PACCAR FY/16 Earnings Down On Lower Class 8 Sales, EC Settlement

PACCAR achieved Q4/16 net sales and financial service revenues of $4.07 billion compared to $4.36 billion for the same period in 2015. PACCAR earned $288.8 million for Q4/16 compared to $347.2 million in Q4/15, which reflects lower truck deliveries in North America. PACCAR achieved revenues of $17.03 billion in 2016 compared to revenues of $19.12 billion in 2015.

PACCAR reported net income of $521.7 million in 2016, including an $833.0 million non-tax-deductible, non-recurring charge for a European Commission (EC) settlement. Excluding the non-recurring charge, PACCAR reported adjusted net income (non-GAAP) of $1.35 billion in 2016. The company earned $1.60 billion in 2015.

“Class 8 truck industry retail sales in the U.S. and Canada were 216,000 units in 2016, compared to 278,000 vehicles sold in 2015,” said Gary Moore, PACCAR executive vice president. “Truck demand is supported by good economic growth, strong freight tonnage and low fuel prices. PACCAR’s excellent fourth quarter Class 8 retail market share of 30.4% in the U.S. and Canada increased its full year 2016 market share to 28.5%, compared to 27.4% in full year 2015. Customers benefited from Kenworth and Peterbilt vehicles’ industry-leading fuel efficiency and performance.”

Estimates for U.S. and Canada Class 8 truck industry retail sales in 2017 are in the range of 190,000-220,000 trucks.

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