PACCAR Announces Good Quarterly Revenues and Earnings
Increases Truck Market Share in Major Markets
25 October 2016
“PACCAR reported good revenues and net income for the third quarter of 2016,” said 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. 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) 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 Celebrates 20 Years of DAF Trucks
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 over 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.
Financial Highlights – Third Quarter 2016
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.
Financial Highlights – Nine Months 2016
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.
Global Truck Markets
“Customers recognize DAF’s product quality leadership, low operating costs and excellent resale value,” said Preston Feight, DAF president and PACCAR vice president. “DAF achieved year-to-date European above 16-tonne truck market share of 15.6 percent compared to 14.6 percent in the same period last year.” It is estimated that the European truck industry sales in the above 16-tonne market will be in the range of 290,000-300,000 units this year, one of the best markets in history, and are projected to be in the range of 260,000-290,000 units in 2017.
Class 8 truck industry retail sales for the U.S. and Canada are expected to be in a range of 215,000-225,000 vehicles in 2016. Class 8 truck industry retail sales for the U.S. and Canada are estimated to be in the range of 200,000-230,000 vehicles in 2017. Peterbilt and Kenworth’s record third quarter U.S. and Canada Class 8 retail sales market share of 31 percent increased their year-to-date market share to 27.9 percent. “Our customers are benefiting from the excellent operating efficiency of Peterbilt and Kenworth trucks,” said Gary Moore, PACCAR executive vice president.
PACCAR Launches Proprietary Axle in North America
PACCAR has launched a new proprietary tandem axle in North America that is the industry’s lightest and most efficient axle in its class. The axle will be available to customers in January 2017. “PACCAR’s axle reduces vehicle weight by up to 150 lbs. and improves fuel economy,” noted Landon Sproull, PACCAR vice president. A unique design simplifies power flow in the axle for enhanced efficiency, and innovative fluid distribution technology reduces weight and improves fuel economy. The axle is rated at 40,000 lbs., supporting a gross combination weight of 80,000 lbs.