PACCAR Notches Record Annual Revenues and Profits

PACCAR (Nasdaq:PCAR) has reported record annual revenues of $19.12 billion and record net income of $1.60 billion, an 8.4% after-tax return on revenues, for 2015.

The company noted that “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.

Among the 2015 highlights:

• PACCAR delivered 154,700 vehicles worldwide.
• DAF delivered its one millionth truck.
• PACCAR announced the launch of the PACCAR MX-11 engine in North America.
• PACCAR’s Mississippi engine factory produced its 100,000th PACCAR MX-13 engine.
• DAF’s Leyland truck factory produced its 400,000th truck.
• Peterbilt’s Denton manufacturing facility celebrated 35 years.
• PACCAR invested $548.2 million in capital projects and research and development.
• PACCAR Leasing celebrated 35 years and began operations in Australia
• PACCAR launched Kenworth TruckTech+ and Peterbilt SmartLinq connected truck systems.
• PACCAR has implemented over 30,000 Six Sigma projects since 1997.

Global Truck Markets:

“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.

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