This excerpt taken from the NAV 10-Q filed Mar 11, 2009.
Sales and Revenues, net
Our sales and revenues are comprised of the following:
Our Truck segment was our largest segment as measured in sales and revenues, representing 69% and 64% of total consolidated sales and revenues for the three months ended January 31, 2009 and 2008, respectively. Sales and revenues increased within this segment by $179 million or 10% during the three months ended January 31, 2009 as compared to 2008. Our share of retail deliveries by traditional truck class in the bus, medium, and severe service classes continue to lead their markets with the greatest relative retail market share in each of their classes by brand. Furthermore, growth in our sales to the U.S. military, our largest customer, of $211 million contributed to the increase in overall sales and revenues during the first quarter of 2009 in the traditional market as compared to the same period in 2008. In addition, our decrease in ROW sales was a result of a decrease in Mexico sales due to lower financing of retail customers and dealers delaying purchase of new vehicles for inventory.
Our Engine segment sales and revenues were $509 million for the three months ended January 31, 2009 as compared to $786 million for the same period in 2008. The decrease in sales and revenues was primarily due to a decrease in Fords purchasing requirements of diesel engines and a decrease in demand for diesel engines from other customers partially offset by an increase in intersegment sales. The units shipped to Ford in North America
and ROW decreased by 28,600 units and 4,300 units, respectively, for the three months ended January 31, 2009 when compared to the same period in 2008. In accordance with the Ford Settlement, we will continue to be the exclusive producer of diesel engines for Ford F-Series and E-Series vehicles through December 31, 2009 in the U.S. and Canada. Intersegment engine sales increased during the first quarter 2009 as compared to the same period in 2008 primarily due to higher sales of our 11 liter and 13 liter MaxxForce engines in the traditional market. Our ROW sales declined in the first quarter of 2009 as compared to the prior period as a result of a decrease in South American engine sales.
Our Parts segment grew sales and revenues 35% in the three months ended January 31, 2009 as compared to the same period in 2008. This growth was due to expansion in our sales to the U.S. military, our largest customer, of $169 million which more than offset declines in demand from our other customers due to the current challenging economic environment.
Our Financial Services segment revenues declined by 20% in the first quarter of 2009 as compared to the same period in 2008 primarily as a result of a decrease in average finance receivables by $769 million to $3.0 billion. The decline in average finance receivables was primarily due to customer payments and a reduction in financing opportunities resulting from fewer sales of vehicles and components due to reduced customer demand, and the difficult credit environment.
This excerpt taken from the NAV 10-K filed Dec 30, 2008.
Sales and Revenues, net
In 2007, net sales and revenues decreased by 13% as compared to 2006. This decrease was attributed primarily to our Truck segment, which incurred decreased net sales and revenues of $2.2 billion as compared to 2006.
Our Truck segment was our largest segment as measured in net sales and revenues, representing 64% and 70% of total consolidated net sales and revenues for 2007 and 2006, respectively. Net sales and revenues decreased within this segment by 22% in 2007 as compared to 2006. In 2006, the Truck segment benefited from an increase in the overall traditional markets, which were experiencing an upswing in the cycle after rebounding from the bottom-of-the-cycle periods experienced in 2003 and immediately prior. The 2006 industry upswing was attributable, in part, to strong underlying economic growth and the need to replace aging fleets of trucks. In addition, we benefited from the pre-buy of 2006 vehicles prior to the introduction of the 2007 emissions-compliant vehicles. While our share of retail deliveries by traditional truck class fluctuated in 2007 and 2006, the Truck segments bus, medium and severe service classes all led their markets with the greatest relative retail market share in each of their classes by brand. Furthermore, price performance and growth in our expansion markets contributed, although to a lesser extent, to overall sales and revenue growth in 2006 and minimized the decline in sales and revenue in 2007. Growth in our expansion markets was primarily the result of growth in military sales and strength in the Mexican truck industry and other export markets.
Our Engine segment was our second largest segment in net sales and revenues with $3.5 billion in both 2007 and 2006. Despite a slight decrease in the relative ratio of diesel to gas trucks produced in the heavy-duty pickup truck market to 71% in 2007 from 72% in 2006, units shipped to Ford in North America significantly decreased by 72,900 units or 26% compared to the prior year due to a reduction in Fords purchasing requirements. In addition, the Engine segment also saw a decline in non-Ford OEM sales, including intersegment sales, resulting from the conversion to the 2007 emissions-compliant engines and the pre-builds of the 2006 engines in anticipation of the conversion. The decline in volume in 2007 was offset by price increases related to our 2007 emissions-compliant engines.
Our Parts segment grew net sales 3% in 2007 as compared to 2006. This growth was primarily due to the execution of our strategies to focus on expansion markets and to enhance our relationships with large fleets.
Our Financial Services segment grew net revenues 12% in 2007 as compared to 2006. Contributing to this revenue growth was a more attractive purchase financing environment for equipment users influenced by lower net interest rates, greater industry sales incentives, and a stronger used vehicle market. The shift from a strong operating lease environment to a purchase financing environment that began in 2006 was evidenced by a further decrease in rental income of 19% in 2007 compared to 2006. During 2007, proceeds from the sale of receivables, net of issuance costs, amounted to $887 million compared to $1.6 billion of net proceeds from the sale of receivables in 2006.