<PAGE>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended September 30, 1998
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _________ to _________
Commission File No. 0-6394
PACCAR Inc
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(Exact name of Registrant as specified in its charter)
Delaware 91-0351110
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
777 - 106th Ave. N.E., Bellevue, WA 98004
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(Address of principal executive offices) (Zip Code)
(425) 468-7400
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days. Yes X No
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Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $1 par value--78,124,747 shares as of October 31, 1998
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
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INDEX
<TABLE>
<CAPTION>
Page
----
PART I. FINANCIAL INFORMATION:
<S> <C>
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Statements of Income --
Three and Nine Months Ended September 30, 1998 and 1997 (unaudited)................... 3
Consolidated Balance Sheets --
September 30, 1998 (unaudited), and December 31, 1997................................. 4
Condensed Consolidated Statements of Cash Flows --
Nine Months Ended September 30, 1998 and 1997 (unaudited)............................. 6
Notes to Consolidated Financial Statements............................................... 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS...................................................... 10
PART II. OTHER INFORMATION:
ITEM 5. OTHER INFORMATION................................................................. 15
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.................................................. 15
SIGNATURE...................................................................................... 16
INDEX TO EXHIBITS.............................................................................. 17
</TABLE>
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
PART I--FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
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Consolidated Statements of Income (Unaudited)
(Millions except per share data)
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<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
TRUCK AND OTHER:
Net sales $ 1,857.3 $ 1,639.2 $ 5,459.0 $ 4,675.2
Costs and Expenses
Cost of sales 1,571.6 1,402.1 4,609.0 4,023.8
Selling, general and administrative 156.3 131.3 444.2 385.0
Interest 4.8 4.9 14.2 13.1
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1,732.7 1,538.3 5,067.4 4,421.9
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Truck and Other Income
Before Income Taxes 124.6 100.9 391.6 253.3
FINANCIAL SERVICES:
Revenues 81.4 71.3 231.9 208.8
Costs and Expenses
Interest and other 45.1 37.8 127.0 111.7
Selling, general and administrative 15.0 13.3 43.4 39.8
Provision for losses on receivables 3.6 1.9 9.5 4.9
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63.7 53.0 179.9 156.4
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Financial Services Income
Before Income Taxes 17.7 18.3 52.0 52.4
Investment income 9.0 6.1 23.7 16.7
Other, net .6 2.7 5.9 5.1
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Total Income Before Income Taxes 151.9 128.0 473.2 327.5
Income taxes 55.3 45.5 171.3 115.6
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Net Income $ 96.6 $ 82.5 $ 301.9 $ 211.9
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Net Income Per Share:
Basic $ 1.24 $ 1.06 $ 3.87 $ 2.72
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Diluted 1.23 1.05 3.84 2.71
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Weighted Average Number of
Common Shares Outstanding 78.1 77.8 78.1 77.8
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Dividends declared and paid per share $ .15 $ .15 $ .45 $ .425
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</TABLE>
See Notes to Consolidated Financial Statements.
-3-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
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Consolidated Balance Sheets September 30 December 31
ASSETS (Millions of Dollars) 1998 1997*
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<S> <C> <C>
TRUCK AND OTHER: (Unaudited)
Current Assets
Cash and cash equivalents $ 359.3 $ 318.6
Trade and other receivables, net of allowance for losses 688.8 600.3
Marketable securities 416.3 357.0
Inventories 514.8 393.5
Deferred taxes and other current assets 83.0 86.7
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Total Truck and Other Current Assets 2,062.2 1,756.1
Deferred taxes, goodwill and other 194.1 183.5
Property, plant and equipment, net 777.6 665.9
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Total Truck and Other Assets 3,033.9 2,605.5
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FINANCIAL SERVICES:
Cash and cash equivalents 17.0 19.3
Finance and other receivables, net of allowance for losses 3,497.1 3,131.0
Less unearned interest (244.8) (237.1)
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3,252.3 2,893.9
Equipment on operating leases, net 58.3 55.8
Other assets 30.8 24.9
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Total Financial Services Assets 3,358.4 2,993.9
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$6,392.3 $5,599.4
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</TABLE>
-4-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
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September 30 December 31
LIABILITIES AND STOCKHOLDERS' EQUITY 1998 1997*
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<S> <C> <C>
TRUCK AND OTHER: (Unaudited)
Current Liabilities
Accounts payable and accrued expenses $1,318.0 $1,037.6
Current portion of long-term debt 16.0 15.0
Dividend payable 116.7
Income taxes 31.9 44.5
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Total Truck and Other Current Liabilities 1,365.9 1,213.8
Long-term debt 232.1 236.6
Other, including deferred taxes 280.1 226.1
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Total Truck and Other Liabilities 1,878.1 1,676.5
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FINANCIAL SERVICES:
Accounts payable and accrued expenses 36.8 85.8
Commercial paper and bank loans 1,509.9 1,086.7
Long-term debt 1,029.2 1,097.7
Deferred income taxes and other 153.8 154.9
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Total Financial Services Liabilities 2,729.7 2,425.1
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STOCKHOLDERS' EQUITY Preferred stock, no par value:
authorized 1.0 million shares, none issued
Common stock, $1 par value: authorized 200.0 million
shares, 78.1 million shares issued and outstanding 78.1 77.8
Additional paid-in capital 620.0 609.9
Retained earnings 1,207.5 940.8
Currency translation and
net unrealized investment gains or (losses) (121.1) (130.7)
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Total Stockholders' Equity 1,784.5 1,497.8
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$6,392.3 $5,599.4
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</TABLE>
* The December 31, 1997, consolidated balance sheet has been derived from
audited financial statements.
