PACIFIC CAR AND FOUNDRY COMPANY ^P" annual report 1963

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PACIFIC CAR
AND FOUNDRY
COMPANY
^ P " annual report 1963
w
Wi
•USINESS A0M<NISrTRATIOr<
tlSRARY
Location Of
PACIFIC CAR AND FOUNDRY COMPANY DIVISIONS
Renton Division—1400 Fourth Avenue North, Renton, Washington 98055
Kenworth Motor Truck Company Division—8801 East Marginal Way South, Seattle, Washington 98108
Structural Steel Division—80 South Hudson Street, Seattle, Washington 98134
Kansas City Division—1301 North Manchester Trafficway, Kansas City, Missouri 64120
KW-Dart Truck Co.—1301 North Manchester Trafficway, Kansas City, Missouri 64120
Kenworth Motor Truck Company—5300 Kenworth Road, Kansas City, Missouri 64120
Peterbilt Motors Company Division—38801 Cherry Street, Newark, California 94560
Colorado Kenworth Co. Division—4901 York Street, Denver, Colorado 80216
Kenworth Sales & Service—Omaha Division—7502 L Street, Omaha, Nebraska 68127
Texas Kenworth Co. Division—7901 Harry Hines Boulevard, Dallas, Texas 75235
•
Sales Office and Parts Warehouse—4950 South Kilbourn Avenue, Chicago, Illinois 60632
Sales Office—842 Investment Building, 15th and K Streets, N.W., Washington, D. C. 20005
SUBSIDIARIES
Canadian Kenworth Ltd.—3750 Kitchener Street, North Burnaby 2, British Columbia
Sales Branches—Nanaimo, British Columbia; Edmonton, Alberta; Calgary, Alberta;
Winnipeg, Manitoba
Gearmatic Co. Ltd.—7400 132nd Street, North Surrey, British Columbia
Kenworth Mfg. Co.—437 North Columbia Boulevard, Portland, Oregon 97217
CORPORATE O F F I C E S - 1 4 0 0 F O U R T H A V E N U E N O R T H , R E N T O N , W A S H I N G T O N 9 8 0 5 5
PACIFIC CAR A N D FOUNDRY COMPANY
DIRECTORS
D. E. DOUGLAS
T. B. M O N S O N
THOMAS F . G L E E D
R. D. O ' B R I E N
J O H N G . HOLMSTROM
CHARLES M . PIGOTT
W I L L I A M G . REED
OFFirtFRS
R. D. O ' B R I E N
J O H N G . HOLMSTROM
President
Vice President
CHARLES M . PIGOTT
R. B . M O R A N
Executive Vice President
D. E. DOUGLAS
Vice President
M. E. O ' B Y R N E
Vice President-Treasurer
T. B . M O N S O N
Controller
W . H . SCUDDER
Vice President
GEORGE M . L H A M O N
Secretary-Assistant Treasurer
Assistant Vice President
HEADS OF DIVISIONS
T. B . MONSON, General Manager
Renton Division
BURTON C . JAMESON, General Manager
Struaural Steel Division
R. C. NORRIE, General Manager
Kenworth Motor Truck Company Division
D. F. PENNELL, General Manager
Peterbilt Motors Company Division
MURRAY AITKEN, General Manager
Kansas City Division
L. O. PRESTRUD, General Manager
Colorado Kenworth Co. Division
R. J. HUTCHINSON, General Manager
Texas Kenworth Co. Division
W. J. PEDEGANA, General Manager
Kenworth Sales & Service-Omaha Division
SUBSIDIARIES
W . J. FERGUSON, JR., President
Canadian Kenworth Ltd.
J O H N G . MORFITT, Vice President and General Manager
Gearmatic Co. Ltd.
J O H N G . HOLMSTROM, President
Kenworth Mfg. Co.
FINANCE
COMPANIES
D. E. DOUGLAS, President
Carco Acceptance Corporation
Track Acceptance Corporation
Overland Acceptance Ltd.
President's Message to the Stockholders . . . .
