Summary
PACCAR Inc's 2010 annual report highlights a company with a strong market position in the design, manufacture, and distribution of heavy-duty trucks, with its Kenworth, Peterbilt, and DAF brands. The truck segment, comprising nearly 90% of net sales, showed resilience, with a growing backlog of $3.5 billion by year-end 2010, up from $1.1 billion in 2009, indicating a recovery in demand following the economic downturn. The company also operates a significant financial services segment, providing financing and leasing for its products, which is crucial for supporting truck sales and generating additional revenue, though it faces competitive pressures and credit risks. Overall, PACCAR appears to be navigating the post-recession economic landscape effectively, with a focus on quality and customer specifications for its custom-built trucks. The company's financial services arm plays a vital role in its ecosystem, though careful management of credit risk and funding costs is essential. Investors can look to PACCAR's market share, truck sales volume, aftermarket parts performance, and the health of its financial services segment as key indicators of future performance, with the growing backlog signaling a positive outlook for 2011.
Financial Highlights
34 data points| Revenue | $10.29B |
| Interest Expense | $230.20M |
| Net Income | $457.60M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.83 |
| Shares Outstanding (Basic) | 547.50M |
| Shares Outstanding (Diluted) | 549.30M |
Key Highlights
- 1PACCAR's truck business (Kenworth, Peterbilt, DAF) is the primary revenue driver, accounting for 89.7% of net sales in 2010.
- 2The company experienced a significant increase in its truck production backlog, rising to $3.5 billion by year-end 2010 from $1.1 billion in 2009, indicating strong demand recovery.
- 3The Financial Services segment provides crucial financing and leasing for PACCAR products, supporting dealer and customer sales.
- 4PACCAR maintains a competitive position with substantial market shares in North America (24.1% of Class 8 retail sales) and Europe (15.2% of Western/Central European heavy-duty market).
- 5Aftermarket parts sales represented a significant portion of revenue (21.3% in 2010), demonstrating a valuable recurring revenue stream.
- 6The company proactively manages market risks, including currency and interest rate fluctuations, and operational risks through long-term supply agreements and a conservative underwriting approach in financial services.
- 7Despite facing ongoing investigations by the EU Competition Commission and the UK Office of Fair Trading regarding pricing practices, PACCAR believes these will not materially affect its business.