See Notes to Consolidated Financial Statements.
-5-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
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Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions of Dollars)
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Nine Months Ended September 30 1998 1997
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<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 454.7 $ 292.7
INVESTING ACTIVITIES:
Finance receivables originated (1,376.4) (1,043.0)
Collections on finance receivables 960.3 934.1
Net (increase) decrease in wholesale receivables (15.4) 26.8
Marketable securities purchased (1,006.8) (1,790.1)
Marketable securities maturities and sales 974.9 1,743.0
Acquisition of businesses, net of cash acquired (75.2)
Acquisition of property, plant and equipment (112.0) (59.6)
Acquisition of equipment for operating leases (17.7) (12.5)
Proceeds from asset disposals 41.7 30.1
Other 9.5 (15.8)
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Net Cash Used in Investing Activities (617.1) (187.0)
FINANCING ACTIVITIES:
Cash dividends paid (151.9) (91.4)
Stock option transactions 6.5 2.3
Net increase (decrease) in notes payable,
commercial paper and bank loans 422.8 (269.6)
Proceeds of long-term debt 464.3 686.0
Payment of long-term debt (545.9) (414.3)
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Net Cash Provided by (Used in) Financing Activities 195.8 (87.0)
Effect of exchange rate changes on cash 5.0 (10.2)
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Net Increase in Cash and Equivalents 38.4 8.5
Cash and cash equivalents at beginning of period 337.9 222.9
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Cash and cash equivalents at end of period $ 376.3 $ 231.4
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</TABLE>
See Notes to Consolidated Financial Statements.
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
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Notes to Consolidated Financial Statements (In millions, except share amounts)
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NOTE A--Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the three- and nine-month periods ended
September 30, 1998, are not necessarily indicative of the results that may be
expected for the year ended December 31, 1998. For further information, refer to
the consolidated financial statements and footnotes included in the Company's
annual report on Form 10-K for the year ended December 31, 1997.
RECLASSIFICATIONS: Certain prior year amounts have been reclassified to conform
to the 1998 presentation.
<TABLE>
<CAPTION>
NOTE B--Inventories
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September 30 December 31
1998 1997
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<S> <C> <C>
Inventories at FIFO cost: (Unaudited)
Finished products $332.4 $274.7
Work in process and raw materials 308.5 244.9
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640.9 519.6
Less excess of FIFO cost over LIFO (126.1) (126.1)
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$514.8 $393.5
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</TABLE>
Under the LIFO method of accounting (used for approximately 50% of September 30,
1998 inventories), an actual valuation can be made only at the end of each year
based on year-end inventory levels and costs. Accordingly, interim valuations
are based on management's estimates of those year-end amounts. Based on present
estimates of year-end inventory levels, no significant liquidations of LIFO
inventory quantities are expected. Because inventory levels and costs are
subject to many forces beyond management's control, the present estimates are
subject to the final year-end LIFO inventory valuation.
NOTE C--Stockholders' Equity
Stock Option Exercises
On January 1, 1998, approximately 533,000 stock options previously granted to
PACCAR employees became exercisable. For the nine months ended September 30,
1998, PACCAR issued an additional 298,000 common shares as a result of employee
stock option exercises.
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
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Notes to Consolidated Financial Statements (In millions, except share amounts)
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Diluted Earnings Per Share
The following table shows the additional shares added to basic shares
outstanding to calculate diluted earnings per share. These amounts represent
primarily the dilutive effect of stock options outstanding.
<TABLE>
<CAPTION>
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Three Months Ended Nine Months Ended
September 30 September 30
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Additional shares 551,000 464,000 634,000 367,000
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</TABLE>
Comprehensive Income
As of January 1, 1998, PACCAR adopted Statement of Financial Accounting Standard
No. 130 (SFAS No. 130), "Reporting Comprehensive Income." SFAS No. 130 requires
unrealized gains or losses on the Company's available-for-sale securities and
foreign currency translation adjustments, which are reported separately in
stockholders' equity, to be included in other comprehensive income. The new
statement had no impact on PACCAR's net income or stockholders' equity.
