Peterbilt Model 520 Refuse Truck (Photo: Business Wire)
“Paccar achieved good quarterly net income in the second quarter of 2016,” said Ron Armstrong, chief executive officer. “Paccar’s financial results reflect favorable truck markets and good aftermarket parts and financial services results worldwide. I am very proud of our 23,000 employees who have delivered outstanding products and services to our customers.”
Second quarter net sales and financial services revenues for Paccar were $4.41 billion, compared to $5.08 billion in the second quarter of 2015. Paccar earned adjusted net income of $371.7 million ($1.06 per diluted share) in the second quarter of 2016.
That figure excludes a favorable $109.6 million adjustment to the non-recurring charge established in the first quarter this year for the European Commission (EC) investigation of all European truck manufacturers. Earlier this month, the EC concluded its investigation by reaching a settlement with DAF. Including the favorable adjustment to the EC charge, Paccar reported net income of $481.3 million ($1.37 per diluted share) in the second quarter of 2016. The company earned net income of $447.2 million ($1.26 per diluted share) in the second quarter last year.
For the first six months of 2016, Paccar reported adjusted net income (non-GAAP) of $719.7 million ($2.05 per diluted share), excluding the $833.0 million non-recurring charge for the EC investigation. The company earned $825.6 million ($2.32 per diluted share) in the first six months of 2015.
“Paccar’s strategic focus is to invest for growth in our core markets, while expanding our presence in emerging markets,” Armstrong said. “Paccar is earning excellent returns on its investments, achieving nearly 20 percent average annual after-tax return on equity over the last six years.
“These investments have included new Kenworth, Peterbilt and DAF vehicles, production of the fuel-efficient Paccar MX engines in North America, the DAF Brasil truck factory, and increased capacity of Paccar Parts’ distribution centers. In addition, the company expanded Paccar Financial Services internationally and introduced many industry-leading technologies and services for our dealers and customers.”
Bob Christensen, Paccar president and chief financial officer, said, “The company is investing for future growth in Paccar integrated powertrain components, advanced driver assistance and truck connectivity technologies, a new DAF cab paint facility, logistics enhancements to its manufacturing facilities, and recently opened a new Parts Distribution Center in Renton, Wash.”