Paccar achieved record quarterly net income in the second quarter of 2015, according to Ron Armstrong, chief executive officer. “Paccar’s excellent financial results reflect the benefits of increased truck sales in North America and Europe, record quarterly aftermarket parts profit and robust financial services results worldwide.”
Paccar earned $447.2 million ($1.26 per diluted share) for the second quarter of 2015, an increase of 40 percent compared to $319.2 million ($.90 per diluted share) earned in the second quarter of 2014.
Second quarter net sales and financial services revenues were $5.08 billion, an 11 percent increase compared to $4.57 billion in the second quarter of 2014. For the first six months of 2015, Paccar reported net income of $825.6 million ($2.32 per diluted share) compared to $593.1 million ($1.67 per diluted share) in 2014, an increase of 39 percent. Net sales and financial services revenues for the first six months of 2015 were $9.91 billion, 11 percent higher than the $8.95 billion last year.
“Paccar is celebrating 110 years of success in 2015. We are pleased to achieve a record quarterly profit in this milestone year,” said Armstrong. “Over the last seven years, Paccar introduced new Kenworth, Peterbilt and DAF vehicles, began production of the fuel-efficient Paccar MX engines in North America, opened the DAF Brasil truck factory, and increased the number 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. Paccar is earning excellent returns on these investments.” Armstrong added, “Paccar is well-positioned for future growth with investments in Paccar powertrain components, geographic expansion, aftermarket parts and service capabilities, and truck technologies that increase fuel-efficiency, safety and reliability.”
Kenworth and Peterbilt launched new vehicle technologies that provide customers real-time diagnostic information to enhance their vehicles’ operating performance. Kenworth TruckTech+ and Peterbilt SmartLinq diagnostic systems are in production on new Kenworth and Peterbilt Class 8 trucks specified with the Paccar MX-13 engine. DAF plans to launch its connected truck technology in the fourth quarter of this year.
Highlights of Paccar’s financial results for the second quarter of 2015 include:
- Consolidated net sales and revenues of $5.08 billion.
- Record net income of $447.2 million, an 8.8% after-tax return on revenues.
- Truck, Parts and Other gross margins of 15.1%.
- Record Paccar Parts pre-tax income of $145.7 million.
- Financial Services pre-tax income of $90.8 million.
- Manufacturing cash and marketable securities of $3.28 billion.
- Cash generated from operations of $710.9 million.
Highlights of Paccar’s financial results for the first six months of 2015 include:
- Consolidated net sales and revenues of $9.91 billion.
- Net income of $825.6 million.
- Record Paccar Parts pre-tax income of $284.6 million.
- Record Financial Services pre-tax income of $179.8 million.
- Cash generated from operations of $1.19 billion.
- Medium-term note (MTN) issuances of $1.3 billion.
- Bank credit facilities of $3.0 billion renewed.
- Record stockholders’ equity of $7.2 billion.
Class 8 industry retail sales for the U.S. and Canada in 2015 are expected to increase to a range of 270,000-290,000 vehicles compared to 250,000 units last year. “Our customers are benefiting from strong freight tonnage, good freight rates and the excellent operating efficiency of Kenworth and Peterbilt trucks,” said Dan Sobic, Paccar executive vice president. “Industry truck demand is being driven by economic growth and expansion of fleet capacity.”