Paccar breaks two financial records

Net income and annual revenue reach new heights for Paccar in 2015

Paccar breaks two financial records
Paccar's truck division had a positive 2015.


Celebrating its 110th year, manufacturing giant Paccar has announced a record annual revenue of US$19.12 billion (A$27.03 billion) and a record net income of US$1.60 billion (A$2.26 billion).

Marking the 77th consecutive year of net income for the company, Paccar CEO Ron Armstrong says the employees have delivered an outstanding performance for shareholders and customers in 2015.

"Paccar’s financial results reflect the company’s premium-quality products and services and increased North American and European truck deliveries, complemented by excellent aftermarket parts and Paccar Financial Services results," he says.

"I am very proud of our 23,000 employees."

While the 2015 revenue rose slightly – in percentage terms – from the US$18.99 billion (A$26.85 billion) in 2014, the company’s net income jumped 18 per cent from its previous point at US$1.36 billion (A$1.92 billion).

Paccar delivered 154,700 vehicles worldwide in 2015; 91,300 of those in the US and Canada, and 47,400 of those in Europe.   

Both markets were up on 2014, with North America and Europe rising by 6,500 and 7,900, respectively.

However, numbers from the rest of the world were 2,600 vehicles down for the 12 months to 16,000.

Paccar Financial Services, which encompasses PacLease the rental company that was launched in Australia during the year, saw a pretax profit decrease to US$362.60 million (A$512.66 million), and a revenue drop from US$1.20 billion (A$1.70 billion) to US1.17 billion (A$1.65 billion).

Paccar Parts on the other hand had a pretax profit growth in 2015, moving from US$496.70 million (A$688.12) to US$555.6 million (A$785.54 million).

While it may have been a pretax profit record for the division, the annual revenue figure dropped slightly from US$3.08 million (A$4.35 million) to US$3.06 million (A$4.33 million).

According to the CEO, the company is financially setup for a new product growth.

"Paccar is well-positioned for long-term growth with investments in new state-of-the-art DAF, Kenworth and Peterbilt vehicles, innovative Paccar engines, geographic expansion, aftermarket parts and service capabilities, factory enhancements, and truck technologies that increase fuel-efficiency and reliability," Armstrong says.

"Stockholders’ equity was a year-end record [US]$6.94 billion at December 31, 2015."


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