Paccar reported good revenues and net income for the third quarter of 2016, according to Ron Armstrong, chief executive officer. “Paccar’s third quarter results reflect strong truck markets in Europe, increased heavy-duty truck market share in North America and Europe, and good aftermarket parts and financial services results worldwide,” Armstrong said. “I am very proud of our 23,000 employees who have delivered industry-leading products and services to our customers.”
Paccar earned $346.2 million ($.98 per diluted share) for the third quarter of 2016 compared to $431.2 million ($1.21 per diluted share) earned in the third quarter of 2015. Third quarter net sales and financial services revenues were $4.25 billion this year compared to $4.85 billion for the same period last year.
For the first nine months of 2016, Paccar reported adjusted net income (non-GAAP) 1 of $1.07 billion ($3.03 per diluted share), excluding an $833.0 million non-tax-deductible, non-recurring charge for a European Commission (EC) settlement.
The company earned $1.26 billion ($3.53 per diluted share) in the first nine months of 2015. Paccar reported net income of $232.9 million ($.66 per diluted share) in the first nine months of 2016, including the non-recurring charge. Net sales and financial services revenues for the first nine months of 2016 were $12.96 billion compared to $14.76 billion last year.
Paccar acquired DAF in 1996 and has increased its above 16-tonne market share in Europe from nine percent in 1996 to 15.6 percent this year. DAF is the overall above 16-tonne market share leader in the U.K., the Netherlands, Poland and Hungary. DAF manufactures trucks in Europe, South America and Asia, and sells trucks, engines and aftermarket parts in more than 100 countries worldwide.
Kenworth and Peterbilt have benefited from DAF’s leadership in the design and production of commercial vehicle diesel engines. The success of Paccar’s MX engines in North America, produced in Paccar’s Mississippi engine factory, has contributed to Kenworth and Peterbilt’s U.S. and Canada Class 8 market share growth to a quarterly record of 31 percent.
Highlights of Paccar’s financial results for the third quarter of 2016 include:
- Consolidated sales and revenues of $4.25 billion
- Net income of $346.2 million
- Paccar Parts quarterly pre-tax income of $138.3 million
- Financial Services quarterly pre-tax income of $71.0 million
- Manufacturing cash and marketable securities of $2.80 billion.
Highlights of Paccar’s financial results for the first nine months of 2016 include:
- Consolidated sales and revenues of $12.96 billion
- Adjusted net income of $1.07 billion (non-GAAP), excluding an $833.0 million non-tax-deductible, non-recurring charge for the EC settlement
- Net income of $232.9 million
- Paccar Parts pre-tax income of $406.3 million
- Financial Services pre-tax income of $228.6 million
- Cash generated from operations of $1.49 billion.
- Combined capital and research and development expenditures of $445.4 million
- Medium-term note issuances of $1.84 billion
- Bank credit facilities of $3.0 billion renewed.