MIRA INFORM REPORT

Report No. :	492041
Report Date :	13.02.2018

IDENTIFICATION DETAILS

Name :	PACCAR INC
Registered Office :	251 Little Falls Drive, Wilmington New Castle, De 19808
Country :	United States
Financials (as on) :	31.12.2016
Year of Establishment :	1905
Legal Form :	Corporation
Line of Business :	Subsidiaries, designs, manufacture, and distributes light, medium, and heavy-duty commercial trucks worldwide.
No. of Employees :	23000

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the most technologically powerful economy in the world, with a per capita GDP of $57,300. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.

Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures.

In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.

In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and further reduce them as conditions warranted; the Fed ended the purchases during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since before the global recession began; inflation stood at 1.7%, and public debt as a share of GDP continued to decline, following several years of increases. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With US GDP growth below 2%, the Fed has opted to raise rates three times since then, and in mid-June 2017, the range for the target rate stood at 1% to 1.25%

Source : CIA

STATUTORY INFORMATION

Order:

PACCAR WINCH DIVISION

/It is a division of PACCAR INC/

Address in the order:

800 East Dallas Street, PO Box No 457, Broken Arrow, OK USA 74012 United States

Legal Name:

PACCAR INC

Trade Name:

Braden Cargo Gearmatic

ID:

776583

Date Created:

1905

Date Incorporated:

11/19/1971

Legal Address:

251 LITTLE FALLS DRIVE

WILMINGTON New Castle

DE 19808, USA

Operative Address:

777 - 106th Avenue N.E.
Bellevue, WA 98004
United States

Telephone:

(918) 251-8511

Fax:

(918) 259-1575

Legal Form:

Corporation

Email:

winchsales@paccar.com

Registered in:

Oklahoma

Website:

www.paccarwinch.com

Contact:

Mike Telly

Staff:

23 000

Industry:

Construction Machinery Manufacturing Industry

Banks

The Bank of New York Mellon Trust Company, N.A.

The Company has line of credit arrangements of $3.43 billion, of which $3.26 billion were unused at December 31, 2015. Included in these arrangements are $3.0 billion of syndicated bank facilities, of which $1.0 billion expires in June 2016, $1.0 billion expires in June 2019 and $1.0 billion expires in June 2020. The Company intends to replace these credit facilities on or before expiration with facilities of similar amounts and duration. These credit facilities are maintained primarily to provide backup liquidity for commercial paper borrowings and maturing medium-term notes. There were no borrowings under the syndicated bank facilities for the year ended December 31, 2015.

On September 21, 2015, the Company completed the repurchase of $300.0 million of the Company’s common stock under authorizations approved in December 2011. On September 23, 2015, PACCAR’s Board of Directors approved the repurchase of an additional $300.0 million of the Company’s common stock, and as of December 31, 2015, $136.3 million of shares have been repurchased pursuant to the 2015 authorization.

At December 31, 2015 and December 31, 2014, the Company had cash and cash equivalents and marketable debt securities of $1.82 billion and $1.60 billion, respectively, which are considered indefinitely reinvested in foreign subsidiaries.

HISTORY

PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

PACCAR Inc Key Developments

PACCAR Inc Declares a Quarterly Cash Dividend, Payable on December 5, 2017

Sep 12 17

PACCAR Inc’s Board of Directors declared a quarterly cash dividend of 25 cents ($0.25) per share, payable on December 5, 2017, to stockholders of record at the close of business on November 14, 2017.

PRINCIPAL ACTIVITY

PACCAR Inc, together with its subsidiaries, designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks worldwide.

Products/Services description:

It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of freight, petroleum, wood products, and construction-related and other materials, as well as manufactures engines. The company sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full service leasing operations under the PacLease trade name. This segment provides equipment financing and administrative support services for its franchisees; retail loans and leasing services for small, medium, and large commercial trucking companies, as well as independent owner/operators and other businesses; and truck inventory financing services to independent dealers. In addition, it offers loans and leases directly to customers for acquisition of trucks and related equipment. The company also manufactures and sells industrial winches under the Braden, Carco, and Gearmatic nameplates.

Brands:

BRADEN GEARMATIC

Sales are:

Wholesale

Clients:

KAIZEN SYSTEMS LIMITADA
Colombia
Maquinaria Ucha Sa De Cv
Mexico
Tractocamiones Kenworth De Monterrey Sa De Cv
Mexico
ООО ФОРС-ДИЗЕЛЬ
Russia
GALANTE S A
Colombia
TERMECO SRL
Paraguay

Suppliers:

NA

Operations area:

National and international

The company exports to

Colombia, Mexico, Russia, Paraguay

The subject employs

On December 31, 2015, the Company had approximately 23,000 employees.