The components of comprehensive income, net of any related tax, are as follows:
<TABLE>
<CAPTION>
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Three Months Ended Nine Months Ended
September 30 September 30
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Net income $ 96.6 $ 82.5 $ 301.9 $ 211.9
Foreign currency translation adjustments 17.4 (7.3) 8.4 (34.8)
Net unrealized gains on securities 1.3 .6 1.2 .4
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Total comprehensive income $ 115.3 $ 75.8 $ 311.5 $ 177.5
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<CAPTION>
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss was comprised of the following:
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September 30 December 31
1998 1997
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<S> <C> <C>
Accumulated foreign currency translation adjustments $(123.2) $(131.6)
Net unrealized gains on securities 2.1 .9
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Net accumulated other comprehensive loss $(121.1) $(130.7)
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</TABLE>
Net accumulated other comprehensive loss is reported in the accompanying
consolidated financial statements as "Currency translation and net unrealized
investment gains or (losses)."
-8-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
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Notes to Consolidated Financial Statements
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NOTE D---Acquisition of Leyland Trucks Limited
Effective June 2, 1998, PACCAR acquired privately-held Leyland Trucks Limited
(Leyland). Leyland is a United Kingdom truck manufacturing company with 760
employees. PACCAR's Netherlands truck manufacturing subsidiary, DAF Trucks N.V.
(DAF), is a major customer of Leyland. The 45 and 55 Series distribution trucks
produced by Leyland are marketed exclusively in Europe by DAF.
PACCAR used the purchase method of accounting for the acquisition. The
consolidated financial statements include Leyland operations subsequent to the
acquisition date. Had the acquisition taken place on January 1, 1997, the impact
on PACCAR's 1998 and 1997 third quarter and nine month's consolidated financial
statements would not be material. In addition, due to the supplier-customer
relationship of Leyland to DAF, a substantial portion of Leyland's sales are
eliminated in consolidation.
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
PACCAR's consolidated net sales for the third quarter grew 13% to $1.9
billion compared to the $1.6 billion recorded in the third quarter of
1997. For the first nine months of 1998, sales totaled $5.5 billion,
up 17% compared to the $4.7 billion for the first nine months of 1997.
Net income for the third quarter of $96.6 million exceeded the $82.5
million earned in the same period last year. The first nine months
income of $301.9 million is 42% ahead of 1997 nine-month net income of
$211.9 million.
Truck and Other income before income taxes increased $23.7 million or
23% for the quarter and $138.3 million or 55% year-to-date compared to
corresponding amounts in 1997. Higher sales and profits in 1998 are
attributable to improvements in PACCAR's two major markets, North
America and Europe, where truck operations benefited from higher
volumes, improved margins and production efficiencies. While truck
industry orders and backlogs are currently strong, there are signs
that demand for new trucks may return to more moderate levels next
year compared to the exceptional market experienced over the past
several months.
Compared to previous quarters in 1998, third quarter results were
impacted by the traditional summer holiday closures of the Company's
truck plants in Europe.
In the United States, the work stoppage at PACCAR's Peterbilt factory
in Nashville, which began on May 4, has not been settled. Peterbilt
has responded to customer demand by increasing the production rate at
its Denton, Texas, facility and by using skilled, temporary workers at
its Nashville plant.
Sales and profits for PACCAR's other product areas, which include
retail auto parts and winches, showed favorable comparisons for both
the third quarter and first nine months of 1998 compared to the prior
year.
In the Financial Services segment, consolidated net loan and lease
portfolios increased by more than $350 million during the first nine
months to over $3.2 billion at the end of September 1998. The
additional income from portfolio growth was offset by a reduction in
interest rate spreads, higher operating expenses and increases to the
loan loss provision. The increases to the loan loss reserve were
consistent with the portfolio growth. As a result, Financial Services
income before income taxes for both the third quarter and first nine
months in 1998 declined slightly compared to the corresponding prior
year amounts.
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
LIQUIDITY AND CAPITAL RESOURCES:
PACCAR's ratio of Truck and Other current assets to current
liabilities at September 30, 1998, increased to 1.51 compared to 1.45
at December 31, 1997.
Net cash provided by operating activities increased in 1998 due
primarily to higher net income and to changes occurring during the
period to components of working capital. In the first nine months of
1998, PACCAR used cash from Truck and Other operating activities
primarily to pay the special year-end and regular quarterly cash
dividends, make capital additions, purchase Leyland Trucks in the
second quarter and purchase additional marketable securities. PACCAR's
finance and leasing companies funded their portfolio growth primarily
with additional short term borrowings, cash from financial services
operating activities, and proceeds from the sale of equipment returned
on completion of lease contracts, net of new equipment acquired. In
September 1998, PACCAR's largest financial services subsidiary, PACCAR
Financial Corp. (PFC), registered $1 billion of senior debt securities
under the Securities Act of 1933 for offering to the public. At the
end of September 1998, PFC had $925 million of such securities
remaining and available for future issuance.
