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AN » Topics » Premium Luxury

This excerpt taken from the AN 10-K filed Feb 17, 2010.

Premium Luxury

The Premium Luxury segment operating results included the following:

 

($ in millions)   Years Ended December 31,
      2009           2008       Variance
Favorable /
  (Unfavorable)  		   %
  Variance  		       2007       Variance
Favorable /
  (Unfavorable)  		   %
  Variance  

Revenue

     $     3,073.1     $     3,629.5     $ (556.4)   (15.3)     $     4,248.9     $ (619.4)   (14.6)

Segment income

     $ 175.5     $ 183.7     $ (8.2)   (4.5)     $ 225.3     $ (41.6)   (18.5)

Retail new vehicle unit sales

     31,922     40,128     (8,206)   (20.4)     47,824     (7,696)   (16.1)

2009 compared to 2008

Premium Luxury revenue decreased $556.4 million or 15.3% during 2009, as compared to 2008, primarily due to lower vehicle sales and a decrease in revenue per new vehicle retailed, reflecting the challenging automotive retail environment. Although full year 2009 Premium Luxury new and used vehicle sales were lower compared to the prior year, Premium Luxury new and used vehicle sales increased in the fourth quarter of 2009 compared to the same period in 2008.

Premium Luxury segment income decreased $8.2 million or 4.5% during 2009, as compared to 2008, primarily due to lower vehicle sales, in addition to margin compression as a result of a decrease in the average revenue per new vehicle retailed. Premium Luxury segment income as a percentage of segment revenue in 2009, as compared to 2008, benefited from a mix shift toward higher margin parts and service business, a reduction in selling, general, and administrative expenses, and a reduction in floorplan interest expense.

2008 compared to 2007

Premium Luxury revenue decreased $619.4 million or 14.6% during 2008, as compared to 2007, primarily due to lower vehicle sales and a decrease in revenue per vehicle retailed. The results for our Premium Luxury segment were adversely affected by a shift in consumer demand toward lower-priced premium luxury vehicles. This shift in demand was caused by the difficult economic conditions, as well as several premium luxury manufacturers launching and promoting lower-priced vehicles during 2008.

Premium Luxury segment income decreased $41.6 million or 18.5% during 2008, as compared to 2007, primarily due to margin compression as a result of the shift in consumer demand toward lower-priced premium luxury vehicles.

 

40

Table of Contents
These excerpts taken from the AN 10-K filed Feb 17, 2009.
Premium Luxury
 
The Premium Luxury segment operating results included the following:
 
                                                         
    Years Ended December 31,  
                Variance
 		                Variance
 		       
                Favorable/
 		                Favorable/
 		       
    2008     2007     (Unfavorable)     % Variance     2006     (Unfavorable)     % Variance  
($ in millions)                                          
 
Revenue
  $ 3,645.2     $ 4,272.8     $ (627.6 )     (14.7 )   $ 4,173.5     $ 99.3       2.4  
Segment income
  $ 184.2     $ 226.2     $ (42.0 )     (18.6 )   $ 231.0     $ (4.8 )     (2.1 )
Retail new vehicle unit sales
    40,226       48,068       (7,842 )     (16.3 )     47,954       114       0.2  
 
Premium Luxury revenue decreased $627.6 million or 14.7% during 2008, as compared to 2007, primarily due to lower vehicle sales and a decrease in revenue per vehicle retailed. The results for our Premium Luxury segment were adversely affected by a shift in consumer demand toward lower-priced premium luxury vehicles. This shift in demand was caused by the difficult economic conditions, as well as several premium luxury manufacturers launching and promoting lower-priced vehicles during 2008. Premium Luxury segment income decreased $42.0 million or 18.6% during 2008, as compared to 2007, primarily due to margin compression as a result of the shift in consumer demand toward lower-priced premium luxury vehicles.
 
Premium Luxury revenue increased $99.3 million or 2.4% during 2007, as compared to 2006, primarily due to higher vehicle sales and an increase in revenue per vehicle retailed. Premium Luxury segment income decreased $4.8 million or 2.1% during 2007, as compared to 2006, primarily due to margin compression.


41

 

Premium
Luxury


 



The Premium Luxury segment operating results included the
following:


 










































































































































































































































                                                         

 

 

Years Ended December 31,

 

 

 

 

 

 

 

 

 

Variance



 

 

 

 

 

 

 

 

Variance



 

 

 

 

 

 

 

 

 

 

 

 

Favorable/



 

 

 

 

 

 

 

 

Favorable/



 

 

 

 

 

 

2008

 

 

2007

 

 

(Unfavorable)

 

 

% Variance

 

 

2006

 

 

(Unfavorable)

 

 

% Variance

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 


Revenue


 

$

3,645.2

 

 

$

4,272.8

 

 

$

(627.6

)

 

 

(14.7

)

 

$

4,173.5

 

 

$

99.3

 

 

 

2.4

 


Segment income


 

$

184.2

 

 

$

226.2

 

 

$

(42.0

)

 

 

(18.6

)

 

$

231.0

 

 

$

(4.8

)

 

 

(2.1

)


Retail new vehicle unit sales


 

 

40,226

 

 

 

48,068

 

 

 

(7,842

)

 

 

(16.3

)

 

 

47,954

 

 

 

114

 

 

 

0.2

 






 



Premium Luxury revenue decreased $627.6 million or 14.7%
during 2008, as compared to 2007, primarily due to lower vehicle
sales and a decrease in revenue per vehicle retailed. The
results for our Premium Luxury segment were adversely affected
by a shift in consumer demand toward lower-priced premium luxury
vehicles. This shift in demand was caused by the difficult
economic conditions, as well as several premium luxury
manufacturers launching and promoting lower-priced vehicles
during 2008. Premium Luxury segment income decreased
$42.0 million or 18.6% during 2008, as compared to 2007,
primarily due to margin compression as a result of the shift in
consumer demand toward lower-priced premium luxury vehicles.


 



Premium Luxury revenue increased $99.3 million or 2.4%
during 2007, as compared to 2006, primarily due to higher
vehicle sales and an increase in revenue per vehicle retailed.
Premium Luxury segment income decreased $4.8 million or
2.1% during 2007, as compared to 2006, primarily due to margin
compression.





41




 







EXCERPTS ON THIS PAGE:

10-K
Feb 17, 2010
10-K (2 sections)
Feb 17, 2009

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