Paccar on Tuesday reported a net income of $545.3 million ($1.55 per diluted share) in the third quarter of 2018, 35 percent higher than the net income of $402.7 million ($1.14 per diluted share) earned in the same period last year.
Paccar adds its third quarter net sales and financial services revenues were $5.76 billion, 14 percent higher than the $5.06 billion reported in the third quarter of 2017. Third quarter results benefited from one-time tax items, offset by lower truck margins due to the normal DAF factory summer shutdown and costs associated with supplier parts shortages in North America, the company says.
“Paccar reported excellent revenues and net income for the third quarter of 2018,” says CEO Ron Armstrong. “Paccar’s third quarter results reflect strong global truck demand, record truck production, record market share in Europe, and excellent global aftermarket parts results. I am very proud of our 28,000 employees who have delivered industry-leading products and services to our customers.”
The company’s net sales and financial services revenues for the first nine months of 2018 were $17.22 billion compared to $14.00 billion last year. Paccar also earned $1.62 billion ($4.59 per diluted share) for the first nine months of 2018.
Paccar credits a strong local and global truck market for the company’s productive quarter. Paccar states Class 8 truck industry retail sales for the U.S. and Canada expected to be in a range of 280,000-290,000 vehicles in 2018, 31 percent higher than in 2017. The company adds Class 8 truck industry retail sales in 2019 for the U.S. and Canada are estimated to be in a range of 280,000-310,000 vehicles, which would be one of the strongest markets in history.
“Customers are benefiting from the strong U.S. economy and the excellent operating efficiency of Peterbilt and Kenworth trucks,” says Gary Moore, Paccar executive vice president.
Armstrong adds, “Customer demand for Kenworth, Peterbilt and DAF trucks is at record levels. Kenworth and Peterbilt have received more than double the number of U.S. and Canada Class 8 orders in the first nine months of this year, compared to the same period last year. Paccar truck backlogs are very strong, with Kenworth and Peterbilt production scheduled well into next year.”
In the parts space, Paccar Parts states it achieved pre-tax profit of $188.5 million in the third quarter of 2018, 24 percent greater than the $151.8 million earned in the third quarter of 2017. Third quarter 2018 revenues were $960.1 million, 14 percent higher than the $840.0 million achieved in the third quarter last year. The company adds Paccar Parts achieved pre-tax profit of $574.8 million in the first nine months of 2018, compared to $453.8 million in the first nine months of 2017. Paccar Parts’ nine-month revenues were $2.87 billion, compared to $2.45 billion for the same period last year.
“Paccar Parts’ outstanding sales and profit growth have been driven by investments in new parts distribution centers (PDCs), innovative programs such as national fleet services and Paccar Genuine and TRP all-makes parts, and a larger Paccar MX engine parc,” says David Danforth, Paccar Parts general manager and Paccar vice president.