Paccar reported strong revenues and net income for the third quarter of 2015, according to Ron Armstrong, chief executive officer, reflecting the benefits of increased truck sales in North America and Europe, as well as excellent aftermarket parts and financial services results worldwide.
“This was the second best quarter in Paccar’s 110-year history,” Armstrong said, adding, “I am very proud of our 24,500 employees who have delivered outstanding results to our shareholders and customers.”
Paccar earned $431.2 million ($1.21 per diluted share) for the third quarter of 2015, an increase of 16 percent compared to $371.4 million ($1.04 per diluted share) earned in the third quarter of 2014.
Third quarter net sales and financial services revenues were $4.85 billion this year compared to $4.93 billion for the same period last year. Paccar achieved an 8.9 percent after-tax return on revenues in the third quarter versus a 7.5 percent after-tax return on revenues a year ago.
For the first nine months of 2015, Paccar reported a 31 percent increase in net income to $1.26 billion ($3.53 per diluted share) compared to $964.5 million ($2.71 per diluted share) in 2014. Net sales and financial services revenues for the first nine months of 2015 were $14.76 billion compared to $13.88 billion last year.
“Our DAF customers in Europe are benefiting from improved economic growth, low interest rates, strong freight activity and the excellent operating efficiency of the DAF Euro 6 range of trucks,” Armstrong said. “DAF increased production at its Eindhoven truck assembly factory to record rates in the fourth quarter to meet customer demand for our industry-leading DAF vehicles.”
Highlights of Paccar’s financial results for the third quarter of 2015 include:
- Consolidated sales and revenues of $4.85 billion.
- Net income of $431.2 million, an 8.9 percent after-tax return on revenues.
- Paccar Parts quarterly pre-tax income of $145.4 million.
- Financial Services quarterly pre-tax income of $92.9 million.
- Cash generated from operations of $664.1 million.
- Manufacturing cash and marketable securities of $3.45 billion.
- Medium-term note issuances of $630.2 million.
Financial Highlights – Nine Months 2015
Highlights of Paccar’s financial results for the first nine months of 2015 include:
- Consolidated sales and revenues of $14.76 billion.
- Net income of $1.26 billion.
- Paccar Parts revenues of $2.31 billion and record pre-tax income of $430.0 million.
- Financial Services pre-tax income of $272.7 million.
- Cash generated from operations of $1.85 billion.
- Medium-term note issuances of $1.94 billion.
“The U.S. and Canada truck industry Class 8 retail sales year-to-date are 18 percent higher compared to the same period last year. Kenworth and Peterbilt customers are benefiting from good economic growth, strong freight tonnage and lower fuel prices,” said Dan Sobic, Paccar executive vice president.
“Next year should be another strong year for truck sales.” Class 8 industry retail sales for the U.S. and Canada in 2015 are estimated to be in the range of 275,000-285,000 vehicles. Estimates for U.S. and Canada truck industry Class 8 retail sales in 2016 are in the range of 240,000-270,000 units.
Kenworth and Peterbilt Predictive Cruise Control is in production for Kenworth T680 and T880 and Peterbilt Model 579 and Model 567 trucks, specified with the Paccar MX-13 engine. “This innovative technology integrates cruise control with global positioning data to predict road contours, enabling trucks equipped with the Paccar MX-13 engine and integrated transmission to achieve optimal fuel economy,” said Darrin Siver, Paccar vice president and Peterbilt general manager.
Kenworth and Peterbilt have developed additional technologies to enhance driver performance and vehicle profitability. Driver Performance Assistant and Driver Shift Aid are standard equipment on Kenworth T680 and T880 and Peterbilt Model 579 and Model 567 trucks, powered by the Paccar MX-13 engine.
Driver Performance Assistant provides drivers with real-time feedback, which can improve vehicle performance and fuel economy. Driver Shift Aid provides drivers, in vehicles equipped with manual transmissions, a visual cue to shift at the optimal RPM and engine torque to maximize fuel economy.