Paccar Reports Record Revenue in 4Q, Full Year

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Transport Topics  /  January 30, 2018

Truck maker Paccar Inc. reported record sales and improved net income for the 2017 fourth quarter and full year, benefiting from peak North American market share and aftermarket parts sales.

“Paccar’s financial results reflect the company’s premium-quality products and services, record heavy-duty truck market share in the U.S. and Canada, record aftermarket parts results and a strong European truck market,” Paccar CEO Ron Armstrong said in a statement.

Quarterly net income for the period ended Dec. 31 was $589.2 million, or $1.67 per diluted share, including $173.4 million of net tax benefits resulting from the Tax Cuts and Jobs Act of 2017 that reduced corporate tax rates.

Excluding the tax benefits, net income was $415.8 million, or $1.18. That compares with $288.8 million, or 82 cents in the fourth quarter of 2016.

Revenue in the quarter jumped 34% to $5.45 billion, a record, compared with $4.07 billion for the same period in 2016.

For all of 2017, total net income reached $1.68 billion, or $4.75, including the one-time tax benefit. Excluding the benefit, net income was $1.50 billion, or $4.26.

In 2016, the company reported annual net income of $521.7 million, or $1.48, including an $833 million nonrecurring charge for a European Commission settlement. Excluding the charge, 2016 net income was $1.35 billion, or $3.85.

For the full year, revenue rose 14% to a record $19.46 billion, compared with the year-earlier period.

“The enacted tax legislation will generate positive cash flow for Paccar as well as benefit the transportation industry in the United States,” Paccar Chief Financial Officer Harrie Schippers said in a statement. “The revised corporate tax rate, comparable to other leading OECD countries’ tax rates, and accelerated machinery and equipment depreciation, will likely stimulate increased capital investment in the United States.”