PACCAR Reports Record Annual Revenues

PACCAR (Nasdaq:PCAR) has reported record annual revenues of $18.99 billion and net income of $1.36 billion for 2014.

PACCAR achieved the second best annual net profit in the company’s history and the 76th consecutive year of net income,” said Ron Armstrong, chief executive officer. “PACCAR’s financial results reflect the company’s premium-quality products and services, increased North American truck deliveries, and growth in aftermarket parts revenues and PACCAR Financial Services assets.”

“Industry sales above 16-tonnes in Europe were 227,000 units in 2014 and DAF’s market share was 13.8 percent. It is estimated that European truck industry sales in the above 16-tonne market in 2015 will be in a range of 200,000-240,000 vehicles.”

“PACCAR’s excellent profits and strong cash flow have enabled the company to invest in new innovative premium vehicles, expand its aftermarket distribution centers and enhance its production facilities,” added Armstrong. “PACCAR’s North American customers are benefiting from good economic growth, record freight tonnage, lower fuel prices and the excellent operating efficiency of Kenworth’s and Peterbilt’s industry-leading trucks. U.S. and Canada Class 8 truck industry retail sales in 2014 of 250,000 vehicles were the highest since 2006.”

PACCAR achieved record revenues of $18.99 billion in 2014 compared to revenues of $17.12 billion in 2013. PACCAR reported net income of $1.36 billion ($3.82 per diluted share) in 2014, an increase of 16 percent compared to $1.17 billion ($3.30 per diluted share) earned last year. Fourth quarter 2014 net sales and financial service revenues were a quarterly record $5.12 billion, an 11 percent increase, compared to $4.60 billion for the same period in 2013. PACCAR earned $394.3 million ($1.11 per diluted share) for the fourth quarter of 2014, an 18 percent increase, compared to $334.2 million ($.94 per diluted share) in the fourth quarter of 2013. Shareholders’ equity was $6.75 billion at December 31, 2014.

Business Highlights – 2014

• PACCAR delivered 142,900 vehicles worldwide.
• Peterbilt celebrated its 75-year anniversary and Kenworth delivered its one millionth truck.
• DAF’s cab factory in Westerlo, Belgium, produced its one millionth DAF cab.
• PACCAR Parts opened a new Parts Distribution Center (PDC) in Montreal, Canada, and celebrated the 20-year anniversary of the TRP all-makes aftermarket parts program.
• PACCAR’s engine factory in Columbus, Mississippi, and Peterbilt’s truck factory in Denton, Texas, earned Frost & Sullivan’s Manufacturing Leadership Awards.
• Kenworth’s T880 truck, equipped with the PACCAR MX-13 engine, earned “2015 Truck of the Year” from the American Truck Dealers. DAF was awarded “Manufacturer of the Year” in the United Kingdom by GreenFleet magazine.
• PACCAR invested $438.7 million in capital projects and research and development.
• PACCAR has implemented over 26,000 Six Sigma projects since 1997.

Category: Capital Markets, Trucks