Armstrong to Succeed Pigott as Paccar Inc. CEO in April

This story appears in the Dec. 23 & 30 print edition of Transport Topics.

Paccar Inc. announced that Ronald Armstrong will become CEO in April, succeeding Mark Pigott, who has led the global truck manufacturer for 17 years.

Pigott, who has been Paccar’s chairman and CEO since 1997, will remain with the company as executive chairman of the board of directors.

He will hand the CEO reins over on April 27 to Armstrong, making him the first person outside the Pigott family to run Paccar in nearly 50 years.

Armstrong, 58, has been Paccar’s president since January 2011 and a company employee for 20 years.

“I am grateful to Mark and the board for the privilege to lead Paccar and our 22,000 employees in our goal of delivering profitable growth and excellent shareholder returns,” Armstrong said in a Dec. 16 announcement.

Armstrong said his appointment does not represent a major shift in the direction of the company.

“Our strategic plans have been developed with our executive team and the board,” he told Transport Topics. “We’re all supportive of our direction, and we’ll continue to evaluate that on an ongoing basis.”

Paccar, based in Bellevue, Wash., is the parent of Kenworth Truck Co. and Peterbilt Motors Co.

Paccar also owns DAF Trucks, which builds and sells trucks in Europe, and exports them to other markets. In October, the company opened a DAF factory in Brazil to build trucks for the South American market.

When Pigott, 59, was asked about the reason for the management change, he simply said the “timing is perfect.”

“The company’s in fantastic shape. We’re celebrating 108 years. We’ve just introduced our broadest range of trucks and engines,” he said. “This is the brightest group we’ve ever had at Paccar.”

Paccar’s earnings jumped 32% in the third quarter from a year earlier on increased truck deliveries and record results at its parts and financial service businesses.

The company posted quarterly net income of $309.4 million, or 87 cents per share, compared with $233.6 million, or 66 cents. Revenue rose 13% to $4.3 billion.

For 2012, Paccar reported net income of $1.11 billion, or $3.12 per share, up from $1.04 billion, or $2.86, in 2011.

Pigott said he will help guide Paccar’s strategies and long-term direction while Armstrong assumes the daily leadership of the company.

Armstrong also will join Paccar’s board of directors.

Paccar also appointed Chief Financial Officer Robert Christensen to the additional office of president, effective April 27.

Pigott was the fourth member of his family to lead Paccar, which was founded by his great-grandfather. He succeeded his father, Charles, as chairman and CEO.

During Pigott’s tenure, Paccar generated a shareholder return of more than 1,350% and achieved record net income, revenues, shareholder equity and market share, the company said.

“We’re manufacturing trucks on every continent with the exception of Antarctica,” Pigott said. “We’re poised for excellent growth in all of our markets in all of our industries. As a global technology company, we have a lot to be proud of, and it’s only just the beginning.”

Paccar’s history began in 1905, when William Pigott Sr. founded its precursor, Seattle Car Manufacturing Co., which produced railway and logging equipment.

That company, which later became Pacific Car and Foundry Co., entered the heavy-duty truck market in 1945 with its acquisition of Kenworth Motor Truck Co. and went on to purchase Peterbilt Motors Co. in 1958. The company adopted Paccar Inc. as its name in 1972.

Today, Paccar is the second-largest Class 8 truck manufacturer in the United States behind Daimler Trucks North America.

Through November, Paccar had captured 27.3% of the U.S. market in 2013, with its Kenworth brand posting market share of 13.8% and Peterbilt accounting for 13.5%. The Paccar companies trailed only DTNA’s Freightliner, which had 36.9% market share, and Navistar’s International brand, with 14.7%.