PACCAR Notches Strong Quarterly Revenues and Profits

PACCAR (Nasdaq:PCAR) has achieved strong quarterly revenues and net income in the second quarter of 2017,” said Ron Armstrong, chief executive officer.

“PACCAR’s financial results reflect increasing North American truck production and market share, strong European truck markets and higher global aftermarket parts sales.” The company has 24,500 employees.

Second quarter net sales and financial services revenues were $4.70 billion, compared to $4.41 billion in the second quarter of 2016. PACCAR earned net income of $373.0 million ($1.06 per diluted share) in the second quarter of this year compared to net income of $481.3 million ($1.37 per diluted share) in the same period last year. PACCAR earned adjusted net income (non-GAAP)1 of $371.7 million ($1.06 per diluted share) in the second quarter of 2016, excluding a favorable, non-recurring $109.6 million adjustment related to the European Commission (EC) settlement.

PACCAR reported net income of $683.3 million ($1.94 per diluted share) for the first six months of 2017. The company reported a net loss of $113.3 million ($.32 per diluted share) in the first six months of last year. PACCAR reported adjusted net income (non-GAAP) of $719.7 million ($2.05 per diluted share) in the first six months of 2016, excluding an $833.0 million non-recurring charge for the EC settlement. Net sales and financial services revenues for the first six months of 2017 were $8.94 billion compared to $8.71 billion last year.

Armstrong added, “PACCAR is a technology leader in the commercial vehicle industry and is investing in the next generation of automotive technologies. PACCAR’s investments include autonomous driving and truck platooning, truck connectivity, augmented reality (AR), and an integrated software platform. The company continues to introduce industry-leading technologies in our aftermarket parts and financial services businesses utilizing big data analytics for our dealers and customers.”

Harrie Schippers, PACCAR executive vice president and chief financial officer, said, “PACCAR has added 1,200 new jobs in the U.S. this year to meet increased customer demand, complemented by over $125 million of capital and research and development.”

Highlights of PACCAR’s financial results for the second quarter of 2017 include:

• Consolidated net sales and revenues of $4.70 billion.
• Net income of $373.0 million.
• Truck, Parts and Other gross margins of 14.6 percent.
• Record PACCAR Parts revenues of $823.1 million.
• Record PACCAR Parts pre-tax income of $152.4 million.
• Financial Services pre-tax income of $63.0 million.
• Manufacturing cash and marketable securities of $3.00 billion.
• Quarterly cash generated from operations of $574.7 million.
• Record stockholders’ equity of $7.50 billion.

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