PACCAR Reports FY Earnings Record; Excellent PFS Portfolio Performance

PACCAR achieved record revenues of $19.12 billion in 2015 compared to revenues of $18.99 billion in 2014. Net income was a record $1.60 billion, up 18% compared to $1.36 billion earned last year.

Q4/15 net sales and financial service revenues were $4.36 billion compared to $5.12 billion for the same period in 2014. PACCAR earned $347.2 million in Q4/15 compared to $394.3 million in Q4/14, which reflects lower truck deliveries in North America, partially offset by increased deliveries in Europe.

Global Truck Markets

“Class 8 truck industry retail sales in the U.S. and Canada were a robust 278,000 units in 2015, compared to the 250,000 vehicles sold in 2014,” said Gary Moore, PACCAR executive vice president. “Truck demand is being driven by good economic growth, strong freight tonnage and lower fuel prices. In 2015, PACCAR achieved a Class 8 retail market share in the U.S. and Canada of 27.4% as customers benefited from Kenworth and Peterbilt vehicles’ excellent fuel efficiency and outstanding performance.

Estimates for U.S. and Canada Class 8 truck industry retail sales are for another good year in 2016 with sales in the range of 230,000-260,000 units, driven by ongoing economic growth and customers’ focus on achieving enhanced operating efficiency with new Peterbilt and Kenworth trucks,” added Moore.

Financial Services

PACCAR Financial Services (PFS) achieved Q4/15 pretax income of $89.9 million compared to $96.3 million earned in Q4/14. Fourth quarter 2015 revenues were $292.8 million compared to $302.0 million in the same quarter of 2014. PFS earned $362.6 million of pretax profit in 2015 compared to $370.4 million in 2014, and full year revenues were $1.17 billion compared to $1.20 billion for the same period a year ago.

“PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 22 countries on four continents,” said Todd Hubbard, PACCAR Financial president. PACCAR Financial Services has excellent access to the debt markets, issuing $1.92 billion in three-, four- and five-year term notes during 2015.

“Excellent portfolio performance contributed to strong PFS results in 2015,” said Bob Bengston, PACCAR senior vice president.

PFS has a portfolio of 175,000 trucks and trailers, with total assets of $12.25 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of over 39,000 vehicles, is included in this segment.

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