The year 1963 was an exceptionally good year for the Company and new records were
set in sales volume and net profit. Consolidated sales for the year amounted to $195.4 million
—a gain of $53 million over our former record year of 1962. Net profit after taxes was $7.53
million, as compared to $4.64 million in 1962. Earnings of $11.68 per share were recorded on
each of the shares now outstanding.
Dividends of 35 cents per share were paid in each of the four quarters. In addition, a 20%
stock dividend was delivered in January 1964 to stockholders of record on December 10, 1963.
A special year-end extra cash dividend of $1.00 per share was also paid in January, 1964 on all
stock outstanding, including the 20% stock dividend.
All of the operations of the Company, including the three non-consolidated Finance
Companies, contributed to the excellent performance during 1963. At the Renton Division,
activity was very strong. Railroad car production was at peak level the entire year. Orders were
received with sufficient lead time to assure continued production without loss of time between
various types of cars. Our Carco winch business was at its peak volume with new orders and
shipments at an all time high. In July we completed production of a military contract for a
c]uantity of M107-110 self-propelled artillery vehicles for the Ordnance Department, which
materially contributed to the volume of sales at this Division.
In the truck field, our Kenworth, Peterbilt and KW-Dart Divisions all produced new
sales records. Canadian Kenworth started the year slowly, but picked up momentum and
finished with sales close to their record year.
The Structural Division handled less volume than in 1962 when it completed the Century
21 World's Fair Space Needle, but the profit margin on the 1963 volume was good and
contributed to the excellent year.
We completed, in November, the new plant to manufacture Kenworth trucks in Kansas
City. This plant represents an investment of approximately $1,500,000 in buildings and equipment and will increase Kenworth's production capacity by 50%. It will provide a base of
operations for continued sales expansion in the Midwest and East. The first trucks off the new
assembly line were delivered in December. A new sales branch building was completed in
October to provide larger facilities for Canadian Kenworth's Edmonton, Alberta operation.
Ground was broken and a start made on the new Engineering and Accounting building located
at the Kenworth truck plant in Seattle. Estimated completion date is April 1964.
Additional expenditures were made for new and replacement machinery and equipment
at other Divisions totaling $1,100,000, which is the approximate amount of depreciation
charged for the year.
Our Subsidiary, Canadian Kenworth Ltd., acquired the Gearmatic Co. Ltd. in British
Columbia in October to supplement the Carco power winch line with smaller units and to
provide production facilities in Canada for winches to permit growth in this field in the future.
Borrowing from banks was reduced from $6,465,000 at the end of 1962 to $1,237,000 at
year-end 1963. Generally, the amounts borrowed during the year were at a low level and for a
portion of the months of November and December our bank loans were completely liquidated.
A payment of $800,000 was also made to Prudential Insurance Company on our $13,000,000
term loan and a note held by the General Services Administration issued in connection with
the purchase in 1958 of the Renton steel foundry, amounting to $360,000 at the end of 1962,
was paid off during the year.
Our backlog of orders at January 1 exceeded $100 million and new orders have continued
at high levels since that date. We had $17 million of military sales in 1963 which will not be
repeated this year and must be made up by additional commercial business. Hopefully, we
will come close to the same total sales volume this year.
Pjassible increases in material costs, higher contractual outlays for labor and heavy Kansas
City Kenworth start-up costs will all tend to cut into profits. Because of this, profits will be
somewhat lower than 1963 in my opinion, but 1964 should still be a good year for us.
Federal, state and local Government spending continues to rise both as to total dollars
and as a per cent of total income of the country. For example, in 1950 just 13 years ago, the
total Government expenditures were $61.1 billions and represented 21.5% of the Gross National Product while in 1963 they totaled $171.4 billions and 29.6% of the Gross National
Product. In our Company in 1963, out of our total sales income of $195.4 million, we paid
$12.2 million in taxes, while wages and salaries totaled $32.2 million and our stockholders
received $1.4 million in cash dividends. In addition, we withheld $5.1 million from our employees for income and social security taxes and collected from our customers $5.2 million
in state sales taxes and Federal excise taxes. Adding these taxes withheld and collected to those
levied against the Company, the total taxes paid to all segments of Government aggregated
$22.5 million or 16 times as much as was paid in dividends and 70% as much as was paid to
all of our employees. The tax cut now enacted by Congress is a step in the right direction, but
each of us should exert whatever influence possible to stop this growing Government expenditure so that the regressive pressure of the tax burden will not further hamper the growth of
the country.
