Meritor Acquisition and 2022 Financial Results
Table of Contents
Sales for our Distribution segment by product line were as follows:
In millions
Parts
Engines
Power generation
Service
Total sales
2022 vs. 2021
Sales
Favorable/(Unfavorable)
Years ended December 31,
2022 vs. 2021
2021 vs. 2020
2022
2021
2020
Amount
Percent
Amount
Percent
$
3,818 $
3,145 $
2,931
$
673
21 % $
214
7 %
1,776
1,499
1,250
277
18 %
249
20 %
1,774
1,762
1,692
12
1 %
70
4 %
1,561
1,366
1,263
195
14 %
103
8 %
$
8,929 $
7,772 $
7,136 $
1,157
15 % $
636
9 %
Distribution segment sales increased $1.2 billion across all product lines primarily due to $1.0 billion of increased North American sales representing 90 percent of the total
change in Distribution segment sales, largely due to higher demand for parts and engines. The increase was partially offset by unfavorable foreign currency fluctuations, mainly
in the Euro, Australian dollar, Indian rupee, Japanese yen and Canadian dollar.
Segment EBITDA
Distribution segment EBITDA increased $157 million, primarily due to higher volumes, partially offset by unfavorable foreign currency fluctuations (principally in emerging
market currencies, South African rand, Australian dollar and Japanese yen), costs associated with the suspension of our Russian operations, increased freight costs due to supply
chain constraints, higher compensation expenses and an inventory write-off. See NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for
additional information.
Power Systems Segment Results
Financial data for the Power Systems segment was as follows:
In millions
External sales
Intersegment sales
Total sales
Research, development and engineering expenses
Equity, royalty and interest income from investees
Interest income
Russian suspension costs (¹)
Segment EBITDA
Segment EBITDA as a percentage of total sales
"NM" not meaningful information
Favorable/(Unfavorable)
Years ended December 31,
2022 vs. 2021
2021 vs. 2020
2022
2021
2020
Amount
Percent
Amount
Percent
$
2,951
$
2,082
2,650 $
1,765
2,055
S
301
11 % $ 595
29%
1,576
317
18 %
189
12 %
5,033
4,415
3,631
618
14 %
784
22 %
240
234
212
(6)
(3)%
(22)
(10)%
43
56
21
(13)
(23)%
35
NM
7
5
4
2
40 %
1
25%
19
19
NM
%
596
496
343
100
20 %
153
45 %
11.8
%
11.2
%
9.4
%
Percentage Points
0.6
Percentage Points
1.8
(1) See NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information.
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