The significant increase in capital additions in 1998 reflects the
Company's investments in various capacity expansion and production
improvement projects. Capacity investments made earlier in the year
have allowed Kenworth and DAF to increase their production rates. As
previously announced, DAF plans to make additional capacity
investments at its Belgium and Netherlands plants as well as to
utilize the newly acquired Leyland facility to supply the United
Kingdom market. A Seattle-area facility is being prepared to build
Class 6/7 trucks. When complete, production of Class 6/7 trucks will
be shifted to Seattle from Mexicali, Mexico. This shift will give the
Mexicali plant the ability to increase its Class 8 build rates. In
Canada, the Company's truck plant in Ste. Therese is on schedule for a
midyear 1999 opening. In addition to investments in production
capacity, the Company continues to invest in new product development,
and in new technology to support business process improvements.
Other information on liquidity and sources of capital as presented in
the 1997 Annual Report to Stockholders continues to be relevant.
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
YEAR 2000 ISSUE:
GENERAL
The Company established a formal Year 2000 project in 1996 to manage
PACCAR's global compliance effort. The scope of the project includes
the compliance of (1) mainframe computer systems, (2) PC and LAN
systems, (3) embedded systems (including both the Company's internal
machinery and equipment and the Company's products), and (4)
significant third parties. A steering committee comprised of senior
executives monitors progress and addresses compliance issues.
Management of the Company believes it has an effective program in
place to resolve the year 2000 issue in a timely manner.
STATUS OF THE COMPANY'S YEAR 2000 COMPLIANCE
The Company has completed the evaluation of virtually all computer
systems and applications used by the Company and its subsidiaries.
PACCAR has prioritized the non-compliant systems and expects to
substantially complete modifications to all significant systems before
problems related to the Year 2000 occur. Outside specialists have been
retained to assist in this process to the extent considered necessary.
Mainframe computer systems compliance efforts are approximately 75%
complete. PC and LAN systems are approximately 50% complete, and
embedded manufacturing systems are approximately 65% complete. The
Company has verified that there are no Year 2000 issues with that
portion of its products manufactured by the Company, and it has
received confirmation from most major suppliers that there are no Year
2000 issues with their components as used in the Company's products.
The Company is continuing to contact remaining suppliers about
compliance of their components. Year 2000 compliance work is being
successfully completed along with other systems development projects.
SIGNIFICANT THIRD PARTIES
Some of the Company's Year 2000 compliance efforts are dependent on
the release of new versions of software by the software developers,
and some of these new releases are not scheduled to be delivered until
1999. These software developers have represented to the Company that
the new releases will be delivered in time to avoid any material Year
2000 issues with their software.
PACCAR is contacting all business critical suppliers to assess their
own Year 2000 efforts and take appropriate action if there is risk to
PACCAR's continued operation. PACCAR is also assessing the Year 2000
programs of its independent dealers and tracking their progress toward
completion. There is regular communication with dealers, which
includes the importance of addressing the Year 2000 issue and general
guidance regarding appropriate steps to take.
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
The Company also depends on banks and other financial institutions to
support its cash management activities and to fund the lending
activity of its financial services companies by the issuance of
commercial paper and public debt. With respect to banks and other
financial institutions with which it has relationships, the Company
has sent letters and has received responses indicating that such banks
and other financial institutions already are or will be compliant by
the Year 2000.
To date, the Company is not aware of any significant third party,
including software developers, suppliers, dealers, banks and others,
with a Year 2000 issue that would materially impact the Company's
results of operations, liquidity, or capital resources.
YEAR 2000 COSTS
The total cost to complete these projects is expected to approximate
$25 million, of which $12 million has been incurred through September
30, 1998. The Company has and expects to continue to fund the cost of
these projects from operations. All project costs are being expensed.
YEAR 2000 RISKS
The Company has not yet completed all necessary phases of its Year
2000 program. In addition, the Company has no means of ensuring that
significant third parties will be fully prepared for the Year 2000. In
the event the Company or one or more significant third parties fail to
become completely Year 2000 compliant, the most reasonably likely
worst case scenario for the Company is that manufacturing operations
could be temporarily impacted. Production at one or more of the
Company's plants could be interrupted for a period of time, which in
turn could result in lost sales and profits. Selling, general and
administrative expense for the Company would likely increase to the
extent that automated functions would need to be performed manually.
The most reasonably likely worst case scenario for the Company's
financial services companies, if some of their systems are not Year
2000 compliant, is that information and reports would contain
inaccuracies that would reduce the efficiency of payment processing
and would result in increased administrative costs and generally
reduce customer service. If a significant failure of banking systems
or systems of other entities that are key to the public debt markets
occurred due to Year 2000 issues, the financial services companies'
ability to access various credit and money markets and to process
payments could be adversely affected.
In addition, the world economy could enter a recession due to
widespread interruption in commercial activity or due to diverting
substantial resources to achieve Year 2000 compliance, which could
also have a materially adverse impact on the Company.
-13-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
The cumulative effect of these potential outcomes is unknown, but
could have a material effect on consolidated financial condition,
results of operations and liquidity.
CONTINGENCY PLANS
PACCAR considers alternatives in planning and scheduling Year 2000
projects. The Company continually evaluates the status of completion
of all Year 2000 projects to determine whether contingency plans
should be developed or implemented.
