The company delivered a record quarterly number of trucks, driven by Kenworth, Peterbilt and DAF’s strong market share and global truck demand. PACCAR Parts also achieved record quarterly revenues and pretax profits.
“Our customers are profitable and benefiting from continued economic and freight growth in North and South America and Europe”, said Ron Armstrong, PACCAR CEO. “We expect 2019 to be another excellent year for PACCAR. Kenworth and Peterbilt’s 2019 build schedules are substantially full; DAF is increasing market share in the European market; and the South American above 16-tonne truck market is expected to increase approximately 25% in 2019 compared to last year.”
First quarter 2019 net sales and financial services revenues were $6.49 billion, 15% higher than the $5.65 billion earned in the first quarter of 2018.
PACCAR repurchased 491,000 of its common shares for $32.8 million during the first quarter of 2019. The board of directors approved the repurchase of $300 million of its outstanding common stock in July 2018, and an additional $500 million of its common stock in December 2018. Stock repurchases of $507.2 million are remaining under these authorizations.
PACCAR has paid an annual dividend every year since 1941 and increased its regular quarterly dividend an average of 11% per year during the last 20 years.
Other highlights from the first quarter of 2019 included:
Record global truck deliveries of 51,500 units
Record PACCAR Parts revenues of $1 billion and pretax profits of $207.6 million
Research and development expenses of $78.3 million
After-tax return on revenues of 9.7%
Manufacturing cash and marketable securities of $3.81 billion
Stockholders’ equity of $9.11 billion
PACCAR designs, manufactures and provides customer support for high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. The company also designs and manufactures advanced diesel engines, provides financial services and information technology, and distributes truck parts related to its principal business.
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