Things are going well at Paccar.
The company announced Tuesday record quarterly revenues for its second quarter of 2018, as well as a net income of $559.6 million ($1.59 per diluted share) in the second quarter, 50 percent higher than the $373.0 million ($1.06 per diluted share) earned in the same period last year. Additionally, second quarter net sales and financial services revenues were a record $5.81 billion, 23 percent higher than the $4.70 billion achieved in the second quarter of 2017.
“Paccar achieved record quarterly revenues and excellent net income in the second quarter of 2018,” says CEO Ron Armstrong. “Paccar’s financial results reflect strong global truck demand, increasing Paccar truck production and market share, and robust global aftermarket parts sales.
“I am very proud of our 27,000 employees who have delivered outstanding products and services to our customers. The positive economic and freight growth in North America and Europe are good indicators that 2019 will be another strong truck market.”
“Paccar’s 9.6 percent after-tax return on revenues is an excellent achievement,” adds Harrie Schippers, Paccar president and CFO. “The dramatic increase in net income reinforces Paccar’s financial leadership and strongly positions the company as it invests in new vehicle platforms, technology initiatives such as connected truck, autonomous and alternative fuel systems and developing customer service programs.”
Across the business, Paccar reports a record first-half net income of $1.07 billion ($3.04 per diluted share) in 2018 compared to net income of $683.3 million ($1.94 per diluted share) in the first six months of last year. Net sales and financial services revenues for the first six months of 2018 were $11.46 billion versus $8.94 billion last year.
Other second-quarter records included: the aforementioned consolidated net sales and revenues; Paccar Parts revenues of $968.0 million; Paccar Parts pre-tax income of $194.5 million; and stockholders’ equity of $8.78 billion. The company also states its three truck brands shipped a corporate best 46,400 trucks in the second quarter, 18 percent higher than the same period last year.
“Truck deliveries increased in North America, Europe, Australia and Brazil in the second quarter, reflecting strong customer demand for the industry-leading Kenworth, Peterbilt and DAF trucks,” says Darrin Siver, Paccar senior vice president.