Paccar reported record revenues for 2012 and its 74th consecutive year of net profit. Paccar’s annual revenues of $17.05 billion were the highest in company history and the $1.11 billion of net income was the fourth best in its history.
Revenues, Net Income and Dividends
Paccar achieved record revenues of $17.05 billion in 2012 compared to revenues of $16.36 billion in 2011. It reported net income of $1.11 billion in 2012 compared to $1.04 billion earned last year. Paccar’s 2012 earnings per diluted share of $3.12 increased by 9% versus 2011 EPS of $2.86.
Fourth quarter net sales and financial service revenues were $3.99 billion compared to $4.85 billion for the comparable period in 2011. Paccar earned $253.5 million ($.72 per diluted share) for the fourth quarter of 2012 compared to $327.7 million ($.91 per diluted share) in the fourth quarter of 2011.
Paccar declared cash dividends of $1.58 per share during 2012, including a fourth quarter special dividend of $.80 per share. Total dividends declared in 2012 increased by 22% compared to 2011. Paccar has paid a dividend every year since 1941. Paccar’s total shareholder return was 25.1% during 2012.
Stock Repurchase Update
During 2012, Paccar repurchased 4.19 million of its common shares for $162.1 million. Under the current board of directors' resolution authorizing $300 million of stock repurchases, Paccar has repurchased 4.99 million shares for $192.0 million. Paccar’s shareholder return averaged 16.2% per year in the last ten years, compared to the S&P 500 Index average annual return of 7.1% for the same period.
Increased Capital Investments
In 2012, capital investments of $511 million and research and development expenses of $279.3 million were invested in global expansion initiatives, to enhance manufacturing efficiency, and accelerate new Paccar product development. Paccar’s capital investments in 2013 are focused on the completion of the DAF factory in Brasil.