Related: Class 8 Truck Orders Hit 3-Year High
Earnings Watch: Paccar Doubles Quarterly, Annual Income
Truck and engine maker Paccar Inc. on Tuesday reported big gains in both profits and revenue for the final quarter of 2017 as well as for all of last year.


Paccar exhibited for the first time at the CES consumer electronics show in early 2018.Photo: Peterbilt
Truck and engine maker Paccar Inc. on Tuesday reported big gains in both profits and revenue for the final quarter of 2017 as well as for all of last year.
The parent to truck names Kenworth, Peterbilt, and DAF said it achieved record quarterly net sales and financial service revenues of $5.45 billion in the fourth quarter of 2017, compared to $4.07 billion for the same period in 2016.
Net income totaled $589.2 million, or $1.67 per share, for the fourth quarter of 2017, including $173.4 million of net tax benefits resulting from recent changes to U.S. tax laws. This compares to net income of $288.8 million a year earlier.
The one-time net tax benefits include a reduction of net deferred tax liabilities of $304 million, partially offset by a tax on accumulated foreign earnings of $130.6 million, according to the company.
The Washington-state based company also reported record revenues of $19.46 billion in 2017, a 14% increase compared to 2016.
Net income for last year was $1.68 billion, or $4.75 per share, including the $173.4 million one-time tax benefit. Excluding this benefit, Paccar had adjusted net income of $1.5 billion. The company reported 2016 annual net income of $521.7 million, or $1.48 per share, that included an $833 million non-recurring charge for a European Commission settlement over claims of price fixing.
“The enacted tax legislation will generate positive cash flow for Paccar as well as benefit the transportation industry in the United States,” said Harrie Schippers, president and chief financial officer.
He said this new tax rate will likely stimulate increased capital investment in the United States.
Class 8 truck industry retail sales in the U.S. and Canada were 218,000 units in 2017, compared to 216,000 vehicles sold in 2016, according to Paccar. Kenworth and Peterbilt achieved record Class 8 retail market share of 30.7% in the U.S. and Canada in 2017, compared to 28.5% in 2016.
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