PACCAR 2012 Annual Report Download - page 27

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
Capital investments in 2013 are expected to be $400 to $500 million, focused on the completion of the truck factory
in Brasil and the development of new products and services worldwide. Research and development (R&D) in 2013
is expected to be $225 to $275 million, focused on comprehensive product development programs and enhanced
manufacturing operating efficiency.
See the Forward Looking Statement section of Management’s Discussion and Analysis for factors that may affect
this outlook.
Financial Services Outlook
Average earning assets in 2013 may grow approximately 5-10% as increased new business financing from truck sales
exceeds customer collections. Current levels of freight tonnage, freight rates and fleet utilization are contributing to
customers’ profitability and cash flow. If current freight transportation conditions decline due to weaker economic
conditions, past due accounts, truck repossessions and credit losses would likely increase from the current low
levels. See the Forward Looking Statement section of Management’s Discussion and Analysis for factors that may
affect this outlook.
RE S U LT S OF O PE R AT I ON S :
($ in millions, except per share data)
Year Ended December 31, 2012 2011 2010
Net sales and revenues:
Truck $ 13,131.5 $ 12,630.7 $ 7,042.9
Parts 2,667.5 2,577.0 2,194.4
Other 152.7 118.2 87.8
Truck, Parts and Other 15,951.7 15,325.9 9,325.1
Financial Services 1,098.8 1,029.3 967.8
$ 17,050.5 $ 16,355.2 $ 10,292.9
Income (loss) before income taxes:
Truck $ 920.4 $ 864.7 $ 187.5
Parts 374.6 394.1 313.5
Other (7.0) (26.5) (15.3)
Truck, Parts and Other 1,288.0 1,232.3 485.7
Financial Services 307.8 236.4 153.5
Investment income 33.1 38.2 21.1
Income taxes (517.3) (464.6) (202.7)
Net Income $ 1,111.6 $ 1,042.3 $ 457.6
Diluted Earnings Per Share $ 3.12 $ 2.86 $ 1.25
Return on Revenues 6.5% 6.4% 4.4%
The following provides an analysis of the results of operations for the Company’s three reportable segments, Truck,
Parts and Financial Services. Where possible, the Company has quantified the factors identified in the following
discussion and analysis. In cases where it is not possible to quantify the impact of factors, the Company lists them
in estimated order of importance. Factors for which the Company is unable to specifically quantify the impact
include market demand, fuel prices, freight tonnage and economic conditions affecting the Company’s results
of operations.