PACCAR Reports 70 Consecutive Years of Net Profit - aftermarketNews

PACCAR Reports 70 Consecutive Years of Net Profit

Global recession impacting commercial vehicle markets, says CEO.

BELLEVUE, Wash. – PACCAR’s net earnings for the fourth quarter of 2008 were $113.1 million (31 cents per diluted share) compared to the $261.1 million (71 cents per diluted share) earned in the fourth quarter of 2007. Fourth quarter net sales and financial service revenues were $2.92 billion compared to $3.76 billion reported for the comparable period in 2007. During the quarter, the company generated $345.4 million in operating cash flow.

For the full-year 2008, consolidated net sales and financial service revenues were $14.97 billion versus $15.22 billion in 2007. Net income earned in 2008 of $1.02 billion ($2.78 per diluted share) was 17 percent lower than the $1.23 billion ($3.29 per diluted share) earned during 2007. Cash dividends of 82 cents per share were declared during 2008, including a special dividend of 10 cents per share. During the last decade, PACCAR’s regular dividends have had an annualized increase of 19.8 percent per year. In 2008, PACCAR distributed $859.7 million to shareholders in dividends and share repurchases.

“PACCAR earned its fourth highest annual net income in its 103-year history in 2008 and has delivered a remarkable 70 consecutive years of net profit to its shareholders,” said Mark Pigott, chairman and chief executive officer. “PACCAR’s financial results reflect the benefits of the company’s quality products and services, geographic diversification, excellent aftermarket revenues and financial services income. I am very proud of our 18,000 employees who have delivered exceptional performance to our shareholders and customers, especially in today’s very difficult business conditions.

“PACCAR’s excellent balance sheet and strong cash flow have enabled ongoing investments in capital projects such as diesel engines, new vehicles and factory productivity improvements. These projects will assist the company in achieving its long-term growth objectives,” added Pigott. “However, the severe recession is affecting our business in North America and Europe. Our fourth quarter 2008 financial results were negatively impacted by reduced gross margins, lower build rates and temporary plant shutdowns. These challenges are increasing in 2009. PACCAR is rigorously reducing operating expenses and capital expenditures to align the business with the slower markets.”

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