PACCAR Inc NASDAQ: PCAR is the third largest manufacturer of heavy-duty trucks in the world (after Daimler AG and Volvo), and has substantial manufacture in light and medium vehicles through its various subsidiaries.
PACCAR Inc (PACCAR), incorporated in 1971, is engaged in the design, manufacture and customer support of light, medium and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also provides customized financial services, information technology and truck parts related to its principle business. The Company operates in two segments: design, manufacture and distribution of light-, medium- and heavy-duty trucks and related aftermarket parts, and finance and leasing products and services provided to customers and dealers. Its finance and leasing activities are principally related to its products and associated equipment. Other manufactured products include industrial winches.
Trucks
PACCAR and its subsidiaries designs and manufactures heavy-duty diesel trucks, which are marketed under the Kenworth, Peterbilt and DAF nameplates. These trucks, which are built in three plants in the United States, three in Europe and one each in Australia, Canada and Mexico, are used for over-the-road and off-highway hauling of freight, petroleum, wood products, construction and other materials. These trucks are assembled at facilities in Ste. Therese, Canada and in Mexicali, Mexico, which are operated by the Company’s wholly owned subsidiaries. During the year ended December 31, 2010, Commercial trucks and related aftermarket parts of the Company accounted for 89.7% of total net revenues. The Truck and Other businesses include a division of the Company, which manufactures industrial winches in two United States plants and markets them under the Braden, Carco, and Gearmatic nameplates.
Financial Services
In North America, Australia and 16 European countries, PACCAR provides financing and leasing arrangements, principally for its manufactured trucks, through wholly owned finance companies operating under the PACCAR Financial trade name. They provide inventory financing for independent dealers selling PACCAR products, and retail loan and lease financing for new and used trucks and other transportation equipment sold principally by its independent dealers. Receivables are secured by the products financed or leased. The Company also conducts service leasing operations through wholly owned subsidiaries in North America and Germany under the PacLease trade name. Selected dealers in North America are franchised to provide service leasing. It provides its franchisees equipment financing and administrative support. The Company also operates service lease outlets on its own behalf.
The cyclical nature of truck sales again plagued the company in the early 1990s. As demand for trucks fell, so did PACCAR's sales. From a high of $3.5 billion in 1989, revenues fell to $2.8 billion in 1990 and then to $2.3 billion in 1991. The company managed to remain profitable, however, with net income falling from $242 million in 1989 to $40 million in 1991. The company avoided red ink in part by laying off 11 percent of its employees in 1990. PACCAR Automotive also cut back its operations in 1991 when it abandoned its wholesale auto parts sales to focus on its retail outlets.
PACCAR's finances improved slightly in 1992, when profits rose to $65 million. That year the company added to its oil field equipment manufacturing with the purchase of a 21 percent stake in Wood Group ESP.
The cycle rolled back upward in the mid-1990s, when aging fleets needed replacement and interest rates were relatively low. PACCAR enjoyed a series of record years, with revenues rising to $3.5 billion in 1993, $4.5 billion in 1994, and $4.8 billion in 1995. Profits rose commensurately, reaching $253 million in 1995. Robert Stovall, in a 1994 Financial World article, named PACCAR "the premier long-term investment in the heavy hauling business."
The prosperity encouraged expansion, and in 1993 PACCAR acquired a line of winches from heavy equipment manufacturer Caterpillar. The same year it brought a new plant in Washington on line to help meet the increased demand for trucks. In 1994 the company began selling in New Zealand for the first time and entered new countries in Asia and Central and South America. The company made its Mexican joint venture VILPAC, S.A., a wholly owned subsidiary in 1995.
In 1996 industrywide truck sales were down 25 percent from the year before. PACCAR responded by cutting back on production: It shut down truck manufacturing at a Seattle plant and closed a plant in Quebec that had been hurt by a strike the year before. The company's control over the heavy truck manufacturer VILPAC came in handy when PACCAR was able to move some of the Canadian production to the Mexican facilities.
