Meritor's Corporate Customers have recorded an increase in their cost of revenue by 15.25 % in the 3 quarter 2022 year on year, sequentially costs of revenue were trimmed by -52.9 %. During the corresponding time, Meritor Inc. recorded a revenue increase by 19.29 % year on year, sequentially revenue grew by 5.03 %. While revenue at the Meritor Inc.'s corporate clients recorded rose by 18.57 % year on year, sequentially revenue fell by -50.32 %.
Meritor's Customers have recorded an increase in their cost of revenue by 15.25 % in the 3 quarter 2022 year on year, sequentially costs of revenue were trimmed by -52.9 %, for the same period Meritor Inc. recorded revenue increase by 19.29 % year on year, sequentially revenue grew by 5.03 %.
Meritor's Comment on Sales, Marketing and Customers
Meritor has numerous customers worldwide and has developed long-standing business
relationships with many of these customers. Our ten largest customers accounted
for approximately 75 percent of our total sales from continuing operations. Sales
to AB Volvo, Daimler AG and Navistar International Corporation represented approximately
24 percent, 20 percent and 11 percent, respectively, of our sales.
Original Equipment Manufacturers (OEMs)
In North America, we design, engineer, market and sell products principally
to OEMs, dealers and distributors. While our North American sales are typically
direct to the OEMs, our ultimate commercial truck customers include trucking
and transportation fleets. Fleet customers may specify our components and integrated
systems for installation in the vehicles they purchase from OEMs. We employ
what we refer to as a “push-pull” marketing strategy. We “push”
for being the standard product at the OEM. At the same time, our district field
managers then call on fleets and OEM dealers to “pull-through” our
components on specific truck purchases. For all other markets, we specifically
design, engineer, market and sell products principally to OEMs for their market-specific
needs or product specifications.
For certain large OEM customers, our supply arrangements are generally negotiated
on a long-term contract basis for a multi-year period that may require us to
provide annual cost reductions through price reductions or other cost benefits
for the OEMs. If we are unable to generate sufficient cost savings in the future
to offset such price reductions, our gross margins will be adversely affected.
Sales to other OEMs are typically made through open order releases or purchase
orders at market-based prices that do not require the purchase of a minimum
number of products. The customer typically has the right to cancel or delay
these orders on reasonable notice. We typically compete to either retain business
or try to win new business from OEMs when long-term contracts expire.
We have established leading positions in many of the markets we serve as a global
supplier of a broad range of drivetrain systems, brakes and components. Based
on available industry data and internal company estimates, our market-leading
positions include independent truck drive axles (i.e. those manufactured by
an independent, non-captive supplier) in North America, Europe, South America
and India; truck drivelines in North America; truck air brakes in North America
and South America (through a joint venture); and military wheeled vehicle drivetrains,
suspensions and brakes in North America.
Our global customer portfolio includes companies such as AB Volvo, Daimler AG,
Navistar International Corporation, Oshkosh, MAN, Iveco, PACCAR, Ashok Leyland,
Scania, XCMG and Ford.
Aftermarket
We market and sell truck, trailer, off-highway and other products principally
to, and service such products principally for, OEMs, their parts marketing operations,
their dealers and other independent distributors and service garages within
the aftermarket industry. Our product sales are generated through long-term
agreements with certain of our OEM customers and distribution agreements and
sales to independent dealers and distributors. Sales to other OEMs are typically
made through open order releases or purchase orders at market based prices which
do not require the purchase of a minimum number of products. The customer typically
has the right to cancel or delay these orders on reasonable notice.
Our product offerings allow us to service all stages of our customers’
vehicle ownership lifecycle. In North America, we stock and distribute hundreds
of parts from top national brands to our customers or what we refer to as our
“all makes” strategy. Our district field managers call on our OEM
and independent customers to market our full product line capabilities on a
regular basis to seek to ensure that we satisfy our customers’ needs.