Payments:

Regular

LOCATION

Headquarters :

777 - 106th Avenue N.E.
Bellevue, WA 98004
United States

Comments:

777 106th Ave NE
This business is located at 777 106th Ave NE, a commercial address in Bellevue, WA.

Estimated Value

The office building has an estimated value of $25.8 million, which is 779% higher than the $2,935,020 average for office buildings in the area. When the building was last assessed in 2011, the assessment value was $25,479,400.

Property Size

With 173,500 sq ft of space, this building is one of the largest office buildings in the 98004 zip code. The average office building in the area has around 2,956 sq ft.

Fleet of Vehicles:

Sizable Fleet, Predominantly Tractor Trucks
Its vehicle fleet dwarfs the average fleet size among all federally-registered carriers.
Tractor trucks are the most common type of unit, accounting for about 79% of the fleet.

Branches:

PACCAR WINCH
800 E Dallas
Broken Arrow, OK 74012

Okmulgee Plant
1204 W 20th St
Okmulgee, OK 74447

Mailing Address
800 E Dallas
Broken Arrow, OK 74012

Subsidiaries:

PACCAR of Canada Ltd. Canada

PACCAR Australia Pty. Ltd. Australia

PACCAR Financial Pty. Ltd. (b) Australia

PACCAR Mexico, S.A. de C.V. Mexico

Kenworth Mexicana, S.A. de C.V. (c) Mexico

PACCAR Capital Mexico, S.A. de C.V. (c)  Mexico

PACCAR Parts Mexico, S.A. de C.V. (c) Mexico

PacLease Mexicana, S.A. de C.V. (c) Mexico

PACCAR Financial Mexico, S.A. de C.V. (d) Mexico

DAF Caminhões Brasil Indústria Ltda. (e) Brasil

DAF Trucks N.V. (e) Netherlands

DAF Trucks Vlaanderen N.V. (f) Belgium

DAF Trucks Limited (U.K.) (f) United Kingdom

DAF Trucks Deutschland GmbH (f) Germany

DAF Trucks France, S.A.R.L. (f) France

DAF Vehiculos Industriales S.A.U. (f) Spain

DAF Veicoli Industriali S.P.A. (f) Italy

DAF Trucks Polska SP.Z.O.O. (f) Poland

PACCAR Trucks U.K. Ltd. (e) England and Wales

PACCAR Parts U.K. Limited (g) England and Wales

Leyland Trucks Limited (h) England and Wales

PACCAR Engine Company Mississippi

PACCAR Financial Corp. Washington

PACCAR Financial Services Ltd. (i) Canada

PACCAR Financial Ltd. (j) Canada

PACCAR Sales North America, Inc. Delaware

PACCAR Holding B.V. (k) Netherlands

PACCAR Financial Europe B.V. (e) Netherlands

PACCAR Financial Holdings Europe B.V. (l) Netherlands

PACCAR Financial Belux BVBA (m) Belgium

PACCAR Financial Deutschland GmbH (m) Germany

PACCAR Leasing GmbH (m) Germany

PACCAR Financial Espana S.L.U. (m) Spain

PACCAR Financial France S.A.S. (m) France

PACCAR Financial Italia S.r.l. (m) Italy

PACCAR Financial PLC (m) United Kingdom

PACCAR Financial Nederland B.V. (m) Netherlands

PACCAR Financial Services Europe B.V. (m) Netherlands

Competitors:

Rotork Valvekits Inc.
Automatic Engineering Inc.
Rural Water District 8

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

Listed at the stock exchange:

PACCAR Inc. (PCAR)

Capital:

$17.86 billion

Shares Outstanding:

350,896,879 shares

Shareholders:

Direct Holders
Name	Shares
PIGOTT JOHN	1,565,126
PIGOTT MARK C	82,999
MOORE GARY LEE	47,757
CARNWATH ALISON J	27,178
SOBIC DANIEL D	26,226
WILLIAMSON CHARLES R	25,027
CHRISTENSEN ROBERT J.	23,159
BENGSTON ROBERT A.	21,319
ARMSTRONG RONALD E	20,821
BARKLEY MICHAEL T	18,933
Top Institutional Holders
Holder	Shares
Bank of America Corporation	27,601,921
Blackrock Inc.	25,508,314
Vanguard Group, Inc. (The)	24,555,355
State Street Corporation	14,829,114
Capital World Investors	11,820,500
Fiduciary Management, Inc.	6,794,718
Bank Of New York Mellon Corporation	6,071,129
FMR, LLC	4,205,902
Waddell & Reed Financial Inc.	3,957,787
Northern Trust Corporation	3,913,796
Top Mutual Fund Holders
Holder	Shares
Vanguard Total Stock Market Index Fund	7,811,153
Income Fund of America Inc	6,220,500
Washington Mutual Investors Fund	5,600,000
Vanguard 500 Index Fund	5,352,264
SPDR S&P 500 ETF Trust	4,009,936
Vanguard Institutional Index Fund-Institutional Index Fund	3,830,248
FMI Large Cap Fund	3,308,000
Powershares Exhg Traded Fd Tr-Powershares QQQ Tr, Series 1	2,737,746
Fidelity Contrafund Inc	2,443,080
Select Sector SPDR Fund-Industrial	2,083,085

