PACCAR 2009 Annual Report Download - page 30

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PACCAR Inc and Subsidiaries
7
Net sales and revenues and gross margins for truck units and aftermarket parts are provided below. The aftermarket
parts gross margin includes direct revenues and costs, but excludes certain truck segment costs.
2009 2008 % change
Truck net sales and revenues:
Trucks $ 5,103.3 $ 11,281.3 (55)
Aftermarket parts 1,890.7 2,266.1 (17)
$ 6,994.0 $ 13,547.4 (48)
Gross margin:
Trucks $ (46.6) $ 1,141.7 (104)
Aftermarket parts 625.7 795.2 (21)
$ 579.1 $ 1,936.9 (70)
Gross margin %:
Trucks (.9)% 10.1%
Aftermarket parts 33.1 % 35.1%
8.3 % 14.3%
Total truck segment gross margins for 2009 decreased to 8.3% from 14.3% in 2008. The lower gross margins were
primarily the result of lower truck gross margins. Gross margins on trucks declined to negative .9% in 2009, reflecting
lower industry demand and reduced absorption of fixed costs resulting from the decline in truck production. 2009
parts gross margins declined from the prior year primarily due to a sales mix shift to lower margin replacement parts.
2008 Compared to 2007:
2008 2007 % change
Truck net sales and revenues:
U.S. and Canada $ 4,823.7 $ 5,648.8 (15)
Europe 6,624.8 5,859.6 13
Mexico, Australia and other 2,098.9 2,345.9 (11)
$ 13,547.4 $ 13,854.3 (2)
Truck income before taxes $ 1,156.5 $ 1,352.8 (15)
The Company’s new truck deliveries are summarized below:
2008 2007 % change
United States 38,200 44,700 (15)
Canada 6,700 8,300 (19)
U.S. and Canada 44,900 53,000 (15)
Europe 63,700 60,100 6
Mexico, Australia and other 17,300 20,800 (17)
Total units 125,900 133,900 (6)
PACCAR’s worldwide truck sales and revenues were $13.55 billion in 2008 compared to $13.85 billion in 2007 due to
higher demand for the Company’s trucks in Europe more than offset by lower demand in the U.S. and Canada, and
other international markets. The impact of a weaker U.S. dollar relative to the Company’s other currencies (primarily
the euro) increased revenues and pretax profit by approximately $445.0 million and $49.5 million, respectively.
In the U.S. and Canada, net sales and revenues decreased 15% to $4.82 billion from $5.65 billion in 2007 mainly as
a result of fewer new truck deliveries. In the U.S. and Canada, Peterbilt and Kenworth delivered 44,900 heavy and
medium duty trucks during 2008, a decrease of 8,100 units or 15% from 2007 primarily due to a lower truck market
size. The Class 8 market decreased 13% to 153,000 units in 2008 from 176,000 units in 2007. PACCAR’s market
share was 26.0% in 2008 compared to 26.4% in 2007. The medium duty market decreased 28% to 63,000 units.