The Annual Stockholders Meeting was held January 22 at the Kenworth plant and the
directors listed on page 3 were elected at that time. The officers of the Company were elected
at the Organization Meeting of the Board held the same day.
To the many people who contributed to our 1963 results—our customers, our stockholders,
our officers and our employees, the Board joins me in thanking you for your confidence in the
Company. We look forward to future progress together.
C^AdC'^ 6BA
March 31, 1964
President
PACIFIC CAR A N D F O U N D R Y C O M P A N Y A N D C O N S O L I D A T E D
SUBSIDIARIES
Consolidated Financial Position
ASSETS
December 3 1 , 1 9 6 3
LIABILITIES
December 3 1 , 1 9 6 3
CURRENT LIABILITIES
CURRENT ASSETS
$ 3,686,692
Cash
Trade notes and accounts receivable
$12,860,540
Less allowance for possible losses
150,000
12,710,540
Bank loans — unsecured
$ 1,237,200
Accounts payable
12,416,285
Salaries and wages
2,088,283
Payroll and withholding taxes
636,371
State, local, and excise taxes
Inventories of production materials, work in process, service
parts, and finished products:
1,121,729
Customers' deposits
At cost under last-in, first-out method — Note A
$34,471,273
At lower of cost (first-in, first-out method) or market
88,481
Dividend payable
644,626
Taxes on income — estimated
4,181,717
5,398,884
Current installment on long-term debt
$38,652,990
Less progress billings to customers
1,345,154
Prepaid expenses
800,000
TOTAL CURRENT LIABILITIES
$24,431,859
37,307,836
274,599
TOTAL CURRENT ASSETS
$53,979,667
LONG-TERM DEBT
Unsecured note payable to insurance company — Note C
INVESTMENTS AND OTHER ASSETS
Less current installment
$12,200,000
800,000
11,400,000
Unconsolidated wholly-owned finance company subsidiaries:
Common Stocks — at cost
$ 4,610,000
Advances — Note B
1,000,000
Equity in undistributed earnings
1,586,861
RESERVE
$ 7,196,861
Sundry other assets
327,781
For specific contingencies
300,000
7,524,642
STOCKHOLDERS' INVESTMENT-Note D
PROPERTY, PLANT, AND EQUIPMENT-on the basis of cost
Common Stock, par value $20 a share:
Land
Buildings
Machinery and equipment
$
951,309
Authorized 750,000 shares
Issued (including 1,135 shares in treasury) 645,760 shares
$10,047,927
Capital in addition to par value of shares
11,328,547
Retained earnings
$21,376,474
Less allowances for depredation
8,834,010
6
10,302,748
15,723,973
$38,941,921
12,542,464
13,493,773
$74,998,082
See notes to financial statements.
$12,915,200
Less Common Stock in treasury — 1,135 shares — at cost
75,698
38,866,223
$74,998,082
•'•
i.
PACIFIC CAR A N D F O U N D R Y C O M P A N Y A N D C O N S O L I D A T E D
Consolidated Operations and
Retained Earnings
SUBSIDIARIES
Financial and Operating Connparisons
Year ended December 3 1 , 1 9 6 3
1962
1963
1961
I960
RESULTS OF OPERATIONS
N e t sales
Net sales
Costs and expenses:
Cost of products sold
Selling and administrative expenses
$195,392,703
Earnings before income taxes, etc.
