PACCAR 2011 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 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 improvements in income before income taxes and return on revenues for both domestic and foreign operations
were primarily due to a higher return on revenues in truck operations.
2010 Compared to 2009:
Truck
PACCAR’s Truck segment accounted for 90% and 86% of revenues in 2010 and 2009, respectively.
($ in millions)
Year ended December 31, 2010 2009 % CHANGE
Truck net sales and revenues:
U.S. and Canada $ 4,419.2 $ 3,566.0 24
Europe 3,190.2 2,520.2 27
Mexico, Australia and other 1,627.9 907.8 79
$ 9,237.3 $ 6,994.0 32
Truck income before income taxes $ 501.0 $ 25.9 *
* Percentage not meaningful
PACCAR’s worldwide truck sales and revenues increased to $9.24 billion in 2010 from $6.99 billion in 2009 due to
higher market demand in all markets attributable to improving global economic conditions.
Truck segment income before income taxes increased to $501.0 million in 2010 from $25.9 million in 2009 from
higher truck unit and aftermarket parts sales and margins in all markets, partially offset by increased R&D and
higher SG&A spending. 2010 truck income before income taxes was also affected by the translation of stronger
foreign currencies, primarily the Canadian and Australian dollars offset by a weaker euro and British pound. The
translation effect of all currencies increased 2010 income before income taxes by $15.1 million compared to 2009.
The Company’s new truck deliveries are summarized below:
Year ended December 31, 2010 2009 % CHANGE
United States 29,100 28,300 3
Canada 6,100 4,400 39
U.S. and Canada 35,200 32,700 8
Europe 31,200 22,200 41
Mexico, Australia and other 12,400 6,100 103
Total units 78,800 61,000 29
In the U.S. and Canada, 2010 net sales and revenues increased to $4.42 billion from $3.57 billion in 2009. Industry
retail sales in the heavy-duty market in U.S. and Canada increased 17% to 126,000 units in 2010 compared to
108,000 units in 2009. The Company’s market share was 24.1% in 2010 and 25.1% in 2009. The medium-duty
market was 41,000 units in 2010 and 2009. The Company’s medium-duty market share was 13.5% in 2010
compared to 15.9% in 2009.
In Europe, 2010 net sales and revenues increased to $3.19 billion from $2.52 billion in 2009. The 15-tonne and
above truck market in Western and Central Europe was 183,000 units compared to 168,000 units in 2009. The
Company’s market share was 15.2% in 2010 compared to 14.8% in 2009. DAF market share in the 6- to 15-tonne
market in 2010 was 7.7%, compared to 9.3% in 2009. The 6- to 15-tonne market in 2010 was 51,000 units,
comparable to 2009.
Net sales and revenues in Mexico, Australia and other countries outside the Company’s primary markets increased
to $1.63 billion in 2010 from $.91 billion in 2009 primarily due to higher sales from new truck deliveries in Mexico
($.44 billion) and Australia ($.19 billion) reflecting higher market demand.
