PACCAR 2011 Annual Report Download - page 35

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The major factors for the change in net sales and revenues, cost of sales and revenues, and gross margin between
2010 and 2009 follow:
NET COST GROSS
($ in millions) SALES OF SALES MARGIN
2009 $ 6,994.0 $ 6,414.9 $ 579.1
Increase (decrease)
Truck delivery volume 1,410.7 1,189.3 221.4
Average truck sales prices 523.1 523.1
Average per truck material, labor, and other direct costs 256.5 (256.5)
Factory overhead, warehouse and other indirect costs 89.7 (89.7)
Aftermarket parts volume 266.7 176.0 90.7
Average aftermarket parts sales prices 51.3 51.3
Average aftermarket parts direct costs 12.5 (12.5)
Currency translation (8.5) (13.4) 4.9
Total increase 2,243.3 1,710.6 532.7
2010 $ 9,237.3 $ 8,125.5 $ 1,111.8
•฀ ฀The฀higher฀truck฀delivery฀volume฀reflects฀improved฀market฀demand฀which฀also฀resulted฀in฀an฀increase฀of฀$523.1฀
million from higher average truck sales prices.
•฀ ฀In฀addition,฀there฀was฀an฀increase฀in฀cost฀of฀sales฀of฀$256.5฀million฀due฀to฀a฀higher฀average฀cost฀per฀truck,฀
primarily from the effect of higher content EPA 2010 emission vehicles in the U.S. and Canada.
•฀ ฀Factory฀overhead,฀warehouse฀and฀other฀indirect฀costs฀increased฀$89.7฀million฀primarily฀due฀to฀higher฀supplies฀
and maintenance ($38.6 million) and salaries and related costs ($16.5 million) to support higher production
levels.
•฀ ฀Higher฀market฀demand฀also฀improved฀aftermarket฀parts฀sales฀volume฀by฀$266.7฀million฀and฀related฀cost฀of฀sales฀
by $176.0 million.
•฀ ฀Average฀aftermarket฀parts฀sales฀prices฀increased฀by฀$51.3฀million฀reflecting฀improved฀price฀realization.฀
•฀ ฀The฀currency฀translation฀effect฀on฀sales฀and฀cost฀of฀sales฀was฀not฀significant฀as฀a฀weaker฀euro฀and฀British฀pound฀
was offset by stronger Canadian and Australian dollars.
Net฀sales฀and฀revenues฀and฀gross฀margins฀for฀truck฀units฀and฀aftermarket฀parts฀are฀summarized฀below.฀The฀
aftermarket parts gross margin includes direct revenues and costs, but excludes certain truck costs.
($ in millions)
Year ended December 31, 2010 2009 % CHANGE
Truck net sales and revenues:
Trucks $ 7,042.9 $ 5,103.3 38
Aftermarket parts 2,194.4 1,890.7 16
$ 9,237.3 $ 6,994.0 32
Gross margin:
Trucks $ 366.1 $ (46.6) *
Aftermarket parts 745.7 625.7 19
$ 1,111.8 $ 579.1 92
Gross margin %:
Trucks 5.2% (.9)%
Aftermarket parts 34.0% 33.1 %
12.0% 8.3 %
* Percentage not meaningful
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