Paccar says improved margins, excellent production efficiency, and strong truck demand in Europe and North America contributed to record sales and earnings in 1999.
The company's sales for the year were $8.6 billion, up 14% from 1998. Net income was $583.6 million, up 40% from 1998.
Fourth quarter sales were $2.2 billion, up 5% from fourth quarter 1999. Net income was $179.9 million, up 57% from a year earlier.
"The capital investments made during the last decade, such as production capacity enhancements, many new product introductions and the implementation of a comprehensive information technology and e-commerce framework throughout the company, have generated outstanding results," said Paccar chairman and CEO Mark Pigott. "By any measure, 1999 was a banner year."
The company builds Kenworth and Peterbilt in the U.S., and DAF and Foden trucks in Europe. In all it delivered a record 108,000 trucks in 1999 versus 93,800 in 1998.
"North American industry truck orders have declined in recent months," said Pigott. "Even if the widely forecasted 10-15% reduction in new truck orders and registrations occurs this year, it should still be a good year for the industry. The European truck market remains strong and DAF is increasing its production to meet growing demand for its quality products."
Some Paccar milestones in 1999:
- Impementation of a company-wide Six Sigma program to improve business processes, reduce costs and improve quality. The company said it provided over $10 million in operating profit in 1999 and should increase its contribution in 2000.
- The opening of a $90 million medium-duty truck plant in St. Therese, Canada. Last year the company delivered over 5,000 medium duty trucks in North America -- it's best medium duty truck year ever -- plus over 8,000 medium duty trucks in Europe.
- Introduction of the Peterbilt Model 270 and Kenworth K300, both Class 5-7 COEs based on the successful DAF 45/55 series.
- Formation of two new divisions, Paccar.com and e-Paccar which will direct investments in customer services, including on-line financing and insurance programs, and develop technology in areas such as XML data retrieval, wireless solutions and driver internet productivity enhancements.
- Delivery of a record $1 billion of aftermarket parts worldwide. The 13 Paccar Parts distribution centers shipped 8.5 million line items and achieved 99.7% accuracy.
- DAF was the first manufacturer in Europe to develop and install its own diesel engines that meet stringent Euro 3 emissions two years before the legislation is effective.