10. Truck Markets and Customers Top Truck Customers 2009 Based on FY09 Sales North America 33% Europe 43% Asia Pacific 10% South America 14% Customer North America South America Europe √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
17. Aftermarket & Trailer North American Trailer Production U.S. Truck Freight Ton Miles Seasonally Adjusted Source: FTR Associates Source: FTR Associates Source: 2004-08 CLEAR data; 2009-12 blended data Europe Trailer Production Based on FY09 Sales
Editor's Notes
Refer to slide
Now that we’ve divested most of our Light Vehicle businesses and our transformation is solidly underway, we’ve revised our reporting segments. In place of our two previous operating segments, LVS and CVS, we’ll now report through the following four segments within continuing operations: - Commercial Truck - Industrial - Aftermarket and Trailer, and - Light Vehicle Systems We refer to the first three segments as our “Core Business”.
Our key goal is to invest in and focus on growing product segments in our core businesses that offer favorable margins and the highest returns. In the Commercial Truck segment our strategy is to grow this business by: - Further expanding our global brake leadership position; - Investing in advanced technologies that will improve fuel efficiency and vehicle safety, and - Strengthening our electronics and controls capabilities We also will be focusing on growing our Commercial Truck share in the markets we serve, primarily expanding our customer base in regions outside of North America.
In the Industrial segment we’ll focus on: - Successfully growing our global off-highway, industrial and defense businesses, by expanding our product portfolio and customer base; - Growing market share in Asia Pacific, and - Investing in new engineering and technology capabilities in China and India
With the Aftermarket & Trailer segment, we’ll concentrate on: Growth by: - Further expanding our product portfolio and our remanufacturing business; - Capturing additional opportunities in emerging markets, primarily in the BRIC countries, and - Continuing to expand our global distribution network and systems infrastructure
For the Light Vehicle Systems segment, our plans are to continue to evaluate alternatives on how best to exit for the remaining LVS businesses. At the same time, we remain committed to making the necessary investments to support the needs and requirements of our light vehicle customers.
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I’m proud of the many accomplishments we made during the year despite the challenges we faced. We never lost sight of our overarching strategy to transform the company with a focus on the global commercial vehicle and industrial markets. We’re now a leaner and more efficient company and we’re well-positioned for growth. I’m very proud of how quickly our people adapted to the downturn. It was through the aggressive cost cutting initiatives we implemented as well as the tremendous performance we achieved in working capital that we were able to successfully manage through this unprecedented challenging time. We streamlined our core Commercial and Industrial business by eliminating approximately $195 million of total cost for our fiscal year. What’s important to note is that we’ve taken out about $136 million on our overall structural cost on a run-rate basis. We remained committed to continue to invest in our future by making investments in engineering, research and development and in the necessary capital expenditures to maintain our high standards. We recently announced the completion of the sale of our Light Vehicle Wheels business and that we’ve substantially completed the divestiture of the Light Vehicle Chassis business.
I’m proud of the many accomplishments we made during the year despite the challenges we faced. We never lost sight of our overarching strategy to transform the company with a focus on the global commercial vehicle and industrial markets. We’re now a leaner and more efficient company and we’re well-positioned for growth. I’m very proud of how quickly our people adapted to the downturn. It was through the aggressive cost cutting initiatives we implemented as well as the tremendous performance we achieved in working capital that we were able to successfully manage through this unprecedented challenging time. We streamlined our core Commercial and Industrial business by eliminating approximately $195 million of total cost for our fiscal year. What’s important to note is that we’ve taken out about $136 million on our overall structural cost on a run-rate basis. We remained committed to continue to invest in our future by making investments in engineering, research and development and in the necessary capital expenditures to maintain our high standards. We recently announced the completion of the sale of our Light Vehicle Wheels business and that we’ve substantially completed the divestiture of the Light Vehicle Chassis business.
I’m proud of the many accomplishments we made during the year despite the challenges we faced. We never lost sight of our overarching strategy to transform the company with a focus on the global commercial vehicle and industrial markets. We’re now a leaner and more efficient company and we’re well-positioned for growth. I’m very proud of how quickly our people adapted to the downturn. It was through the aggressive cost cutting initiatives we implemented as well as the tremendous performance we achieved in working capital that we were able to successfully manage through this unprecedented challenging time. We streamlined our core Commercial and Industrial business by eliminating approximately $195 million of total cost for our fiscal year. What’s important to note is that we’ve taken out about $136 million on our overall structural cost on a run-rate basis. We remained committed to continue to invest in our future by making investments in engineering, research and development and in the necessary capital expenditures to maintain our high standards. We recently announced the completion of the sale of our Light Vehicle Wheels business and that we’ve substantially completed the divestiture of the Light Vehicle Chassis business.