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
PART II--OTHER INFORMATION
For Items 1, 2, and 3, there was no reportable information for any of the three
months ended September 30, 1998.
Reportable information in response to Item 4 was previously reported in the
Quarterly Report on Form 10-Q for the quarter ended March 31, 1998.
ITEM 5. OTHER INFORMATION
The SEC has recommended that companies include in their 10-Q the notice deadline
for shareholder proposals to be presented at the annual shareholder's meeting,
other than those proposals that are to be included in the proxy materials. The
Company's bylaws provide that such notice must be received at the Company's
principal executive offices not less than 45 nor more than 60 days prior to the
annual shareholder's meeting.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. Any exhibits filed herewith are listed in the accompanying
index to exhibits.
(b) No reports on Form 8-K have been filed for the quarter ended September
30, 1998.
-15-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PACCAR Inc
------------------------------------------
(Registrant)
Date November 5, 1998 By /s/ G. D. Hatchel
--------------------------- -------------------------------
G. D. Hatchel
Vice President and Controller
(Authorized Officer and
Chief Accounting Officer)
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<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
INDEX TO EXHIBITS
Exhibit (in order of assigned index numbers)
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3 Articles of incorporation and bylaws:
(a) PACCAR Inc Certificate of Incorporation, as amended to April 29,
1997 (incorporated by reference to the Quarterly Report on Form
10-Q for the quarter ended March 31, 1997).
(b) PACCAR Inc Bylaws, as amended to April 26, 1994 (incorporated by
reference to the Quarterly Report on Form 10-Q for the quarter
ended March 31, 1994).
4 Instruments defining the rights of security holders, including indentures:
(a) Rights agreement dated as of December 21, 1989, between PACCAR Inc
and First Chicago Trust Company of New York setting forth the
terms of the Series A Junior Participating Preferred Stock, no par
value per share (incorporated by reference to Exhibit 1 of the
Current Report on Form 8-K of PACCAR Inc, dated December 27,
1989).
(b) Indenture for Senior Debt Securities dated as of December 1, 1983
and first Supplemental Indenture dated as of June 19, 1989 between
PACCAR Financial Corp. and Citibank, N.A., Trustee (incorporated
by reference to Exhibit 4.1 of the Annual Report on Form 10-K of
PACCAR Financial Corp. dated March 26, 1984, File Number 0-12553
and Exhibit 4.2 to PACCAR Financial Corp.'s registration statement
on Form S-3 dated June 23, 1989, Registration No. 33-29434).
(c) Forms of Medium-Term Note, Series F (incorporated by reference to
Exhibits 4.3A, 4.3B and 4.3C to PACCAR Financial Corp.'s
Registration Statement on Form S-3, dated May 26, 1992,
Registration Number 33-48118).
Form of Letter of Representation among PACCAR Financial Corp.,
Citibank, N.A., and the Depository Trust Company, Series F
(incorporated by reference to Exhibit 4.4 to PACCAR Financial
Corp.'s Registration Statement on Form S-3, dated May 26, 1992,
Registration Number 33-48118).
(d) Forms of Medium-Term Note, Series G (incorporated by reference to
Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration
Statement on Form S-3, dated December 8, 1993, Registration Number
33-51335).
Form of Letter of Representation among PACCAR Financial Corp.,
Citibank, N.A., and the Depository Trust Company, Series G
(incorporated by reference to Exhibit 4.4 to PACCAR Financial
Corp.'s Registration Statement on Form S-3, dated December 8,
1993, Registration Number 33-51335).
(e) Forms of Medium-Term Note, Series H (incorporated by reference to
Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration
Statement on Form S-3 dated March 11, 1996, Registration Number
333-01623).
-17-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
INDEX TO EXHIBITS
Exhibit (in order of assigned index numbers)
- -----------------------------------------------
Form of Letter of Representation among PACCAR Financial Corp.,
Citibank, N.A. and the Depository Trust Company, Series H
(incorporated by reference to Exhibit 4.4 to PACCAR Financial
Corp.'s Registration Statement on Form S-3 dated March 11, 1996,
Registration Number 333-01623).
(f) Forms of Medium-Term Note, Series I (incorporated by reference to
Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration
Statement on Form S-3 dated September 10, 1998, Registration
Number 333-63153).
Form of Letter of Representation among PACCAR Financial Corp.,
Citibank, N.A. and the Depository Trust Company, Series I
(incorporated by reference to Exhibit 4.5 to PACCAR Financial
Corp.'s Registration Statement on Form S-3 dated September 10,
1998, Registration Number 333-63153).
10 Material contracts:
(a) PACCAR Inc Incentive Compensation Plan (incorporated by reference
to Exhibit (10)(a) of the Annual Report on Form 10-K for the year
ended December 31, 1980).
(b) PACCAR Inc Deferred Compensation Plan for Directors (incorporated
by reference to Exhibit (10)(b) of the Annual Report on Form 10-K
for the year ended December 31, 1980).
(c) Supplemental Retirement Plan (incorporated by reference to Exhibit
(10)(c) of the Annual Report on Form 10-K for the year ended
December 31, 1980).
