Paccar reported its 2019 annual revenues and profits Tuesday, announcing record revenue and extending its impressive run of consecutive net income to 81 years.
“Paccar’s vibrant results reflect the company’s premium-quality products and services, strong global truck markets, record truck production and record aftermarket parts sales. I am very proud of our employees who have delivered outstanding products and services to our customers,” says CEO Preston Feight.
Paccar achieved quarterly revenues of $6.12 billion in the fourth quarter 2019, compared to the $6.28 billion reported in the same period in 2018. The company earned $531.3 million ($1.53 per diluted share) in the fourth quarter of 2019. Paccar earned $578.1 million ($1.65 per diluted share) in the fourth quarter of 2018. Paccar achieved record revenues of $25.60 billion in 2019, a 9 percent increase compared to revenues of $23.50 billion in 2018. The company earned a record $2.39 billion ($6.87 per diluted share) in 2019, 9 percent higher than the $2.20 billion ($6.24 per diluted share) earned in 2018.
The company also delivered a total shareholder return of 45 percent compared to the S&P 500 Index total return of 31 percent in 2019.
Among the company’s 2019 highlights was a record 198,000 truck deliveries worldwide, U.S. and Canada Class 8 market share of 30 percent with Kenworth and Peterbilt and the Kenworth Chillicothe and Peterbilt Denton plants each earned a prestigious 2019 Manufacturing Leadership Award from the National Association of Manufacturers. Peterbilt, Kenworth and Paccar Parts also were each recognized as top workplaces for women by Women in Trucking and Paccar earned, for the second consecutive year, an elite “A” rating from CDP for its environmental practices, placing the company in the top 2 percent of over 8,000 reporting companies worldwide.
Two major highlights of Paccar’s financial results during 2019 were record consolidated net sales and revenues of $25.60 billion and record net income of $2.39 billion, 9.3 percent after-tax return on revenues.
Paccar’s aftermarket parts business achieved fourth quarter pre-tax income of $205.2 million, 6 percent higher than the $193.8 million earned in the fourth quarter of 2018. Fourth quarter 2019 revenues were $993.9 million compared to $970.9 million reported in the fourth quarter of 2018. Paccar Parts achieved record annual pre-tax income of $830.8 million, 8 percent higher than the $768.6 million earned in 2018. Annual revenues were a record $4.02 billion compared to $3.84 billion in 2018.
“Paccar Parts’ revenue and profit growth has been driven by investments in distribution and technology, initiatives such as TRP all-makes parts, TRP stores and a growing population of integrated and connected Paccar vehicles,” says David Danforth, Paccar vice president and Paccar Parts general manager.
