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PACCAR Notches Record Annual Revenues, Strong Profits

| January 30, 2018

PACCAR

PACCAR (Nasdaq: PCAR) achieved its 79th consecutive year of net income,” said Ron Armstrong, chief executive officer. “PACCAR’s financial results reflect the company’s premium-quality products and services, record heavy-duty truck market share in the U.S. and Canada, record aftermarket parts results and a strong European truck market.

He added, “PACCAR is well-positioned for long-term growth with ongoing investments in new truck models, integrated PACCAR powertrains, enhanced aerodynamic truck designs, advanced driver assistance and truck connectivity technologies, and expanded manufacturing and parts distribution facilities,” added Armstrong.

The company achieved record quarterly net sales and financial service revenues of $5.45 billion in the fourth quarter 2017 compared to $4.07 billion for the same period in 2016. PACCAR earned $589.2 million ($1.67 per diluted share) for the fourth quarter of 2017, including $173.4 million of net tax benefits resulting from recent changes to U.S. tax law.

The one-time net tax benefits include a reduction of net deferred tax liabilities of $304.0 million, partially offset by a tax on accumulated foreign earnings of $130.6 million. Excluding the one-time tax benefits, the comapny reported adjusted net income (non-GAAP)1 of $415.8 million ($1.18 per diluted share). The company earned $288.8 million ($.82 per diluted share) in the fourth quarter of 2016.

PACCAR achieved record revenues of $19.46 billion in 2017, a 14 percent increase compared to revenues of $17.03 billion in 2016. PACCAR earned $1.68 billion ($4.75 per diluted share) in 2017, including the $173.4 million one-time tax benefit. Excluding the one-time tax benefit, PACCAR earned adjusted net income (non-GAAP)1 of $1.50 billion ($4.26 per diluted share). The company reported annual net income of $521.7 million ($1.48 per diluted share) in 2016, including an $833.0 million non-recurring charge for a European Commission (EC) settlement. Excluding the charge, PACCAR reported adjusted net income (non-GAAP)1 of $1.35 billion ($3.85 per diluted share) in 2016.

United States Tax Reform Benefit

“The enacted tax legislation will generate positive cash flow for PACCAR as well as benefit the transportation industry in the United States,” said Harrie Schippers, president and chief financial officer. “The revised corporate tax rate, comparable to other leading OECD countries’ tax rates, and accelerated machinery and equipment depreciation, will likely stimulate increased capital investment in the United States.” The comapny estimates that its 2018 effective global tax rate will be 23 to 25 percent, compared to approximately 31 percent prior to the new tax law.

Business Highlights – 2017

  • Delivered 158,900 vehicles worldwide, including a record 29,700 medium-duty trucks.
  • Invested $697.8 million in capital projects and research and development.
  • DAF CF and XF trucks earned the prestigious “International Truck of the Year 2018” award.
  • Kenworth and Peterbilt achieved record Class 8 retail market share of 30.7 percent in the U.S. and Canada (28.5 percent in 2016).
  • Kenworth and Peterbilt launched the PACCAR front and rear axles and the PACCAR automated transmission in North America.
  • DAF Brasil earned the “Truck Brand of the Year” for the second consecutive year by the Brasilian national dealer association, Fenabrave.
  • The PACCAR Engine Factory in Columbus, Mississippi earned the “2017 Quality Plant of the Year” award from Quality Magazine.
  • PACCAR Parts opened new Parts Distribution Centers in Brisbane, Australia and Panama City, Panama.
  • The PACCAR Innovation Center opened in Silicon Valley, California.
  • PACCAR was honored by InformationWeek magazine for excellence in data analytics.

Category: General Update, News

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