$173,552,688
$141,701,051
$120,002,756
180,548,545
132,836,883
113,077,988
$ 14,844,158
179,627,309
$ 15,765,394
Other deductions — net
921,236
$
O t h e r — net earnings of unconsolidated
finance company subsidiaries
NET
$ 14,844,158
Taxes on income — estimated
$
7,709,252
Taxes on income
6,074,621
EARNINGS BEFORE TAXES ON
INCOME AND EARNINGS OF
UNCONSOLIDATED SUBSIDIARIES
$195,392,703
Costs and expenses
EARNINGS
7,134,906
$
7,530,271
$
$11.68
N e t earnings p e r share (see b e l o w )
$
4,296,412
4,636,658
6,924,768
$
6,974,613
3,520,410
$
3,454,203
3,649,353
$
3,275,415
237,004
340,246
395,365
$
8,864,168
4,567,756
$128,337,583
121,362,970
$
3,512,419
243,971
$
$5.74
$5.45
$7.19
3,698,174
7,709,252
$
Earnings of unconsolidated finance company subsidiaries
7,134,906
STOCKHOLDERS' INVESTMENT
IN THE BUSINESS
$ 38,866,223
395,365
NET EARNINGS
$
Retained earnings at beginning of year
7,530,271
23,024,124
$ 32,747,047
$ 29,031,967
$60.29
$ 26,345,233
$45.04
$50.80
$40.87
Net worth per share (see below)
$ 11,400,000
$ 12,500,000
$ 13,360,000
$
8,220,000
$ 53,979,667
$ 51,948,320
$ 42,063,675
$ 40,346,365
24,431,859
24,771,010
18,469,441
19,754,371
$ 29,547,808
$ 27,177,310
$ 23,594,234
$ 20,591,994
2.21 to 1
2.10 to 1
2.28 to 1
2.04 to 1
LONG-TERM DEBT
$ 30,554,395
Less dividends declared:
In common stock — at market value — Note D
In cash — $2.40 a share
RETAINED EARNINGS AT END OF YEAR
WORKING CAPITAL
$ 13,433,688
1,396,734
14,830,422
$ 15,723,973
Provision for depreciation of property, plant,
and equipment for the year amounted to $1,109,625.
Current assets
Current liabilities
WORKING CAPITAL
Ratio of current assets to
current liabilities
CHANGES IN WORKING CAPITAL
Notes to Financial Statements:
Sources of w o r k i n g capital:
NOTE A—The current replacement cost of that portion of inventories priced at last-in, first-out (Lifo) cost exceeded the amount so stated
($34,471,273) by $2,751,947. This compares with an inventory difference due to Lifo of $2,729,342 at December 31, 1962.
N e t earnings
NOTE B—Advances to finance company subsidiaries include amounts subordinated by the Company in connection with agreements between
Truck Acceptance Corporation and Overland Acceptance Ltd, and their respective banks for loans and accommodations made by the latter with
respect to the financing of notes and contracts for the sale of motor vehicles, as referred to in the notes to their respective financial statements.
At December 31, 1963, such subordinated advances amounted to $100,000 for Truck Acceptance Corporation and $93,000 (U.S. dollar equivalent) for Overland Acceptance Ltd. In addition, the Company is a limited guarantor of the agreements with respect to which its aggregate
maximum guarantee of these two subsidiaries' obligations was approximately $1,900,000 at December 31, 1963.
L o n g - t e r m loan
NOTE C—Under the terms of a loan agreement with the insurance company, executed June 28, 1961 and modified in 1962, the 5 % %
note evidencing the loan is payable $800,000 on each June 15th from 1964 to 1972, and $1,000,000 on each June 15th from 1973 to 1977.
The loan agreement, among other matters, requires maintenance of $16,000,000 of consolidated working capital, as defined therein, limits
investments in and advances to unconsolidated subsidiaries to $8,000,000, and limits guaranty of obligations of such subsidiaries to $3,000,000.
Dividend payments (other than in stock) plus net acquisition of stock are likewise limited, to an amount equal to 60% of consolidated net
earnings from January 1, 1961 after deducting annual installments payable on the loan, plus $750,000.
