Paccar, parent of Kenworth and Peterbilt, has announced that for the second quarter of 2017, it achieved net sales and financial services revenues of $4.70 billion-- compared to $4.41 billion in the same period a year ago.
David Cullen・[Former] Business/Washington Contributing Editor
Truck and engine maker Paccar (Nasdaq:PCAR), parent of Kenworth and Peterbilt, announced on July 25 that for the second quarter of 2017, it achieved net sales and financial services revenues of $4.70 billion compared to $4.41 billion in the same period a year ago.
The company said it earned net income of $373.0 million ($1.06 per diluted share) in Q2 of this year compared to net income of $481.3 million ($1.37 per diluted share) in the same period of 2016.
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The OEM largely credited this positive performance to increased truck deliveries and record aftermarket parts revenues in the global markets it serves.
Paccar CEO Ron Armstrong said in a staement that the company “achieved strong quarterly revenues and net income in the second quarter,” with those results reflecting “increasing North American truck production and market share, strong European truck markets, and higher global aftermarket parts sales.”
According to Paccar, other highlights of its Q2 earnings release include:
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Truck, Parts and Other gross margins of 14.6%
Record Paccar Parts revenues of $823.1 million
Record Paccar Parts pre-tax income of $152.4 million
Financial Services pre-tax income of $63.0 million
Manufacturing cash and marketable securities of $3.00 billion
Quarterly cash generated from operations of $574.7 million
Record stockholders’ equity of $7.50 billion
Paccar also stated that U.S. and Canada Class 8 truck industry orders increased 44% in the first six months of 2017 compared to the same period last year. Kenworth and Peterbilt achieved 31.7% share of U.S. and Canada Class 8 truck orders and 29.6% share of U.S. and Canada Class 8 truck retail sales in the first half of this year.
“Kenworth and Peterbilt’s medium- and heavy-duty truck deliveries increased in the second quarter of 2017 by 25% compared to the first quarter of this year,” said Gary Moore, Paccar executive vice president. “Class 8 truck industry retail sales for the U.S. and Canada are expected to be in a range of 200,000 to 220,000 vehicles in 2017. The truck market reflects the good economy and high levels of freight tonnage.”
Preston Feight, Paccar vice president and president of its Holland-based DAF truck operation, noted that DAF’s “above 16-ton truck orders are 10% higher in the first six months of 2017 compared to the same period last year.” He added that the company has raised its European above 16-ton market estimate to a range between 290,000 and 310,000 vehicles for this year “due to continued economic and freight growth.”
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