Trucker News

 

Kenworth Truck - By the Numbers

Since 1923, Kenworth has been producing quality trucks. Changing with the times, Kenworth has evolved to meet the demands of the trucking industry, focusing on custom-built vehicles to meet specific needs. The first truck manufacturer to produce diesel vehicles, Kenworth has always been on the cutting edge of large truck production.

In the past ten years, Kenworth's sales figures have reflected the desire of customers to purchase a product that stands for quality and flexibility. Despite fluctuations in the market and trucking industry, Kenworth continues to post strong sales figures and the company continues to retain net value.

The figures for the past ten years reflect various outside influences over the trucking industry in general. Between 2000 and 2006, there was an inflationary climb in prices for all industries, which peaked in late 2006. This was especially true for the trucking industry, which, after the September 11 terrorist attacks, became even more involved in interstate commerce. Further, with fewer people traveling, more goods had to be shipped to local stores, giving the trucking industry a further boost. However, this climb in business came to a halt with the sudden spiking of fuel prices, especially diesel fuel. After that, prices began to plunge as the economy entered a recessionary period, characterized by layoffs and general lack of spending. By 2009, the economy seemed to have reached its lowest point, and is predicted to recover and begin to climb again, beginning this year.

Between 2000 and 2001, Kenworth experienced a dip in sales due to the general market economy. In 2000, Paccar, the parent company producing Kenworth vehicles, posted net sales of $7.5 billion. By 2001, that figure had dropped to $5.6 billion. However, rebounding from the downturn, Kenworth climbed steadily for the next few years: $6.8 billion in 2002, $7.7 billion in 2003, and $10.8 billion in 2004. By 2005, Kenworth had climbed to $13.3 billion, and by 2006 reached net sales of $15.5 billion, over twice its 2000 revenue.

With the economy spiraling downward once again, Kenworth's sales figures began to drop in 2007, posting at $14 billion that year and dropping to $13.7 billion in 2008. Last year, 2009, saw a drastic drop in sales to $7 billion. With the fuel crisis and the general malaise of the economy, sales figures were bound to go down; the good news seems to be that Kenworth has great plans for the future. The introduction in April of the Kenworth T700 and the PACCAAR MX Engine Road Tour is predicted to boost sales for the next two quarters of 2010.

Perhaps more important than net sales figures are the figures for the net profitability of the company. The company has consistently posted figures of profitability during this period, ranging from a low of $110 million in 2009 to a high of $1.5 billion in 2006.

New Kenworth vehicles tend to retain their resale value, as well. For example, a Kenworth T2000 tends to lose about $10,000 a year off its original sale price; a 2000 vehicle currently lists for between $14,000 and $24,000, depending on its features.