PACCAR 2009 Annual Report Download - page 8

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MARK C. PIGOTT
Chairman and Chief Executive Officer
February 20, 2010
The North American lease market was lower, and PacLease
Europe suffered due to the recession in the German truck
market. The PacLease fleet is over 30,000 vehicles. Twenty
percent of the North American Class 6-8 customers select
full-service leasing to satisfy their equipment needs.
PacLease continued to increase its market presence in
2009, growing its global network to over 400 locations,
and represents one of the largest full-service truck rental
and leasing operations in North America.
ENVIRONMENTAL LEADERSHIP — PACCAR is a global
environmental leader. A significant accomplishment
during the year was earning ISO 14001 environmental
certification at all PACCAR manufacturing facilities in
Europe and North America. PACCAR introduced
medium duty diesel-electric hybrid vehicles, which can
achieve up to a 30% fuel economy improvement. Many
of the company’s manufacturing facilities achieved “Zero
Waste to Landfill” status during the year. PACCAR
employees are environmentally conscious and utilize
van pools, car pools and bus passes for 30% of their
business commuting.
A LOOK AHEAD — PACCAR’s 15,000 employees enabled
the company to distinguish itself as a global leader in
the technology, capital goods, financial services and
aftermarket parts businesses. Superior product quality,
technological innovation and balanced global
diversification are three key operating characteristics
that define PACCAR’s business philosophy.
The ongoing recession will continue to have a negative
impact on the North American and European truck
markets in 2010. Current estimates for Class 8 trucks in
North America indicate that yearly industry sales could
be similar to 2001, and range from 125,000-150,000
units. This is one of the lowest sales levels in the last
10 years. Sales for Class 6-7 trucks are expected to be
between 35,000-45,000 vehicles. The European heavy
duty truck market, which had a weak year in 2009, could
decline again as European government stimulus programs
wane. It is estimated that the 15+ tonne market for
2010 will be in the range of 150,000-180,000 trucks,
while demand for medium trucks should range from
45,000-55,000 units.
PACCAR had a reasonably successful year in 2009,
with several operating divisions achieving good results,
though some divisions recorded losses. The outlook for
2010 appears mixed as the economy generates limited
growth in North America, and perhaps no growth in
Europe. There will continue to be challenges until
major economic indicators significantly improve, which
will prompt increased freight tonnage and renewed
truck demand. The company has taken proactive steps
to adjust production rates as well as structurally reduce
costs throughout the organization. PACCAR is well
positioned and committed to maintaining the profitable
results its shareholders expect, by delivering industry-
leading products and services globally.
PACCAR and its employees are proud of the
remarkable achievement of 71 consecutive years of net
profit. PACCAR plans for the long term, and our
shareholders have benefited from that approach. The
embedded principles of integrity, quality and consistency
of purpose continue to define the course in PACCAR’s
operations. The proven business strategy — deliver
technologically advanced premium products and an
extensive array of tailored aftermarket customer services
— enables PACCAR to pragmatically approach growth
opportunities with a long-term focus. PACCAR is
enhancing its stellar reputation as a leading technology
company in the capital goods and financial service
marketplace.
PACCAR Executive Committee
Seated Left to Right: Tom Plimpton, Mark Pigott, Jim Cardillo,
Dan Sobic; Standing Left to Right: Ron Armstrong, Michael
Barkley, Aad Goudriaan, Bob Christensen, Dave Anderson,
Kyle Quinn