PACCAR greatly expanded its presence in Europe in the late 1990s. In 1996 the company spent $543 million to acquire DAF Trucks N.V. Based in the Netherlands, DAF sold over 24,000 trucks in Europe in 1996 and employed around 5,000 people. In 1998 PACCAR bought Leyland Trucks Ltd., an acquisition it first pursued back in the mid-1980s. Founded in 1896, Leyland Trucks brought over 100 years of experience and 1997 sales of $272 million to PACCAR. The acquisitions were funded in part by the sale of Trico Industries, PACCAR's oil field equipment manufacturer, to EVI in 1997.
The acquisitions helped push PACCAR's revenues to $6.5 billion in 1997. Net income also increased, leaping 71 percent from the year before to approximately $345 million. Although truck sales were up, PACCAR's other businesses contributed to the company's prosperity. Earnings from retail automotive parts rose, and the company boasted 143 A1's Auto and Grand Auto stores by 1998. Financial and leasing subsidiaries also performed well in the late 1990s.
Principal Subsidiaries: DAF Trucks N.V.; Leyland Trucks Ltd.; PACCAR Automotive, Inc.; PACCAR of Canada, Ltd.; PACCAR Financial Corp.; PACCAR Financial Limited (U.K.); PACCAR Leasing Corporation; PACCAR Australia Pty. Ltd.; PACCAR Sales North America, Inc.; PACCAR Financial Pty. Ltd.; PACCAR Financial Services Ltd. (Canada); VILPAC, S.A. (Mexico).
Principal Divisions: Dynacraft; Kenworth Truck Company; PACCAR Parts; PACCARTechnical Center; PACCAR Winch Division; Peterbilt Motors Co.; PACCAR International.
Based in Bellevue, Washington, in the Seattle Metropolitan area. It was founded in 1905 by William Pigott, Sr., as the Seattle Car Manufacturing Company. Its original business was the production of railway and logging equipment. Upon a subsequent merger with a Portland, Oregon, firm, Twohy Brothers, Seattle Car Manufacturing Company became the Pacific Car and Foundry Company.
PACCAR Inc (PACCAR), incorporated in 1971, is engaged in the design, manufacture and customer support of light, medium and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also provides customized financial services, information technology and truck parts related to its principle business. The Company operates in two segments: design, manufacture and distribution of light-, medium- and heavy-duty trucks and related aftermarket parts, and finance and leasing products and services provided to customers and dealers. Its finance and leasing activities are principally related to its products and associated equipment. Other manufactured products include industrial winches.
Trucks
PACCAR and its subsidiaries designs and manufactures heavy-duty diesel trucks, which are marketed under the Kenworth, Peterbilt and DAF nameplates. These trucks, which are built in three plants in the United States, three in Europe and one each in Australia, Canada and Mexico, are used for over-the-road and off-highway hauling of freight, petroleum, wood products, construction and other materials. These trucks are assembled at facilities in Ste. Therese, Canada and in Mexicali, Mexico, which are operated by the Company’s wholly owned subsidiaries. During the year ended December 31, 2010, Commercial trucks and related aftermarket parts of the Company accounted for 89.7% of total net revenues. The Truck and Other businesses include a division of the Company, which manufactures industrial winches in two United States plants and markets them under the Braden, Carco, and Gearmatic nameplates.
Financial Services
In North America, Australia and 16 European countries, PACCAR provides financing and leasing arrangements, principally for its manufactured trucks, through wholly owned finance companies operating under the PACCAR Financial trade name. They provide inventory financing for independent dealers selling PACCAR products, and retail loan and lease financing for new and used trucks and other transportation equipment sold principally by its independent dealers. Receivables are secured by the products financed or leased. The Company also conducts service leasing operations through wholly owned subsidiaries in North America and Germany under the PacLease trade name. Selected dealers in North America are franchised to provide service leasing. It provides its franchisees equipment financing and administrative support. The Company also operates service lease outlets on its own behalf.
