Paccar reported record annual revenues of $19.12 billion and record net income of $1.60 billion — an 8.4 percent after-tax return on revenues for 2015.
Paccar achieved its 77th consecutive year of net income, according to Ron Armstrong, chief executive officer. “Paccar’s financial results reflect the company’s premium-quality products and services and increased North American and European truck deliveries, complemented by excellent aftermarket parts and Paccar Financial Services results.
“We are pleased to achieve record annual revenues and record net income in our milestone 110th year,” Armstrong said. “I am very proud of our 23,000 employees who have delivered outstanding performance to our shareholders and customers.”
Paccar’s North American and European customers are benefiting from good economic growth, strong freight tonnage, lower fuel prices and the superior operating efficiency of Kenworth’s, Peterbilt’s and DAF’s industry-leading trucks. U.S. and Canada Class 8 truck industry retail sales in 2015 of 278,000 vehicles were the highest since 2006. Europe above 16-tonne registrations in 2015 of 269,000 vehicles were the highest since 2008.
Paccar’s excellent profits and strong cash flow have enabled the company to invest in future growth in its core markets while expanding its presence in emerging markets.
“Paccar is well-positioned for long-term growth with investments in new state-of-the-art DAF, Kenworth and Peterbilt vehicles, innovative Paccar engines, geographic expansion, aftermarket parts and service capabilities, factory enhancements, and truck technologies that increase fuel-efficiency and reliability,” added Armstrong. “Stockholders’ equity was a year-end record $6.94 billion at December 31, 2015.”
Paccar achieved record revenues of $19.12 billion in 2015 compared to revenues of $18.99 billion in 2014. Paccar reported record net income of $1.60 billion ($4.51 per diluted share) in 2015, an increase of 18 percent compared to $1.36 billion ($3.82 per diluted share) earned last year. Fourth quarter 2015 net sales and financial service revenues were $4.36 billion compared to $5.12 billion for the same period in 2014. Paccar earned $347.2 million ($.98 per diluted share) for the fourth quarter of 2015 compared to $394.3 million ($1.11 per diluted share) in the fourth quarter of 2014, which reflects lower truck deliveries in North America, partially offset by increased deliveries in Europe.
“Class 8 truck industry retail sales in the U.S. and Canada were a robust 278,000 units in 2015, compared to the 250,000 vehicles sold in 2014,” said Gary Moore, Paccar executive vice president.
“Truck demand is being driven by good economic growth, strong freight tonnage and lower fuel prices. In 2015, Paccar achieved a Class 8 retail market share in the U.S. and Canada of 27.4 percent as customers benefited from Kenworth and Peterbilt vehicles’ excellent fuel efficiency and outstanding performance.
“Estimates for U.S. and Canada Class 8 truck industry retail sales are for another good year in 2016 with sales in the range of 230,000-260,000 units, driven by ongoing economic growth and customers’ focus on achieving enhanced operating efficiency with new Peterbilt and Kenworth trucks,” added Moore.