of $20  million and $15 million in 1998 and 1997,  respectively.  For  operating
leases,  the  Corporation  recognizes  the entire  lease  payment as revenue and
records depreciation expense on the assets under lease.

Wholesale  note  revenue  increased  to $20  million  in the first  half of 1998
compared  to $19  million in fiscal 1997 due  primarily  to the higher  level of
wholesale financing activity, partially offset by slightly lower yields.

Retail and wholesale  account  revenue was $17 million in the first half of 1998
compared to $14 million in 1997. The increase was primarily the result of higher
average balances.

Borrowing  costs  increased  $5 million to $40 million  during the first half of
1998 primarily as a result of higher average receivable funding requirements and
slightly  higher market  interest  rates.  The  Corporation's  weighted  average
interest rate on all debt increased to 6.3% from 6.2% in the first six months of
1997.

Credit,  collection and administrative  expenses increased to $17 million during
the first six months of 1998 from $15 million in 1997.  The increase in 1998 was
primarily due to employee related costs.

Depreciation  and other  expenses  during  the first six  months of 1998 was $13
million  compared to $11 million in the comparable  period of 1997. The increase
is primarily  the result of a larger  investment  in equipment  under  operating
leases.

Insurance Operations:

Harco  National  Insurance  Company's  pretax income in the first half of fiscal
1998 was  comparable  to that of 1997 as a slight  decrease  in  earned  premium
revenue was offset by improved loss experience.



<PAGE>




                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
          AND FINANCIAL CONDITION


Liquidity and Funds Management

The Corporation's operations are substantially dependent upon the production and
sale of  Transportation's  truck products in the United States.  The Corporation
has traditionally  obtained the funds to provide  financing to  Transportation's
dealers and retail customers from sales of receivables,  commercial paper, short
and  long-term  bank  borrowings,  medium and  long-term  debt issues and equity
capital.  The  Corporation's  current  debt  ratings  have made sales of finance
receivables the most economical source of funding.  The Corporation's  insurance
operation  generates its funds through  internal  operations and has no external
borrowings.

In January  1998,  Moody's,  Standard  and Poors and Duff and Phelps  raised the
Corporation's  senior debt  ratings  from Ba2, BB and BB+ to Ba1,  BB+ and BBB-,
respectively,  while the subordinated  debt ratings were also raised from B1, B+
and BB to Ba3, BB- and BB+, respectively.

Operations  used  $24  million  of cash in the  first  half of 1998 as the  cash
provided from net income was more than offset by a decrease in accounts  payable
to affiliated companies.  Investment activities used $295 million of cash during
this period  principally as a result of the purchase of finance  receivables and
equipment  leased to others  offset,  in part, by the sale of retail  notes.  To
finance the increase in receivable  balances and pay dividends of $27 million to
Transportation,  the  Corporation  increased  its  financing  activities by $347
million.

Receivable sales were a significant  source of funding in 1998 and 1997. Through
the asset-backed public market, the Corporation has been able to fund fixed rate
retail note  receivables  at rates offered to companies  with  investment  grade
ratings.  During  the first six months of fiscal  1998 and 1997 the  Corporation
sold $500  million and $486  million,  respectively,  of retail  notes,  through
Navistar  Financial Retail  Receivables  Corporation  ("NFRRC"),  a wholly-owned
subsidiary,  to owner trusts  which,  in turn,  sold notes and  certificates  to
investors.  At April 30, 1998,  the remaining  shelf  registration  available to
NFRRC for issuance of asset-backed securities was $973 million.

In June 1998, The Corporation sold $501 million of retail notes, net of unearned
finance  income,  through NFRRC to an owner trust which,  in turn, sold notes to
investors. A gain of $8 million was recognized on the sale.

As of April 30, 1998,  Navistar Financial  Securities  Corporation  ("NFSC"),  a
wholly-owned  subsidiary  of the  Corporation,  had  in  place  a  $500  million
revolving wholesale note trust that provides for the continuous sale of eligible
wholesale  notes on a daily  basis.  At April  30,  1998,  the  remaining  shelf
registration  available  to NFSC for the issuance of investor  certificates  was
$200 million.

At April 30,  1998,  available  funding  under the amended and  restated  credit
facility and the  asset-backed  commercial  paper facility was $242 million,  of
which $138 million provided funding backup for the outstanding  short-term debt.
The remaining  $104  million,  when  combined  with  unrestricted  cash and cash
equivalents,  made $143 million  available to fund the general business purposes
of the Corporation.



<PAGE>



                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
          AND FINANCIAL CONDITION


Year 2000

The Corporation has identified all  significant  applications  that will require
modification to ensure Year 2000 compliance. Internal and external resources are
being used to make the required modifications and test Year 2000 compliance. The
Corporation  plans to complete  the  modifications  and  testing  process of all
significant  applications by July 1999, which is prior to any anticipated impact
on its operating  systems.  The total cost of the Year 2000 project has not been
and is not anticipated to be material to the Corporation's financial position or
results of operations and will be funded through operating cash flows.

The costs of the project and the date on which the Corporation  believes it will
complete the Year 2000  modifications  are based on management's best estimates,
which were derived utilizing  numerous  assumptions of future events,  including
the continued availability of certain resources,  third party modification plans
and other factors.  However, there can be no guarantee that these estimates will
be achieved and actual results could differ  materially from those  anticipated.
Specific factors that might cause such material differences include, but are not
limited to, the  availability  and cost of personnel  trained in this area,  the
ability  to  locate  and  correct  all  relevant   computer  codes  and  similar
uncertainties.


Business Outlook

Navistar  forecasts  industry  demand  for Class 5 through 8 trucks to  increase
approximately 12% over 1997 levels. The competitive  commercial financing market
will  continue  to  put  pressure  on the  Corporation's  retail  and  wholesale
financing activity and margins.

Management  believes that collections on the outstanding  receivables  portfolio
plus cash available from the  Corporation's  various funding sources will permit
Navistar  Financial  to meet  the  financing  requirements  of  Transportation's
dealers and retail customers through 1998 and beyond.



<PAGE>






                         NAVISTAR FINANCIAL CORPORATION
                                AND SUBSIDIARIES


                           PART II - OTHER INFORMATION


Item 6.        Exhibits and Reports on Form 8-K

               No  reports on Form 8-K were  filed  during the six months  ended
               April 30, 1998.



                                        SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                        Navistar Financial Corporation
                                                (Registrant)






Date June 12, 1998                       /s/P. E. Cochran
                                            P. E. Cochran
                                            Vice President and Controller
                                            (Principal Accounting Officer)