OVERALL
Beta: 1.34
Market Cap (Mil.): $19,494.12
Shares Outstanding (Mil.): 365.47
Annual Dividend: 0.48
Yield (%): 0.90
FINANCIALS
PCAR.O Industry Sector
P/E (TTM): 33.57 22.98 18.26
EPS (TTM): 277.37 -- --
ROI: 5.88 8.45 3.74
ROE: 10.85 13.46 6.60
Statistics:
Public Company
Incorporated: 1924 as Pacific Car & Foundry Company
Employees: 17,000
Sales: $6.75 billion (1997)
Stock Exchanges: NASDAQ
Ticker Symbol: PCAR
SICs: 3711 Motor Vehicles & Car Bodies; 5531 Auto & Home Supply Stores; 7513 Truck Rental & Leasing, Without Drivers; 6719 Holding Companies, Not Elsewhere Classified
Name Age Since Current Position
Pigott, Mark 57 1997 Chairman of the Board, Chief Executive Officer
Armstrong, Ronald 55 2010 President
Sobic, Daniel 57 2008 Executive Vice President
Christensen, Robert 54 2010 Executive Vice President
Quinn, Thomas 49 2009 Vice President, Chief Information Officer
Barkley, Michael 55 2007 Vice President, Controller
Schippers, Harrie 50 2011 Vice President
Means, Samuel 69 2011 Vice President
Bengston, Robert 55 2011 Vice President
Anderson, David 57 2005 Vice President, General Counsel
Plimpton, Thomas 61 2008 Vice Chairman of the Board
Parry, Robert 71 2004 Director
Carnwath, Alison 58 2005 Director
Williamson, Charles 62 2006 Director
Spierkel, Gregory 54 2008 Director
Staley, Warren 68 2008 Director
Pigott, John 47 2009 Director
Fluke, John 68 1984 Independent Director
Page, Stephen 71 2004 Independent Director
Hachigian, Kirk 51 2008 Independent Director
Address:
PACCAR Building
777 106th Avenue NE
Bellevue, Washington 98004
U.S.A.
PACCAR Inc (PACCAR), incorporated in 1971, is engaged in the design, manufacture and customer support of light, medium and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also provides customized financial services, information technology and truck parts related to its principle business. The Company operates in two segments: design, manufacture and distribution of light-, medium- and heavy-duty trucks and related aftermarket parts, and finance and leasing products and services provided to customers and dealers. Its finance and leasing activities are principally related to its products and associated equipment. Other manufactured products include industrial winches.
Trucks
PACCAR and its subsidiaries designs and manufactures heavy-duty diesel trucks, which are marketed under the Kenworth, Peterbilt and DAF nameplates. These trucks, which are built in three plants in the United States, three in Europe and one each in Australia, Canada and Mexico, are used for over-the-road and off-highway hauling of freight, petroleum, wood products, construction and other materials. These trucks are assembled at facilities in Ste. Therese, Canada and in Mexicali, Mexico, which are operated by the Company’s wholly owned subsidiaries. During the year ended December 31, 2010, Commercial trucks and related aftermarket parts of the Company accounted for 89.7% of total net revenues. The Truck and Other businesses include a division of the Company, which manufactures industrial winches in two United States plants and markets them under the Braden, Carco, and Gearmatic nameplates.
Financial Services
In North America, Australia and 16 European countries, PACCAR provides financing and leasing arrangements, principally for its manufactured trucks, through wholly owned finance companies operating under the PACCAR Financial trade name. They provide inventory financing for independent dealers selling PACCAR products, and retail loan and lease financing for new and used trucks and other transportation equipment sold principally by its independent dealers. Receivables are secured by the products financed or leased. The Company also conducts service leasing operations through wholly owned subsidiaries in North America and Germany under the PacLease trade name. Selected dealers in North America are franchised to provide service leasing. It provides its franchisees equipment financing and administrative support. The Company also operates service lease outlets on its own behalf.
