BELLEVUE, WA — PACCAR achieved record revenues and net income for the first quarter of 2006, according to Mark Pigott, chairman and chief executive officer.
PACCAR earned $342 million ($2.02 per diluted share) for the first quarter 2006, an increase of 25 percent compared to the $274 million ($1.56 per diluted share) earned in the first quarter of 2005. First quarter net sales and financial services revenues were $3.85 billion versus $3.33 billion for the first quarter of last year. The company’s after-tax return on consolidated revenues (ROR) was a record 8.9 percent in the first quarter of 2006 compared to 8.2 percent in the first quarter of 2005.
The PACCAR Board of Directors approved an increase to the regular quarterly dividend from 25 cents per share to 30 cents per share, effective with the dividend payment of June 5 for shareholders of record May 18. PACCAR has raised its regular quarterly dividend nine times in the last ten years, an increase of 435 percent over the decade. PACCAR has paid a quarterly dividend every year since 1941.
PACCAR reported these key financial highlights for the first quarter of 2006:
— Record quarterly revenues of $3.85 billion.
— Record quarterly net income of $342.0 million.
— Excellent financial services pretax profits of $54.8 million.
— An annualized return on beginning equity (ROE) of 35.1 percent.
— Manufacturing SG&A expense to sales reached a record low 3.0 percent.
— Shareholder’s equity increased to over $4 billion.
Revenues at PACCAR Parts, the company’s aftermarket parts division, continued to increase in the first quarter as more dealers and customers use the company’s proprietary inventory management software systems. PACCAR’s aftermarket parts revenues were $1.7 billion in 2005 and the compound annual growth rate (CAGR) in parts sales has been nearly 14 percent over the past decade.
During the first quarter of 2006, PACCAR repurchased 2.5 million of its common shares ($175 million invested) under a five million share program announced on October 25, 2005. “The share repurchase programs reinforce the fact that PACCAR is an excellent long-term investment. The company’s goal is that its market valuation ratios be equal to other premier global industrial companies,” noted Tembreull. PACCAR has returned over $1.4 billion to shareholders through dividends and share repurchases during the past 15 months.
“PACCAR is earning record income due to the benefits of ongoing capital investments throughout the company,” said Tom Plimpton, president. “In order to further enhance its industry leadership, PACCAR will increase capital and expense investment by constructing new facilities, accelerating product development, and growing financial services and technology platforms. Examples of these investments are a new engine test center in Europe, 20 percent increase in Kenworth manufacturing capacity, new parts distribution centers, new aerodynamic and hybrid vehicles, PACCAR Leasing expansion, and new finance and manufacturing information systems. The cost of these exciting projects will increase research and development expenses, but will position the company for even stronger growth in the future.”
For more information about PACCAR, go to: www.paccar.com.
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