First quarter 2012 net sales and financial services revenues increased 45% to $4.78 billion from $3.28 billion reported for the first quarter of 2011.
Paccar's results reflect the benefits of increased truck sales in North America and growth in financial services assets and aftermarket revenues worldwide.
"Our customers in North America are benefiting from increased freight tonnage and higher fleet utilization rates which are driving the replacement of their aging on-highway fleets," says Mark Pigott, chairman and chief executive officer. "The vocational truck market remains subdued due to the low levels of new housing starts and general construction activity. European truck registrations improved in 2011, but ongoing Eurozone economic challenges resulted in lower industry truck orders in the first quarter of 2012."
During the first quarter of 2012, Paccar repurchased approximately 400,000 of its common shares for $15.6 million. Paccar had 356.7 million outstanding common shares as of March 31, 2012.
"Over the past nine months, Paccar has bought 9.56 million shares for a total investment of $353.2 million," says Ron Armstrong, Paccar president. "Paccar's excellent net profits and strong cash flow make the company's shares an attractive investment." The company has earned a profit for 73 consecutive years and has paid a dividend every year since 1941.
"Paccar's strong balance sheet and positive cash flow have enabled the company to increase capital investments to enhance manufacturing operating efficiency and product development programs," says Pigott. "We are pleased to launch our newest vehicles, the Kenworth T680 and the Peterbilt Model 579. These new product investments will build on Paccar's record 28.1% share of the Class 8 North American truck market achieved in 2011 and contribute to the company's long-term growth."