The cyclical nature of truck sales again plagued the company in the early 1990s. As demand for trucks fell, so did PACCAR's sales. From a high of $3.5 billion in 1989, revenues fell to $2.8 billion in 1990 and then to $2.3 billion in 1991. The company managed to remain profitable, however, with net income falling from $242 million in 1989 to $40 million in 1991. The company avoided red ink in part by laying off 11 percent of its employees in 1990. PACCAR Automotive also cut back its operations in 1991 when it abandoned its wholesale auto parts sales to focus on its retail outlets.
PACCAR's finances improved slightly in 1992, when profits rose to $65 million. That year the company added to its oil field equipment manufacturing with the purchase of a 21 percent stake in Wood Group ESP.
The cycle rolled back upward in the mid-1990s, when aging fleets needed replacement and interest rates were relatively low. PACCAR enjoyed a series of record years, with revenues rising to $3.5 billion in 1993, $4.5 billion in 1994, and $4.8 billion in 1995. Profits rose commensurately, reaching $253 million in 1995. Robert Stovall, in a 1994 Financial World article, named PACCAR "the premier long-term investment in the heavy hauling business."
The prosperity encouraged expansion, and in 1993 PACCAR acquired a line of winches from heavy equipment manufacturer Caterpillar. The same year it brought a new plant in Washington on line to help meet the increased demand for trucks. In 1994 the company began selling in New Zealand for the first time and entered new countries in Asia and Central and South America. The company made its Mexican joint venture VILPAC, S.A., a wholly owned subsidiary in 1995.
In 1996 industrywide truck sales were down 25 percent from the year before. PACCAR responded by cutting back on production: It shut down truck manufacturing at a Seattle plant and closed a plant in Quebec that had been hurt by a strike the year before. The company's control over the heavy truck manufacturer VILPAC came in handy when PACCAR was able to move some of the Canadian production to the Mexican facilities.
PACCAR greatly expanded its presence in Europe in the late 1990s. In 1996 the company spent $543 million to acquire DAF Trucks N.V. Based in the Netherlands, DAF sold over 24,000 trucks in Europe in 1996 and employed around 5,000 people. In 1998 PACCAR bought Leyland Trucks Ltd., an acquisition it first pursued back in the mid-1980s. Founded in 1896, Leyland Trucks brought over 100 years of experience and 1997 sales of $272 million to PACCAR. The acquisitions were funded in part by the sale of Trico Industries, PACCAR's oil field equipment manufacturer, to EVI in 1997.
The acquisitions helped push PACCAR's revenues to $6.5 billion in 1997. Net income also increased, leaping 71 percent from the year before to approximately $345 million. Although truck sales were up, PACCAR's other businesses contributed to the company's prosperity. Earnings from retail automotive parts rose, and the company boasted 143 A1's Auto and Grand Auto stores by 1998. Financial and leasing subsidiaries also performed well in the late 1990s.
Principal Subsidiaries: DAF Trucks N.V.; Leyland Trucks Ltd.; PACCAR Automotive, Inc.; PACCAR of Canada, Ltd.; PACCAR Financial Corp.; PACCAR Financial Limited (U.K.); PACCAR Leasing Corporation; PACCAR Australia Pty. Ltd.; PACCAR Sales North America, Inc.; PACCAR Financial Pty. Ltd.; PACCAR Financial Services Ltd. (Canada); VILPAC, S.A. (Mexico).
Principal Divisions: Dynacraft; Kenworth Truck Company; PACCAR Parts; PACCARTechnical Center; PACCAR Winch Division; Peterbilt Motors Co.; PACCAR International.
Based in Bellevue, Washington, in the Seattle Metropolitan area. It was founded in 1905 by William Pigott, Sr., as the Seattle Car Manufacturing Company. Its original business was the production of railway and logging equipment. Upon a subsequent merger with a Portland, Oregon, firm, Twohy Brothers, Seattle Car Manufacturing Company became the Pacific Car and Foundry Company.
