BELLEVUE, WA — PACCAR has reported record revenues and net income for the second quarter and first half of 2006, according to Mark Pigott, chairman and chief executive officer. Pigott attributed the company’s market share gains to global economic growth and accelerated new product introductions, complemented by excellent financial services and aftermarket parts programs.
PACCAR earnings increased 53 percent to $369.9 million ($2.21 per diluted share) for the second quarter of 2006 compared to $241.5 million ($1.39 per diluted share) earned in the second quarter last year. Second quarter net sales and financial services revenues were a record $4.17 billion, 17 percent higher than the $3.56 billion reported for the comparable period in 2005. For the first six months of 2006, PACCAR reported record net income of $711.9 million ($4.23 per diluted share), a 38 percent increase compared to $515.5 million ($2.95 per diluted share) in 2005. Net sales and financial services revenues for the first six months of 2006 increased 17 percent to a record $8.02 billion compared to $6.88 billion last year. Included in PACCAR’s 2005 second quarter and first half net income was a one-time charge of $64 million (37 cents per diluted share) for income taxes associated with the repatriation of $1.5 billion of foreign earnings.
Earlier this month PACCAR announced a 50 percent stock dividend of the company’s common stock payable to shareholders of record at the close of business on July 27. The new shares will be issued on Aug. 10.
During the second quarter of 2006, PACCAR invested $64.6 million to repurchase 879,000 of its common shares. Approximately 3.9 million shares have been repurchased pursuant to the five million share authorization from its board of directors.
In other company news, PACCAR Parts has announced plans to construct new distribution centers in two important markets. A 260,000-square-foot parts distribution center on a 33-acre site in Oklahoma City will open early next year to serve the North American market and a state-of-the-art facility will be built in Hungary to support the company’s expanding presence in Central Europe.
“Upon completion of these new $25 million facilities, PACCAR will operate 13 strategically located PDCs which provide daily delivery of aftermarket parts to PACCAR’s growing base of dealers and customers,” said Bill Jackson, PACCAR vice president and PACCAR Parts general manager. “PACCAR Parts has more than tripled its sales since 1996, reaching $1.7 billion in 2005. These additional capital investments will enable the parts business to continue its strong double-digit growth and cushion the cyclicality of the manufacturing business.”
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