(d) 1981 Long Term Incentive Plan (incorporated by reference to
Exhibit A of the 1982 Proxy Statement, dated March 25, 1982).
(e) Amendment to 1981 Long Term Incentive Plan (incorporated by
reference to Exhibit (10)(a) of the Quarterly Report on Form 10-Q
for the quarter ended March 31, 1991).
(f) PACCAR Inc 1991 Long-Term Incentive Plan (incorporated by
reference to Exhibit C of the 1997 Proxy Statement, dated March
20, 1997).
(g) Amended and Restated Deferred Incentive Compensation Plan
(incorporated by reference to Exhibit (10)(g) of the Annual Report
on Form 10-K for the year ended December 31, 1993).
(h) PACCAR Inc Senior Executive Incentive Plan (incorporated by
reference to Exhibit D of the 1997 Proxy Statement, dated March
20, 1997).
-18-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
INDEX TO EXHIBITS
Exhibit (in order of assigned index numbers)
- ----------------------------------------------
27 Financial Data Schedule
(a) For the nine months ended September 30, 1998
The following schedules are submitted to reflect the restatement of "Truck
and Other Net Sales" to include "Other Revenues." Previously, "Other
Revenues" were presented separately. Also, earnings per share as previously
presented for periods prior to June 30, 1997 have been restated to give
effect to a two-for-one stock split paid in May of 1997.
(b) For the six months ended June 30, 1998 - restated
(c) For the three months ended March 31, 1998 - restated
(d) For the twelve months ended December 31, 1997 - restated
(e) For the nine months ended September 30, 1997 - restated
(f) For the six months ended June 30, 1997 - restated
(g) For the three months ended March 31, 1997 - restated
(h) For the twelve months ended December 31, 1996 - restated
(i) For the nine months ended September 30, 1996 - restated
(j) For the six months ended June 30, 1996 - restated
(k) For the three months ended March 31, 1996 - restated
(l) For the twelve months ended December 31, 1995 - restated
-19-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
AND 1997, AND THE CONSOLIDATED BALANCE SHEETS, SEPTEMBER 30, 1998, AND DECEMBER
31, 1997, OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 376,300
<SECURITIES> 416,300
<RECEIVABLES> 3,941,100
<ALLOWANCES> 0
<INVENTORY> 514,800
<CURRENT-ASSETS> 0
<PP&E> 777,600
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,392,300
<CURRENT-LIABILITIES> 0
<BONDS> 1,261,300
0
0
<COMMON> 78,100
<OTHER-SE> 1,706,400
<TOTAL-LIABILITY-AND-EQUITY> 6,392,300
<SALES> 5,459,000
<TOTAL-REVENUES> 5,690,900
<CGS> 4,609,000
<TOTAL-COSTS> 4,736,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 9,500
<INTEREST-EXPENSE> 14,200
<INCOME-PRETAX> 473,200
<INCOME-TAX> 171,300
<INCOME-CONTINUING> 301,900
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 301,900
<EPS-PRIMARY> 3.87
<EPS-DILUTED> 3.84
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND
1997, AND THE CONSOLIDATED BALANCE SHEETS, JUNE 30, 1998, AND DECEMBER 31, 1997,
OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 281,600
<SECURITIES> 360,100
<RECEIVABLES> 3,817,600
<ALLOWANCES> 0
<INVENTORY> 460,200
<CURRENT-ASSETS> 0
<PP&E> 745,100
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,024,500
<CURRENT-LIABILITIES> 0
<BONDS> 1,185,100
0
0
<COMMON> 78,100
<OTHER-SE> 1,602,900
<TOTAL-LIABILITY-AND-EQUITY> 6,024,500
<SALES> 3,601,700
<TOTAL-REVENUES> 3,752,200
<CGS> 3,037,400
<TOTAL-COSTS> 3,119,300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 5,900
<INTEREST-EXPENSE> 9,400
<INCOME-PRETAX> 321,300
<INCOME-TAX> 116,000
<INCOME-CONTINUING> 205,300
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 205,300
<EPS-PRIMARY> 2.63
<EPS-DILUTED> 2.61
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated statements of income for the three months ended March 31, 1998 and
1997, and the consolidated balance sheets, March 31, 1998, and December 31,
1997, of PACCAR Inc and Subsidiaries and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 293,100
<SECURITIES> 330,900
<RECEIVABLES> 3,682,200
<ALLOWANCES> 0
<INVENTORY> 430,400
<CURRENT-ASSETS> 0
<PP&E> 666,400
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,747,700
<CURRENT-LIABILITIES> 0