NOTE D — A t meetings held on December 11, 1962 and December 3, 1963, the Board of Directors declared special dividends of 10% and
20% respectively, issuable in 1963 in common stock of the Company. The payment of such dividends resulted in the issuance of a total of
156,547 additional shares and the transfer of $13,433,688 (approximate total market value of these shares on the respective payment or issue
dates) from the retained earnings account, of which $3,130,940 was credited to the common stock account (par value of the shares) and
$10,302,748 was credited to the capital surplus account (capital in addition to par value of shares).
8
$
Depreciation provisions
Total additions
7,530,271
$ 4,636,658
1,109,625
1,075,396
— 0 —
$
$
5,712,054
1,396,734
$
926,523
$
886,030
$ 9,598,449
3,698,174
832,875
— 0 —
5,200,000
— 0 —
$ 8,639,896
3,512,419
$ 4,531,049
E x p e n d i t u r e s of w o r k i n g capital:
Cash dividends
$
Property, plant, and e q u i p m e n t
Investment in and advances to
unconsolidated subsidiaries
(reduction*)
Installments on long-term debt
O t h e r items ( r e d u c t i o n * )
T o t a l expenditures
INCREASE (DECREASE*)
IN W O R K I N G CAPITAL
3,113,611
$
706,357
$
729,957
1,522,101
1,173,956
2,498,986
1,259,754*
•
4,537,004
1,193,971
1,100,000
860,000
60,000
660,000
63,688
80,108
118,893
595,365
209,166*
$ 6,269,398
$
2,128,978
$
6,596,210
$ 4,873,748
$
$
3,583,076
$
3,002,239
$
2,370,498
Note—Earnings and net worth per share are computed on 644,625 shares outstanding on December 31, 1963.
342,699*
CARCO ACCEPTANCE C O R P O R A T I O N - S t a t e m e n t of Financial Position
December 3 1 , 1963
ASSETS
Cash
Notes, contracts, and other receivables (net of unearned interest $934,112)
Less allowance for possible losses
Equipment leased to others (net of depredation $124,455)
Investment in real estate
$
$15,062,880
171,782
908,502
14,891,098
271,216
210,600
$16,281,416
LIABILITIES
Bank loans—Note A
Accounts payable
Taxes on income—estimated
Amounts payable to dealers and others upon collection of notes and contracts
Notes payable to insurance company—Note A:
Unsubordinated
Subordinated
Stockholder's investment:
Common Stock, par value $100 a share:
Authorized 50,000 shares
Issued and outstanding 45,000 shares
Retained earnings
$ 4,500,000
51,822
241,150
371,168
$ 4,500,000
1,500,000
$ 4,500,000
617,276
6,000,000
5,117,276
$16,281,416
Notes:
Note A—The Company's indebtedness under its credit agreement with a group of banks, executed on June 30, 1961 and subsequently
amended, is payable in various amounts during the first six months of 1964.
The loan from the insurance company, under an agreement executed on June 28, 1962 and maturing on June 15, 1977, provides
for long-term financing in the amounts of $4,500,000 (unsubordinated) at 6% per annum and $1,500,000 (subordinated to the bank
loans above and other indebtedness) at 61/2% per annum. Prepayments of the indebtedness, in whole or in part, are permitted at
specified premiums by years, commencing in 1968. In addition, prepayment as a whole, without premium, is permitted under certain
refinancing provisions set forth in the agreement.
Both agreements, among other matters, impose certain restrictions on corporate actions, limit or prohibit purchase or redemption
of capital stock, limit the payment of dividends, and require maintenance of various asset-debt-capital ratios, with respect to all of which
provisions no default existed at December 31, 1963.
Note B—The Company is contingently liable to three banks in the aggregate amount of $305,000 in connection with dealers' truck
flooring arrangements.
