PACCAR Reports Record Revenues, Financial Services Pretax
FEB 2, 2015 - 7:12 am
PACCAR reported record revenues of $19.0 billion in 2014 compared to revenues of $17.1 billion in 2013. Net income of $1.4 billion in 2014, up 16% compared to $1.2 billion earned last year.
PACCAR said Q4/14 net sales and financial service revenues were a quarterly record $5.1 billion, up 11% compared to $4.6 billion for the same period in 2013. PACCAR Q4/14 earnings of $394.3 million were up 18% compared to $334.2 million in Q4/13.
“Class 8 truck industry retail sales in the U.S. and Canada were 250,000 units in 2014, compared to the 212,000 vehicles sold in 2013,” said Dan Sobic, PACCAR executive vice president. “Truck demand is being driven by the improving economy and fleet expansion. In 2014, PACCAR achieved a Class 8 retail market share in the U.S. and Canada of 27.9% as customers benefited from Kenworth and Peterbilt vehicles’ excellent fuel efficiency and outstanding vehicle performance. Estimates for U.S. and Canada Class 8 truck industry retail sales in 2015 are in the range of 250,000-280,000 units, driven by further expansion of truck industry fleet capacity and economic growth,” added Sobic.
“PACCAR Financial Services (PFS) profit increased due to higher asset balances and excellent portfolio performance in 2014,” said Bob Bengston, PACCAR senior vice president. PFS achieved fourth quarter 2014 pretax income of $96.3 million compared to $90.4 million earned in the fourth quarter of 2013. Fourth quarter 2014 revenues were $302.0 million compared to $299.5 million in the same quarter of 2013. For the full year, PFS pretax income was a record $370.4 million, an increase of 9% compared to $340.2 million in 2013. Full year revenues were $1.20 billion compared to $1.17 billion for the same period a year ago.
“PACCAR’s excellent 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. PFS has excellent access to the debt markets, issuing $1.58 billion in three-, four- and five-year term notes during 2014.
PFS has a portfolio of 166,000 trucks and trailers, with total assets of $11.92 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of over 38,000 vehicles, is included in this segment.
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