Paccar Inc., Bellevue, Wash., reported excellent revenues and net income for the third quarter and first nine months of 2002 compared with the same periods a year ago,
according to Mark C. Pigott, chairman and chief executive officer.
Third quarter net sales and financial services revenues were $2 billion, 33% higher than the $1.5 billion reported for the comparable period in 2001. Net income of $128.9 million ($1.11 per diluted share) increased more than 200% from the $39.4 million ($.34 per diluted share) earned in the third quarter of 2001.
Net sales and financial services revenues for the first nine months of 2002 were $5.3 billion compared to $4.6 billion last year. For the first nine months of 2002, Paccar reported net income of $249.8 million ($2.15 per diluted share) compared to $123.2 million ($1.07 per diluted share) in 2001.
"In a turbulent truck market, Paccar posted strong results due to its industry-leading quality products, comprehensive aftermarket programs and ongoing cost control measures," said Pigott. "Paccar shareholder return has exceeded the Standard & Poor's 500 index for the previous one-, five-, and 10-year time periods," he added. "Paccar's global presence, with over 40% of its revenues generated outside of the U.S., provides beneficial market diversity. Kenworth, Peterbilt and DAF have increased their share in their respective markets in North America, Australia and Europe. The continuity of management leadership for 97 years has resulted in a consistent approach towards achieving company objectives of quality, profitability and growth."
Recent Paccar announcements and actions include the following:
-- Paccar invested $100 million in 2002 to fund its pension plan obligations.
-- Paccar will begin expensing its stock options, effective January 1, 2003.
-- The environmental awards earned at its Renton, Chillicothe and Mexican facilities illustrate Paccar's proactive community leadership.
-- Paccar began installing production-ready compliant engines, which meet the new emission regulations.
-- ISO 9001: 2000 quality certification has been earned by a number of Paccar's divisions.
"Last month Paccar Inc.'s board of directors approved the purchase from time to time in the open market of up to three million shares of its outstanding common stock, recognizing that the company's stock is an excellent investment," Pigott said.
"Paccar's third quarter 2002 North American production rates increased over 60% compared to a year ago," said David Hovind, president. "This resulted from a surge in truck orders in first half 2002. Most of the increase in orders was due to 'pull-forward purchases,' as fleets tried to minimize the impact of more costly engines being introduced after Oct. 1, 2002. Fourth quarter 2002 and first quarter 2003 industry production rates could be unfavorably impacted as a result of the accelerated buying, increased fuel prices and slow growth of general freight."
"European industry heavy-duty truck sales continue to be 10-15% lower in 2002 compared to the near record levels of 2001," stated Hovind. "DAF has increased its heavy-duty market share to over 12%. DAF continues to earn many industry awards and is recognized as the European truck quality leader, similar to how customers regard the Kenworth and Peterbilt brands in North America."
Hovind added, "Paccar has achieved a record 6.4% registration share in the Class 6-7 truck and tractor market in North America. In addition, Kenworth and Peterbilt combined have earned the J.D. Power Customer Satisfaction Award for three consecutive years for medium-duty trucks. The growth in our medium-duty sales has generated increased contribution to our dealers' profitability."
Paccar's Financial Services segment represents a portfolio of nearly 110,000 trucks and trailers, with total assets of $4.9 billion. Included in this segment is Paccar Leasing, a major full-service truck leasing company in North America, with a portfolio of more than 15,000 vehicles.
Third quarter revenues were $110 million compared to $112 million in the same quarter of 2001, while pretax income of $22.6 million increased 176% from $8.2 million in third quarter 2001. For the nine-month period, revenues were $322 million compared to $349 million for the same period a year ago. Pretax income for nine months was $47.3 million in 2002 compared to $28.0 million in 2001.
"Paccar's Financial Services companies continue to profitably support the sale of Paccar trucks throughout North America, Europe and Australia with their comprehensive financing products," said Mike Tembreull, vice chairman. "Fleet bankruptcies and repossessions in the U.S. are declining and used truck prices for PACCAR vehicles continue to be 10-15% higher than the competition."