OVERLAND ACCEPTANCE LTD. —Statement of Financial Position
December 3 1 , 1963
ASSETS
Cash
Notes, contracts, and other receivables (net of unearned interest $351,657)—
$3,614,199 pledged as security for bank loans—Note A
Less allowance for possible losses
Inventory of repossessed trucks—at lower of acquisition cost or net realizable value
Equipment leased to others (net of depreciation $109,860)
$
$3,472,613
88,585
117,841
3,384,028
34,708
112,957
$3,649,'534
LIABILITIES
Bank loans—secured by pledge of notes and contracts receivable—Note A
Accounts payable
Taxes on income—estimated
Amounts payable to dealers and others upon collection of notes and contracts
Advances by parent company—Pacific Car and Foundry Company—Note A
Stockholder's investment:
Common Stock, par value $1.00 a share:
Authorized and issued 10,000 shares
Retained earnings
$3,029,940
22,901
6,189
30,175
300,000
$
10,000
250,329
260,329
$3,649,534
Notes:
The amounts reflected in the statement are expressed in U.S. dollars.
Note A—The Company's banking arrangement, executed August 21, 1958 and subsequently amended, provides for a revolving credit of
$4,700,000 ($4,371,000 U.S.) for the purpose of enabling the Company to acquire eligible notes and contracts from Canadian Kenworth
Ltd., a wholly-owned (consolidated) subsidiary of Pacific Car and Foundry Company. Sufficient collateral must be pledged thereunder
to maintain the loan balance at not more than 90% of the unpaid balance of such collateral. The agreement further provides, in part, for
the substitution of collateral up to an amount equal to 2 5 % of the total bank loans outstanding, in the event the collateral, because of
certain delinquencies, is insufficient, and also requires the subordination of the first $100,000 ($93,000 U.S.) of the Company's indebtedness
owed to the parent company or any of its subsidiaries.
Note B—The Company is contingently liable in the amount of $570,000 ($530,100 U.S.) with respect to installment paper of like amount
sold by it to its bank. Payment of such paper has been insured to the extent of 8 5 % and no loss is presently expected by the Company.
10
TRUCK ACCEPTANCE CORPORATION-Statement of Financial Position
December 3 1 , 1963
ASSETS
$ 107,052
1,187,539
504,613
13,254
Cash
Notes, contracts, and other receivables (net of unearned interest $104,422)
Due from banks upon their collection of notes and contracts—Note A
Other assets
$1,812,458
LIABILITIES
Accounts payable
Taxes on income—estimated
Amounts payable to dealers and others upon collection of notes and contracts
Advances by parent company—Pacific Car and Foundry Company—Note A
Stockholder's investment:
Common Stock, par value $10 a share:
Authorized and issued 10,000 shares
Retained earnings
$
$100,000
719,256
23,049
18,066
252,087
700,000
819,256
$1,812,458
Notes:
The financial statement has been prepared on the cash basis of accounting except that provision has been made for income taxes. If other
items were stated on the accrual basis the efi^ect upon amounts reflected in the statement and upon net earnings would not be material.
Note A—Under the terms of the Cornpany's financing agreement with a group of banks, executed on April 30, 1962 and subsequently
amended, which provides for a revolving credit of $6,500,000, certain notes and contracts (principally foreign) for the sale of motor
vehicles are sold to the banks at face amount less finance charges included therein. At December 31, 1963, the unpaid balances of paper
so held by the banks aggregated $4,980,918. The Company, among other matters, has a liability to repurchase delinquent paper under
certain*conditions and is required to maintain a cash reserve with the banks equal to 10% of the banks' investment in paper.
The agreement also requires subordination of advances to the Company by Pacific Car and Foundry Company, depending upon
ceitain circumstances. At December 31, 1963, the amount so subordinated amounted to $100,000.
Note B—The Company is contingently liable to a bank in the amount of $67,000 in connection with a dealer's truck flooring arrangement.
