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.