<BONDS> 1,300,600
0
0
<COMMON> 78,100
<OTHER-SE> 1,510,900
<TOTAL-LIABILITY-AND-EQUITY> 5,747,700
<SALES> 1,752,300
<TOTAL-REVENUES> 1,825,400
<CGS> 1,478,400
<TOTAL-COSTS> 1,518,300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 2,400
<INTEREST-EXPENSE> 4,500
<INCOME-PRETAX> 157,100
<INCOME-TAX> 56,700
<INCOME-CONTINUING> 100,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 100,400
<EPS-PRIMARY> 1.29
<EPS-DILUTED> 1.28
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1997,
1996, AND 1995, AND FROM THE CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 1997
AND 1996 OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 337,900
<SECURITIES> 357,000
<RECEIVABLES> 3,567,500
<ALLOWANCES> 73,300
<INVENTORY> 393,500
<CURRENT-ASSETS> 0
<PP&E> 1,294,600
<DEPRECIATION> 572,900
<TOTAL-ASSETS> 5,599,400
<CURRENT-LIABILITIES> 0
<BONDS> 1,334,300
0
0
<COMMON> 77,800
<OTHER-SE> 1,420,000
<TOTAL-LIABILITY-AND-EQUITY> 5,599,400
<SALES> 6,479,400
<TOTAL-REVENUES> 6,763,700
<CGS> 5,549,300
<TOTAL-COSTS> 5,700,800
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 11,400
<INTEREST-EXPENSE> 17,600
<INCOME-PRETAX> 534,700
<INCOME-TAX> 190,100
<INCOME-CONTINUING> 344,600
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 344,600
<EPS-PRIMARY> 4.43
<EPS-DILUTED> 4.41
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 1997 AND 1996, AND THE CONDENSED CONSOLIDATED BALANCE SHEETS, SEPTEMBER 30,
1997 AND DECEMBER 31, 1996 OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 231,400
<SECURITIES> 352,800
<RECEIVABLES> 3,398,200
<ALLOWANCES> 0
<INVENTORY> 432,500
<CURRENT-ASSETS> 0
<PP&E> 686,800
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,420,400
<CURRENT-LIABILITIES> 0
<BONDS> 1,403,000
0
0
<COMMON> 77,800
<OTHER-SE> 1,426,800
<TOTAL-LIABILITY-AND-EQUITY> 5,420,400
<SALES> 4,675,200
<TOTAL-REVENUES> 4,884,000
<CGS> 4,023,800
<TOTAL-COSTS> 4,135,500
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 4,900
<INTEREST-EXPENSE> 13,100
<INCOME-PRETAX> 327,500
<INCOME-TAX> 115,600
<INCOME-CONTINUING> 211,900
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 211,900
<EPS-PRIMARY> 2.72
<EPS-DILUTED> 2.71
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated statements of income for the six months ended June 30, 1997 and
1996, and the condensed consolidated balance sheets, June 30, 1997, and December
31, 1996, of PACCAR Inc and Subsidiaries and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 228,000
<SECURITIES> 298,000
<RECEIVABLES> 3,338,500
<ALLOWANCES> 0
<INVENTORY> 403,600
<CURRENT-ASSETS> 0
<PP&E> 696,200
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,277,300
<CURRENT-LIABILITIES> 0
<BONDS> 1,517,800
0
0
<COMMON> 77,800
<OTHER-SE> 1,362,400
<TOTAL-LIABILITY-AND-EQUITY> 5,277,300
<SALES> 3,036,000
<TOTAL-REVENUES> 3,173,500
<CGS> 2,621,700
<TOTAL-COSTS> 2,695,600
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 3,000
<INTEREST-EXPENSE> 8,300
<INCOME-PRETAX> 199,500
<INCOME-TAX> 70,100
<INCOME-CONTINUING> 129,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 129,400
<EPS-PRIMARY> 1.66
<EPS-DILUTED> 1.66
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND
1996, AND THE CONDENSED CONSOLIDATED BALANCE SHEETS, MARCH 31, 1997, AND
DECEMBER 31, 1996, OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 190,700
<SECURITIES> 293,500
<RECEIVABLES> 3,320,400
<ALLOWANCES> 0
<INVENTORY> 384,900
<CURRENT-ASSETS> 0
<PP&E> 701,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,206,800
<CURRENT-LIABILITIES> 0
<BONDS> 1,139,000
0
0
<COMMON> 466,700
<OTHER-SE> 918,300
<TOTAL-LIABILITY-AND-EQUITY> 5,206,800
<SALES> 1,444,800
<TOTAL-REVENUES> 1,512,900
<CGS> 1,255,000
<TOTAL-COSTS> 1,291,500
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1,700
<INTEREST-EXPENSE> 4,100
<INCOME-PRETAX> 88,700
<INCOME-TAX> 30,800
<INCOME-CONTINUING> 57,900
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 57,900
<EPS-PRIMARY> .74
<EPS-DILUTED> .74
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1996,
1995, AND 1994, AND FROM THE CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 1996
AND 1995 OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 222,900
