Paccar Inc.: Trucking Along On A Smooth Road

Washington-based truck maker is enjoying record profits.

How do you stop a big rig? If you are Paccar Inc., there is no stopping. The Bellevue, Wash.-based Paccar -- one of IndustryWeek's IW 50 Best Manufacturers for 2006 -- has enjoyed record revenues and other worthy accolades lately.

The company, which manufactures heavy-duty, on- and off-road Class 8 trucks sold under the Kenworth, Peterbilt, DAF and Foden nameplates, has roots dating back to 1905. During those 100-plus years, the company has seen its ups and downs financially. Having survived the Depression of 1929, Paccar founders would be pleased to know how well the company is doing today.

William Pigott Sr. founded the Seattle Car Mfg. Co. to produce railway and logging equipment. The company later merged with Twohy Brothers of Portland to become Pacific Car and Foundry Co., a name it retained for 55 years until ultimately becoming Paccar Inc.

"Paccar achieved record revenues and net income for the first quarter of 2006," said Mark C. Pigott, chairman, CEO and great-grandson of founder William Pigott.

Paccar Inc.
At A Glance


Paccar Inc.
Bellevue, Wash.
Primary Industry: Motor Vehicles
Number of Employees: 20,500
2005 In Review
Revenue: $14 billion
Profit Margin: 8.06%
Sales Turnover: 1.02
Inventory Turnover: 22.88
Revenue Growth: 23.35%
Return On Assets: 9.27%
Return On Equity: 30.12%
Paccar earned $342.0 million for the first-quarter 2006, an increase of 25% compared with $274 million earned in the first quarter of 2005. First-quarter net sales and financial services revenues were $3.85 billion versus $3.33 billion for the first quarter of last year.

William Pigott also would be pleased his company has remained relevant in the technology age. On Feb. 13, 2006, President George W. Bush presented Paccar with the National Medal of Technology, the nation's highest award for innovation. Paccar earned the award for its leadership in developing aerodynamic, lightweight commercial vehicles that have dramatically reduced fuel consumption, increased the productivity of freight transportation and contributed to the strength of the nation's economy, according to the company.

Another honor that would make founder Pigott proud: His great-grandson was recently named to Forbes magazine's Best-Performing Bosses list.

In terms of sustainability, Paccar is looking toward an environmentally sound future.

"Paccar has targeted an ambitious goal of 30% improvement in vehicle fuel efficiency for selected medium-duty applications over the next seven years utilizing hybrid technology as a key contributor to achieving this objective," said Pigott in a March 31, 2006 press release. "Paccar's comprehensive global hybrid program is aimed at commercializing energy management systems that provide benefits to both our customers and the environment."


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