PACCAR 2010 Annual Report Download - page 8

operations in North America and continued to increase
its market presence in 2010, growing its global network
to 470 locations.
ENVIRONMENTAL LEADERSHIP — PACCAR is a global
environmental leader. A significant achievement was
earning ISO 14001 environmental certification at all
PACCAR manufacturing facilities in Europe and North
America. DAF introduced its medium duty diesel-
electric LF hybrid vehicles, which can achieve up to a
30% fuel economy improvement. The company’s
manufacturing facilities enhanced their “Zero Waste
to Landfill” programs 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 17,700 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 improving economy will have a positive impact
on the North American and European truck markets in
2011. Current estimates for Class 8 trucks in North
America indicate that yearly industry sales could range
from 200,000-220,000 units. Sales for Class 6-7 trucks
are expected to be between 45,000-55,000 vehicles.
The European 15+ tonne market in 2011 is estimated to
be in the range of 220,000-240,000 trucks, while
demand for medium trucks are projected to range from
55,000-65,000 units.
PACCAR had a good year in 2010, with most
operating divisions achieving improved results and some
achieving record revenues and profits. The outlook for
2011 is brighter as the economy is forecast to grow over
3% in North America and 1-2% in Europe. There are
opportunities for PACCAR to grow its business in its
current markets and in the emerging BRIC markets.
We are examining strategic plans that focus on
manufacturing, distribution and aftermarket services.
PACCAR is well positioned and committed to
maintaining the profitable results its shareholders
expect, by delivering industry-leading products and
services globally.
PACCAR recognizes two significant retirements.
President Jim Cardillo retired upon completion of 20
years of exemplary service, in which he was instrumental
in the establishment of the PACCAR engine program in
North America and the integration of DAF into
PACCAR. Gary Reed is retiring after 13 years on the
Board of Directors. Gary’s strong analytical insight and
dedication to uncompromising strategic evaluation
contributed to PACCAR’s success. We thank Jim and
Gary for their dedication and wish both happy and
healthy retirements.
PACCAR and its employees are proud of the
remarkable achievement of 72 consecutive years of net
profit. PACCAR embraces a long-term view of its
businesses, 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. As our major markets emerge from a
difficult recession, PACCAR is enhancing its stellar
reputation as a leading technology company in the
capital goods and financial services marketplace.
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M A R K C . P I G O T T
Chairman and Chief Executive Officer
Februar y 21, 2011
PACCAR Executive Committee
Seated Left to Right: Tom Plimpton, Mark Pigott, Ron Armstrong,
Dan Sobic; Standing Left to Right: Michael Barkley, Sam Means,
Harrie Schippers, Bob Christensen, Dave Anderson, Bob Bengston,
Kyle Quinn