<SECURITIES> 304,900
<RECEIVABLES> 3,366,100
<ALLOWANCES> 68,700
<INVENTORY> 406,500
<CURRENT-ASSETS> 0
<PP&E> 1,330,200
<DEPRECIATION> 552,700
<TOTAL-ASSETS> 5,298,800
<CURRENT-LIABILITIES> 0
<BONDS> 1,144,900
0
0
<COMMON> 466,400
<OTHER-SE> 891,600
<TOTAL-LIABILITY-AND-EQUITY> 5,298,800
<SALES> 4,334,400
<TOTAL-REVENUES> 4,602,300
<CGS> 3,737,300
<TOTAL-COSTS> 3,884,900
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 5,700
<INTEREST-EXPENSE> 4,200
<INCOME-PRETAX> 312,900
<INCOME-TAX> 111,900
<INCOME-CONTINUING> 201,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 201,000
<EPS-PRIMARY> 2.59
<EPS-DILUTED> 2.59
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 1996 AND 1995, AND THE CONDENSED CONSOLIDATED BALANCE SHEETS, SEPTEMBER 30,
1996, AND DECEMBER 31, 1995, OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 132,500
<SECURITIES> 500,600
<RECEIVABLES> 2,917,000
<ALLOWANCES> 0
<INVENTORY> 217,900
<CURRENT-ASSETS> 0
<PP&E> 466,100
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,440,100
<CURRENT-LIABILITIES> 0
<BONDS> 1,120,500
0
0
<COMMON> 466,300
<OTHER-SE> 895,900
<TOTAL-LIABILITY-AND-EQUITY> 4,440,100
<SALES> 3,116,300
<TOTAL-REVENUES> 3,316,600
<CGS> 2,700,800
<TOTAL-COSTS> 2,811,700
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 3,900
<INTEREST-EXPENSE> 1,700
<INCOME-PRETAX> 219,200
<INCOME-TAX> 80,700
<INCOME-CONTINUING> 138,500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 138,500
<EPS-PRIMARY> 1.79
<EPS-DILUTED> 1.79
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated statements of income for the six months ended June 30, 1996 and
1995, and the condensed consolidated balance sheets, June 30, 1996, and December
31, 1995, of PACCAR Inc and Subsidiaries and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 115,900
<SECURITIES> 454,600
<RECEIVABLES> 2,938,100
<ALLOWANCES> 0
<INVENTORY> 219,300
<CURRENT-ASSETS> 0
<PP&E> 445,100
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,375,200
<CURRENT-LIABILITIES> 0
<BONDS> 1,132,700
0
0
<COMMON> 466,300
<OTHER-SE> 854,800
<TOTAL-LIABILITY-AND-EQUITY> 4,375,200
<SALES> 2,067,200
<TOTAL-REVENUES> 2,200,700
<CGS> 1,792,400
<TOTAL-COSTS> 1,866,400
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 2,700
<INTEREST-EXPENSE> 1,100
<INCOME-PRETAX> 138,400
<INCOME-TAX> 51,000
<INCOME-CONTINUING> 87,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 87,400
<EPS-PRIMARY> 1.13
<EPS-DILUTED> 1.13
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1996
AND 1995, AND THE CONDENSED CONSOLIDATED BALANCE SHEETS, MARCH 31, 1996, AND
DECEMBER 31, 1995, OF PACCAR INC. AND SUBSIDIARIES AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 120,800
<SECURITIES> 416,000
<RECEIVABLES> 2,928,000
<ALLOWANCES> 0
<INVENTORY> 232,300
<CURRENT-ASSETS> 0
<PP&E> 429,600
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,333,500
<CURRENT-LIABILITIES> 0
<BONDS> 1,176,400
0
0
<COMMON> 466,300
<OTHER-SE> 810,200
<TOTAL-LIABILITY-AND-EQUITY> 4,333,500
<SALES> 1,027,900
<TOTAL-REVENUES> 1,094,800
<CGS> 895,000
<TOTAL-COSTS> 932,300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1,100
<INTEREST-EXPENSE> 600
<INCOME-PRETAX> 55,800
<INCOME-TAX> 20,100
<INCOME-CONTINUING> 35,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 35,700
<EPS-PRIMARY> .46
<EPS-DILUTED> .46
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995,
1994, AND 1993, AND FROM THE CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 1995
AND 1994 OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 184,000
<SECURITIES> 437,300
<RECEIVABLES> 2,953,600
<ALLOWANCES> 62,600
<INVENTORY> 239,500
<CURRENT-ASSETS> 0
<PP&E> 866,800
<DEPRECIATION> 394,700
<TOTAL-ASSETS> 4,390,500
<CURRENT-LIABILITIES> 0
<BONDS> 1,160,300
0
0
<COMMON> 466,300
<OTHER-SE> 784,900
<TOTAL-LIABILITY-AND-EQUITY> 4,390,500
<SALES> 4,592,900
<TOTAL-REVENUES> 4,850,400
<CGS> 3,950,700
<TOTAL-COSTS> 4,094,200
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 14,400
<INTEREST-EXPENSE> 2,000
<INCOME-PRETAX> 399,600
<INCOME-TAX> 146,800
<INCOME-CONTINUING> 252,800
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 252,800
<EPS-PRIMARY> 3.25
<EPS-DILUTED> 3.25
</TABLE>