Management:

R. E. Armstrong

Chief Executive Officer and Director

H. C. A. M. Schippers

Executive Vice President and Chief Financial Officer

M. T. Barkley

Senior Vice President and Controller

M. C. Pigott

Executive Chairman and Director

A. J. Carnwath

B. E. Ford

Director

K. S. Hachigian

Director

L. Kaufmann

Director

R. C. McGeary

Director

J. M. Pigott

Director

M. A. Schulz

Director

G. M. E. Spierkel

Director

C. R. Williamson

Director

M. C. Pigott

Attorney-in-Fact

FINANCIAL INFORMATION

We attach FS2016

PACCAR Inc. announced consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company's net sales and financial services revenues were $4.70 billion, compared to $4.41 billion in the second quarter of 2016.

The company earned net income of $373.0 million or $1.06 per diluted share in the second quarter compared to net income of $481.3 million or $1.37 per diluted share in the same period last year. The company earned adjusted net income (non-GAAP) of $371.7 million or $1.06 per diluted share in the second quarter of 2016, excluding a favorable, non-recurring $109.6 million adjustment related to the European Commission (EC) settlement.

Total income before income taxes was $539.0 million compared with $646.2 million a year ago. The company reported net income of $683.3 million or $1.94 per diluted share for the first six months of 2017. The company reported a net loss of $113.3 million or $0.32 per diluted share in the first six months of last year. The company reported adjusted net income (non-GAAP) of $719.7 million or $2.05 per diluted share in the first six months of 2016, excluding an $833.0 million non-recurring charge for the EC settlement. Net sales and financial services revenues for the first six months of 2017 were $8.94 billion compared to $8.71 billion last year. Total income before income taxes was $987.2 million compared with $216.6 million a year ago. Net cash provided by operating activities was $1,185.2 million compared with $1,649.4 million a year ago. Payments for property, plant and equipment was $188.3 million compared with $152.0 million a year ago.

LEGAL FILINGS

Legal Records

The Company and its subsidiaries are parties to various lawsuits incidental to the ordinary course of business. Except for the EC matter noted above, management believes that the disposition of such lawsuits will not materially affect the Company’s business or financial condition.

Trademarks

PACCAR Inc Trademarks

QUADRAFLEX
new and replacement suspensions for heavy-duty trucks
Owned by: PACCAR Inc
Serial Number: 74030529

KENWORTH
[ aftermarket heavy-duty truck parts and accessories; namely, metal locks ]
Owned by: PACCAR Inc
Serial Number: 74144264

TRUCKCARE
maintenance and repair of trucks
Owned by: PACCAR Inc
Serial Number: 74214125

AMERICAN CLASS
heavy duty truck upholstered cab and sleeper liner sold as a component of a truck
Owned by: PACCAR Inc
Serial Number: 74393290

AEROCAB
integrated cab for a truck sleeper
Owned by: PACCAR Inc
Serial Number: 74400505

STUDIO SLEEPER
components of truck cabs; namely, sleepers
Owned by: PACCAR Inc
Serial Number: 74403184
T2000
motor vehicles; namely, heavy duty trucks and tractors
Owned by: PACCAR Inc
Serial Number: 74418598

UCC filings

2011-242-1413-1 CG AUTOMATION & FIXTURE, INC. Initial 08/30/2011 08/30/2016
2011-318-8844-8 CG AUTOMATION & FIXTURE, INC. Initial 11/14/2011 11/14/2016
2011-318-8864-6 CG AUTOMATION & FIXTURE, INC. Initial 11/14/2011 11/14/2016

SUMMARY

Founded in 1905, PACCAR Inc, together with its subsidiaries, designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks worldwide.

It has 23 000 full time employees and reported net income of $683.3 million or $1.94 per diluted share for the first six months of 2017.

The company operates in the national and international area.

The company is ACTIVE without negative records.

RISK INFORMATION

DEBTS

Controlled

PAYMENTS

Regular

CASH FLOW

Normal

STATUS

ACTIVE

INTERVIEW

NAME

Mark 

POSITION

Assistant 

COMMENTS

The person contacted confirmed name, public information, address, management, name division and experience.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.28
UK Pound	1	INR 89.02
Euro	1	INR 78.93
USD	1	INR 64.23

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.