PACCAR 2011 Annual Report Download - page 7

ENVIRONMENTAL LEADERSHIP — PACCAR is a global
environmental leader. All PACCAR manufacturing
facilities have earned ISO 14001 environmental
certification. Peterbilt Motors’ Model 386 Liquefied
Natural Gas (LNG) truck received Environmental
Protection Agency (EPA) accreditation for the industry’s
first SmartWay designated alternative-fuel vehicle. 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 23,400 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.
Current estimates for the industry 2012 Class 8
trucks in the U.S. and Canada indicate that sales could
range from 210,000-240,000 units. Sales for Class 6 – 7
trucks are expected to be between 60,000-70,000 vehicles.
The European 15+ tonne truck market in 2012 is also
estimated to be in the range of 210,000-240,000 trucks,
while demand for medium duty trucks should range
from 55,000-65,000 units.
The outlook for 2012 appears good as the North
American economy generates growth of 2-3%, though
Europe is struggling with economic challenges. There
are opportunities for PACCAR to grow its business in its
current markets and eventually in the emerging BRIC
markets. PACCAR is well positioned and committed
to maintaining the profitable results its shareholders
expect, by delivering industry-leading products and
services globally.
PACCAR recognizes three significant retirements.
Vice Chairman Tom Plimpton retired upon completion
of 35 years of exemplary service, in which he was
instrumental in the integration of DAF into PACCAR,
the growth of Peterbilt and providing the foundation
for PACCAR’s increased investments in Asia. We thank
Tom for his dedication, superb performance and positive
outreach during his years at PACCAR. Steve Page
and Bob Parry are retiring after eight years on the
PACCAR Board of Directors. Steve’s strong analytical
knowledge of international business and Bob’s thorough
understanding of finance and economics contributed to
PACCAR’s success. We thank Tom, Steve and Bob for their
dedication and wish them a happy and healthy retirement.
PACCAR and its employees are proud of the
remarkable achievement of 73 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. PACCAR is enhancing its stellar
reputation as a leading technology company in the
capital goods and financial services marketplace.

MARK C. PIGOTT
Chairman and Chief Executive Officer
February 21, 2012
Front Row Left to Right: Kyle Quinn, Jack LeVier, Ron Armstrong,
Michael Barkley; Back Row Left to Right: Sam Means, Harrie
Schippers, Dan Sobic, Mark Pigott, Bob Christensen, Dave
Anderson, Bob Bengston