EfiMST & ERNST
Board of Directors and Stockholders
Pacific Car and F o u n d r y C o m p a n y
Renton, W a s h i n g t o n
W e have examined the financial statements of Pacific Car and F o u n d r y C o m p a n y and its consolidated subsidiaries,
and the financial statements of Carco Acceptance Corporation, T r u c k Acceptance Corporation, and O v e r l a n d Acceptance
Ltd., wholly-owned unconsolidated subsidiaries, for the year ended December 3 1 , 1 9 6 3 . O u r examinations were m a d e in
accordance with generally accepted auditing standards, and accordingly included such tests of t h e accounting records and
such other auditing procedures as we considered necessary in the circumstances.
In our opinion, t h e accompanying statements of consolidated financial position and consolidated operations and
retained earnings present fairly t h e financial position of Pacific Car and F o u n d r y C o m p a n y and its consolidated subsidiaries at December 3 1 , 1 9 6 3 , and the consolidated results of their operations for t h e year t h e n ended, and the statements
of
financial
position of Carco Acceptance Corporation, T r u c k Acceptance Corporation, and O v e r l a n d Acceptance Ltd.
present fairly their respective financial positions at December 3 1 , 1 9 6 3 , all in conformity w i t h generally accepted accounti n g principles applied on a basis consistent w i t h that of t h e preceding year.
Seattle, W a s h i n g t o n
Certified Public Accountants
February 17, 1964
11
SERVING
MANY
{
-'^^ym^.^..^-^^
The W'900 is the newest conventional model truck
built by Kenworth Motor Truck Company.
\
The design of Kenworth's new COE-100 includes many
outstanding engineering advancements.
INDUSTRI
An 80,000-pound
capacity log stacker
is being built by
Kenworth Mfg. Co.
t
This 65-ton rock
and ore mover is built by
KW-Dart Truck Co.
Peterbilt Motors Company designs this short COE
model for maximum loading space and payload.
KW-Dart's 100-ton coal hauler in
one load carries enough fuel to
heat 16 homes for a season.
This Peterbilt ready-mix cement hauler
carries more payload every trip.
America's leading railroads
look to the Renton Division as a
source of rolling stock.
Canadian Kenworth Ltd. supplies Canada's leading
logging firms with on- and off-highway trucks.
12
13
SERVING MANY INDUSTRIES
Car-Pac lading equipment, made in Renton, is used
in railroad cars to minimize cargo damage.
Built by the Renton Division, the Carco X-2 Yarder
brings production mobility to logging.
Among the products of Gearmatic Co.
Ltd. are hydraulic winches,
here installed on a fishing boat.
This giant Robbins Mechanical
Mole Tunnel Borer is being fabricated
and assembled in the Structural
Steel Division plant.
14
PROGRESS AND
EXPANSION
In North Surrey, British Columbia, the Gearmatic Co.
Ltd. was acquired in October as a subsidiary of Canadian Kenworth Ltd. This operation includes 33,000
square feet of plant and offices on eight and one-third
acres. The well-equipped factory produces transmissions
for logging yarders, log loaders and cranes; as well as
PTO-driven tractor winches and hydraulic winches with
line pulls of 6,000, 11,000 and 22,000 pounds.
1
A new building to house Canadian Kenworth's sales and
service branch in Edmonton, Alberta, was completed in
1963. The 12,760-square-foot building, located on two
and three-quarters acres of land, provides space for a
repair shop, parts department and office. The shop is
equipped for steam cleaning, painting and unit repair.
To serve and expand a growing mid-continent and eastern distribution, Kenworth Motor Truck Company built
a new $1,500,000 manufaauring plant in Kansas City,
Missouri. Now in full operation, the Midwest factory
adds 108,000 square feet of productive capacity to
Kenworth's facilities. An 18,200-foot office and cafeteria building is provided in addition. The new plant is
equipped with the most modern tools and machinery.
15
Renton Division, Renton,
Washington
Structural Steel Division, Seattle,
Kenworth
Canadian Kenworth
Washingloti
Motor Truck Company, Seattle,
Washington
Ltd., North Burnaby, British
KW-Dart
Columbia
Truck Co., Kansas City, Missouri
Peterbilt Motors Company, Newark,
California