Paccar Reports 4Q, Full-Year Revenue Records

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Transport Topics  /  January 29, 2019

Global Deliveries Also Set New High

Paccar Inc. reported record revenue in the fourth quarter and, excluding one-time benefits, higher net income. Annual revenue and net income set records, too, as it delivered 189,100 vehicles worldwide in 2018.

Quarterly net income for the period ended Dec. 31 was $578.1 million, or $1.65 per diluted share.

That compared with $589.2 million, or $1.67, in the fourth quarter of 2017, including $173.4 million of net tax benefits resulting from changes to U.S. tax law. Excluding the one-time tax benefits, Paccar reported adjusted net income of $415.8 million, or $1.18, in the fourth quarter of 2017.

Quarterly revenue was a record $6.28 billion, a 15% increase compared with $5.45 billion reported in the same period in 2017.

“The North American and European economies are projected to continue growing in 2019,” CEO Ron Armstrong said in a release. “Our customers are very profitable and benefiting from strong freight demand. Freight activity grew 6.6% in the U.S. in 2018, the highest growth in 20 years. Kenworth and Peterbilt’s 2019 build schedules are substantially full due to the robust orders. We expect 2019 to be another excellent year for Paccar.”

The original equipment manufacturer also posted record quarterly worldwide deliveries of 50,400 trucks.

Parts revenue of $970.9 million in the quarter was a record.

For the full year, Paccar earned record net income of $2.20 billion, or $6.24 per diluted share, 31% higher than the $1.68 billion, or $4.75, earned in 2017. Paccar’s 2018 net income of $2.20 billion increased 47% compared with 2017 adjusted net income (non-GAAP) of $1.5 billion, or $4.26.

Paccar achieved record revenue of $23.50 billion in 2018, a 21% increase compared to revenue of $19.46 billion in 2017.