PACCAR Quarterly Sales Down, Net Income Up

PACCAR (Nasdaq: PCAR) reported second quarter sales down versus the same period in 2015, while net income was up.

Second quarter net sales and financial services revenues were $4.41 billion, compared to $5.08 billion in the second quarter of 2015. 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 $109.6 million adjustment to the non-recurring charge established in the first quarter this year for the European Commission (EC) investigation of all European truck manufacturers.

For the first six months of 2016, PACCAR reported adjusted net income (non-GAAP) of $719.7 million ($2.05 per diluted share), excluding the $833.0 million non-recurring charge for the EC investigation. The company earned $825.6 million ($2.32 per diluted share) in the first six months of 2015.

Highlights of PACCAR’s financial results for the second quarter of 2016 include:

• Consolidated net sales and revenues of $4.41 billion.
• Adjusted net income (non-GAAP) of $371.7 million, excluding a $109.6 million favorable adjustment to the charge related to the settlement of the EC investigation.
• Net income of $481.3 million.
• Truck, Parts and Other gross margins of 15.2%.
•  PACCAR Parts pre-tax income of $133.4 million.
• Financial Services pre-tax income of $77.3 million.
• Manufacturing cash and marketable securities of $3.40 billion.
• Record quarterly cash generated from operations of $853.6 million.

Highlights of PACCAR’s financial results for the first six months of 2016 include:

• Consolidated net sales and revenues of $8.71 billion.
• Adjusted net income of $719.7 million (non-GAAP), excluding a $833.0 million non-recurring charge for the EC investigation.
• Net loss of $113.3 million
• PACCAR Parts pre-tax income of $268.0 million.
• Financial Services pre-tax income of $157.6 million.
• Cash generated from operations of $1.65 billion.

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