Paccar sales dip, income up

Pete Model348Paccar reported a second quarter net sales and financial services revenues of $4.41 billion Tuesday, compared to $5.08 billion in the second quarter of 2015. The company reported net income of $481.3 million in the quarter versus $447.2 million in the second quarter last year.

“Paccar’s strategic focus is to invest for growth in our core markets, while expanding our presence in emerging markets,” says Bob Christensen, Paccar president and chief financial officer. “Paccar is earning excellent returns on its investments, achieving nearly 20 percent average annual after-tax return on equity over the last six years.”

For the first six months of 2016, Paccar reported adjusted net income of $719.7 million, excluding the $833.0 million non-recurring charge for a European Commission investigation in which the company was heavily fined. Including the non-recurring charge, Paccar reported a net loss of $113.3 million in the first six months of 2016.

PACCAR Executive Vice President Gary Moore says Class 8 truck industry retail sales for the U.S. and Canada this year are expected to be in a range of 220,000-240,000 vehicles, adding Peterbilt and Kenworth are benefiting from the third best U.S. and Canada Class 8 truck market in the last ten years, and have achieved 27 percent market share year-to-date this year.

“The truck market reflects the good economy and high freight tonnage levels,” he says. “Our customers are benefiting from the excellent operating efficiency of Peterbilt and Kenworth trucks.”

Paccar Parts generated quarterly pre-tax profit of $133.4 million in the second quarter of 2016, compared to $145.7 million achieved in the second quarter of 2015, and a pre-tax profit of $268.0 million in the first six months of 2016, compared to $284.6 million in the first six months of 2015.