PACCAR Q3 Revenue Higher; Retail Sales Expected to Increase in 2018

PACCAR reported Q3/17 net sales and financial services revenues were $5.06 billion, compared to $4.25 billion in Q3/16. PACCAR earned net income of $402.7 million in Q3/17 compared to net income of $346.2 million in the same period last year.

Net sales and financial services revenues for the first nine months of 2017 were $14.00 billion compared to $12.96 billion last year. PACCAR earned $1.09 billion for the first nine months of 2017. The company reported net income of $232.9 million in the first nine months of last year. PACCAR reported adjusted net income of $1.07 billion in the first nine months of 2016, excluding an $833.0 million non-recurring charge for a European Commission settlement.

Good Global Truck Markets

Class 8 truck industry retail sales for the U.S. and Canada are expected to be in a range of 210,000 to 220,000 vehicles in 2017. Class 8 truck industry retail sales for the U.S. and Canada are estimated to increase in 2018 to a range of 220,000 to 250,000 vehicles.

Peterbilt and Kenworth achieved strong year-to-date U.S. and Canada Class 8 retail sales market share of 30.1%, compared to 27.9% in the same period last year. “Our customers are benefiting from the excellent operating efficiency of the industry-leading Peterbilt and Kenworth trucks and PACCAR Powertrain,” said Gary Moore, PACCAR executive vice president.

“Customer demand in Europe has been robust this year due to continued economic growth and the superior operating performance of the new DAF XF, CF and LF trucks,” said Preston Feight, DAF president and PACCAR vice president. “DAF’s Eindhoven, Netherlands factory is producing trucks at record daily build rates.” It is estimated that the European truck industry registrations in the above 16-tonne segment will be in the range of 300,000 to 310,000 units this year, one of the best markets in history. Registrations are projected to result in another excellent market in 2018 in the range of 280,000 to 310,000 units.

Financial Services Companies Achieve Good Results 

PACCAR Financial Services (PFS) offers retail financing to Peterbilt, Kenworth and DAF dealers and customers. PFS has a portfolio of 184,000 trucks and trailers, with record total assets of $13.06 billion. PacLease, a major full-service truck leasing company in North America and Europe, with a fleet of 37,000 vehicles, is included in this segment.

PACCAR Financial Services (PFS) achieved good profits during the third quarter and first nine months of 2017 due to excellent portfolio performance. PFS earned $71.2 million in the third quarter this year compared to $71.0 million earned in the same period last year. Q3/17 revenues were $328.2 million compared to $296.2 million in the same quarter of 2016. For the nine-month period, PFS pre-tax income was $191.5 million in 2017 compared to $228.6 million last year. Nine-month revenues were $936.7 million in 2017 compared with $883.0 million for the same period a year ago.

“PFS’ portfolio performed well during the third quarter of 2017,” said Bob Bengston, PACCAR senior vice president. “Industry demand for used trucks in the U.S. increased in the third quarter compared to the second quarter of this year. Kenworth and Peterbilt truck resale values continue to command a 10% to 20% premium over competitors’ trucks.”

“PACCAR reported excellent revenues and net income for the third quarter of 2017,” said Ron Armstrong, chief executive officer. “PACCAR’s third quarter results reflect a strong European truck market, increased PACCAR market share in North America, and record global aftermarket parts results. I am very proud of our 25,000 employees who have delivered industry-leading products and services to our customers.”

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Terry Mulreany
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