PACCAR Inc (PACCAR), incorporated in 1971, is engaged in the design, manufacture and customer support of light, medium and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also provides customized financial services, information technology and truck parts related to its principle business. The Company operates in two segments: design, manufacture and distribution of light-, medium- and heavy-duty trucks and related aftermarket parts, and finance and leasing products and services provided to customers and dealers. Its finance and leasing activities are principally related to its products and associated equipment. Other manufactured products include industrial winches.
Trucks
PACCAR and its subsidiaries designs and manufactures heavy-duty diesel trucks, which are marketed under the Kenworth, Peterbilt and DAF nameplates. These trucks, which are built in three plants in the United States, three in Europe and one each in Australia, Canada and Mexico, are used for over-the-road and off-highway hauling of freight, petroleum, wood products, construction and other materials. These trucks are assembled at facilities in Ste. Therese, Canada and in Mexicali, Mexico, which are operated by the Company’s wholly owned subsidiaries. During the year ended December 31, 2010, Commercial trucks and related aftermarket parts of the Company accounted for 89.7% of total net revenues. The Truck and Other businesses include a division of the Company, which manufactures industrial winches in two United States plants and markets them under the Braden, Carco, and Gearmatic nameplates.
Financial Services
In North America, Australia and 16 European countries, PACCAR provides financing and leasing arrangements, principally for its manufactured trucks, through wholly owned finance companies operating under the PACCAR Financial trade name. They provide inventory financing for independent dealers selling PACCAR products, and retail loan and lease financing for new and used trucks and other transportation equipment sold principally by its independent dealers. Receivables are secured by the products financed or leased. The Company also conducts service leasing operations through wholly owned subsidiaries in North America and Germany under the PacLease trade name. Selected dealers in North America are franchised to provide service leasing. It provides its franchisees equipment financing and administrative support. The Company also operates service lease outlets on its own behalf.
OVERALL
Beta: 1.34
Market Cap (Mil.): $19,494.12
Shares Outstanding (Mil.): 365.47
Annual Dividend: 0.48
Yield (%): 0.90
FINANCIALS
PCAR.O Industry Sector
P/E (TTM): 33.57 22.98 18.26
EPS (TTM): 277.37 -- --
ROI: 5.88 8.45 3.74
ROE: 10.85 13.46 6.60
Statistics:
Public Company
Incorporated: 1924 as Pacific Car & Foundry Company
Employees: 17,000
Sales: $6.75 billion (1997)
Stock Exchanges: NASDAQ
Ticker Symbol: PCAR
SICs: 3711 Motor Vehicles & Car Bodies; 5531 Auto & Home Supply Stores; 7513 Truck Rental & Leasing, Without Drivers; 6719 Holding Companies, Not Elsewhere Classified
Name Age Since Current Position
Pigott, Mark 57 1997 Chairman of the Board, Chief Executive Officer
Armstrong, Ronald 55 2010 President
Sobic, Daniel 57 2008 Executive Vice President
Christensen, Robert 54 2010 Executive Vice President
Quinn, Thomas 49 2009 Vice President, Chief Information Officer
Barkley, Michael 55 2007 Vice President, Controller
Schippers, Harrie 50 2011 Vice President
Means, Samuel 69 2011 Vice President
Bengston, Robert 55 2011 Vice President
Anderson, David 57 2005 Vice President, General Counsel
Plimpton, Thomas 61 2008 Vice Chairman of the Board
Parry, Robert 71 2004 Director
Carnwath, Alison 58 2005 Director
Williamson, Charles 62 2006 Director
Spierkel, Gregory 54 2008 Director
Staley, Warren 68 2008 Director
Pigott, John 47 2009 Director
Fluke, John 68 1984 Independent Director
Page, Stephen 71 2004 Independent Director
Hachigian, Kirk 51 2008 Independent Director
Address:
PACCAR Building
777 106th Avenue NE
Bellevue, Washington 98004
U.S.A.
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