Our aftermarket business sells products under the following brand names: Meritor;
Meritor Wabco; Euclid; Trucktechnic; and Meritor AllFit.
Based on available industry data and internal company estimates, we believe
our North America aftermarket business has the overall market leadership position
for the portfolio of products that we offer.
Meritor’s Comment on Sales, Marketing and Customers
Meritor has numerous customers worldwide and has developed long-standing business
relationships with many of these customers. Our ten largest customers accounted
for approximately 75 percent of our total sales from continuing operations. Sales
to AB Volvo, Daimler AG and Navistar International Corporation represented approximately
24 percent, 20 percent and 11 percent, respectively, of our sales.
Original Equipment Manufacturers (OEMs)
In North America, we design, engineer, market and sell products principally
to OEMs, dealers and distributors. While our North American sales are typically
direct to the OEMs, our ultimate commercial truck customers include trucking
and transportation fleets. Fleet customers may specify our components and integrated
systems for installation in the vehicles they purchase from OEMs. We employ
what we refer to as a “push-pull” marketing strategy. We “push”
for being the standard product at the OEM. At the same time, our district field
managers then call on fleets and OEM dealers to “pull-through” our
components on specific truck purchases. For all other markets, we specifically
design, engineer, market and sell products principally to OEMs for their market-specific
needs or product specifications.
For certain large OEM customers, our supply arrangements are generally negotiated
on a long-term contract basis for a multi-year period that may require us to
provide annual cost reductions through price reductions or other cost benefits
for the OEMs. If we are unable to generate sufficient cost savings in the future
to offset such price reductions, our gross margins will be adversely affected.
Sales to other OEMs are typically made through open order releases or purchase
orders at market-based prices that do not require the purchase of a minimum
number of products. The customer typically has the right to cancel or delay
these orders on reasonable notice. We typically compete to either retain business
or try to win new business from OEMs when long-term contracts expire.
We have established leading positions in many of the markets we serve as a global
supplier of a broad range of drivetrain systems, brakes and components. Based
on available industry data and internal company estimates, our market-leading
positions include independent truck drive axles (i.e. those manufactured by
an independent, non-captive supplier) in North America, Europe, South America
and India; truck drivelines in North America; truck air brakes in North America
and South America (through a joint venture); and military wheeled vehicle drivetrains,
suspensions and brakes in North America.
Our global customer portfolio includes companies such as AB Volvo, Daimler AG,
Navistar International Corporation, Oshkosh, MAN, Iveco, PACCAR, Ashok Leyland,
Scania, XCMG and Ford.
Aftermarket
We market and sell truck, trailer, off-highway and other products principally
to, and service such products principally for, OEMs, their parts marketing operations,
their dealers and other independent distributors and service garages within
the aftermarket industry. Our product sales are generated through long-term
agreements with certain of our OEM customers and distribution agreements and
sales to independent dealers and distributors. Sales to other OEMs are typically
made through open order releases or purchase orders at market based prices which
do not require the purchase of a minimum number of products. The customer typically
has the right to cancel or delay these orders on reasonable notice.
Our product offerings allow us to service all stages of our customers’
vehicle ownership lifecycle. In North America, we stock and distribute hundreds
of parts from top national brands to our customers or what we refer to as our
“all makes” strategy. Our district field managers call on our OEM
and independent customers to market our full product line capabilities on a
regular basis to seek to ensure that we satisfy our customers’ needs.
Our aftermarket business sells products under the following brand names: Meritor;
Meritor Wabco; Euclid; Trucktechnic; and Meritor AllFit.
Based on available industry data and internal company estimates, we believe
our North America aftermarket business has the overall market leadership position
for the portfolio of products that we offer.
Sources:
Meritor Inc.’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
Focus of this report: Meritor Inc.’s corporate clients.
For your research, we’ve provided 9 tables on Meritor Inc. corporate clients.
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