Paccar reported higher revenues and net income for the first quarter of 2015 with Paccar’s truck segment results showing improvements over last year as a result of stronger industry truck sales in North America.
Ron Armstrong, Paccar’s chief executive officer, said the company also generated excellent aftermarket sales and financial services results, adding, “I am very proud of our 23,000 employees who have delivered industry leading products and services to our customers worldwide.”
Paccar earned $378.4 million ($1.06 per diluted share) for the first quarter of 2015, an increase of 38 percent compared to $273.9 million ($.77 per diluted share) in the first quarter last year. First quarter 2015 net sales and financial services revenues of $4.83 billion were 10 percent higher than the $4.38 billion reported for the first quarter of 2014.
“Paccar’s strong balance sheet and positive cash flow have enabled the company to invest over $3.1 billion in new products and services in the last five years,” Armstrong said. “We are pleased that the Kenworth T880 truck with the Paccar MX-13 engine was honored as the 2015 Commercial Truck of the Year by the American Truck Dealers. New Kenworth, Peterbilt and DAF vehicles and investments in Paccar engines and aftermarket sales and support are contributing to the company’s long-term growth.”
Highlights of Paccar’s financial results during the first quarter of 2015 include:
- Consolidated net sales and revenues of $4.83 billion.
- Net income of $378.4 million.
- Cash generated from operations of $476.2 million.
- Financial Services pretax income of $89.0 million.
- Research and development expenses of $56.2 million.
- Manufacturing cash and marketable securities of $2.71 billion.
- Shareholders’ equity of $6.73 billion.
Class 8 truck industry retail sales for the U.S. and Canada in 2015 are expected to be in a range of 260,000-290,000 vehicles, compared to the 250,000 vehicles sold in 2014.
“The truck market is strong due to the good economy, record freight demand, and expansion of industry fleet capacity. Our customers’ operating efficiency is benefiting from the aerodynamic enhancements to Kenworth and Peterbilt’s trucks and low oil prices,” said Dan Sobic, Paccar executive vice president. “The last two quarters of Class 8 truck industry orders were the strongest since 2006. Kenworth and Peterbilt’s primary truck factories are manufacturing at record levels, reflecting the strong market.”
DAF is a leader in the European tractor market and is also the overall market share leader in the United Kingdom, the Netherlands, Hungary and Poland. “Our customers recognize DAF’s excellent product quality, low operating costs and strong resale value,” said Harrie Schippers, DAF president and Paccar vice president. “The truck market in Europe is rebounding this year as industry sales in the above 16-tonne truck market are estimated to be in the range of 220,000-250,000 vehicles compared to 227,000 units last year.”
DAF produced its one millionth truck at its Eindhoven, Netherlands, assembly facility in February. The truck was a DAF XF Euro 6 powered by a Paccar MX-13 engine. DAF employees celebrated as the vehicle was presented to the Révész Group of Hungary. “I am proud of the DAF employees who over the years have made this remarkable milestone possible. DAF delivers the highest quality products and services to our customers every day,” said Harry Wolters, DAF director of operations.
Paccar Financial Services (PFS) has a portfolio of 168,000 trucks and trailers, with total assets of $11.8 billion. Paccar Leasing, a major full-service truck leasing company in North America and Europe with a fleet of 38,000 vehicles, is included in this segment. PFS’ first quarter 2015 pretax income was $89.0 million compared to $85.5 million earned in the first quarter of 2014.
First quarter 2015 revenues of $284.7 million reflect lower currency exchange rates compared to $293.7 million in 2014.