PACCAR 2011 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2011 PACCAR annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

 The Company’s new truck deliveries are summarized below:
Year ended December 31, 2011 2010 % CHANGE
United States 59,400 29,100 104
Canada 10,500 6,100 72
U.S. and Canada 69,900 35,200 99
Europe 51,100 31,200 64
Mexico, South America, Australia and other 17,000 12,400 37
Total units 138,000 78,800 75
The truck market in the U.S. and Canada in 2011 improved from the recessionary levels of 2010, reflecting higher
freight volumes and the need to replace an aging truck fleet. Industry retail sales in the heavy-duty market in U.S.
and Canada increased to 197,000 units in 2011 compared to 126,000 units in 2010. The Company’s heavy-duty
truck retail market share was a record 28.1% in 2011 compared to 24.1% in 2010, reflecting overall strong demand
for the Company’s premium products and increased deliveries to large fleet customers. The medium-duty market
was 61,000 units in 2011 compared to 41,000 units in 2010. The Company’s medium-duty market share was 12.4%
in 2011 compared to 13.5% in 2010.
The 15-tonne and above truck market in Western and Central Europe was 244,000 units compared to 183,000 units in
2010. The Company’s market share was a record 15.5% in 2011 compared to 15.2% in 2010, reflecting improvement in
the U.K., Germany and Central Europe. DAF market share in the 6- to 15-tonne market in 2011 was 8.9%, compared to
7.7% in 2010. The 6- to 15-tonne market in 2011 was 57,000 units, compared to 51,000 units in 2010.
Sales and revenues in Mexico, South America, Australia and other markets increased in 2011 primarily due to
higher new truck deliveries in Mexico and the Andean region of South America.
The major factors for the change in net sales and revenues, cost of sales and revenues, and gross margin between
2011 and 2010 follow:
NET COST GROSS
($ in millions) SALES OF SALES MARGIN
2010 $ 9,237.3 $ 8,125.5 $ 1,111.8
Increase (decrease)
Truck delivery volume 4,739.9 4,050.5 689.4
Average truck sales prices 567.7 567.7
Average per truck material, labor, and other direct costs 303.4 (303.4)
Factory overhead, warehouse and other indirect costs 273.6 (273.6)
Aftermarket parts volume 258.8 157.8 101.0
Average aftermarket parts sales prices 69.5 69.5
Average aftermarket parts direct costs 41.8 (41.8)
Currency translation 334.5 289.4 45.1
Total increase 5,970.4 5,116.5 853.9
2011 $ 15,207.7 $ 13,242.0 $ 1,965.7
The higher truck delivery volume reflects improved truck markets and higher market share. The increased
demand for trucks also resulted in higher average truck sales prices which increased sales by $567.7 million.
Cost of sales increased $303.4 million due to a higher average cost per truck, primarily from the effect of EPA
2010 engines in the U.S. and Canada.
Factory overhead, warehouse and other indirect costs increased $273.6 million primarily due to higher salaries
and related costs ($169.4 million) and manufacturing supplies and maintenance ($84.8 million) to support
higher production levels.