The Class 8 truck order slowdown took a toll on fourth-quarter revenue and profits at PACCAR Inc. (NASDAQ: PCAR), but the parent company of Kenworth and Peterbilt trucks posted a full-year record in both measures and claimed 30% of the U.S. and Canadian market.
PACCAR posted fourth-quarter revenues of $6.12 billion compared with $6.28 billion in the same period in 2018. Earnings were $531.3 million, or $1.53 per diluted share, in the fourth quarter compared with $578.1 million, or $1.65 per diluted share, in the fourth quarter of 2018.
For all of 2019, PACCAR reported record revenues of $25.60 billion, up 9% over revenues of $23.50 billion in 2018. Earnings of $2.39 billion, or $6.87 per diluted share, were also a record and 9% higher than the $2.20 billion, or $6.24 per diluted share, earned in 2018.
Fourth-quarter financial highlights:
- Consolidated net sales and revenues of $6.12 billion.
- Net income of $531.3 million.
- PACCAR Parts revenue of $993.9 million.
- PACCAR Parts pretax income of $205.2 million.
- PACCAR Financial Services earned $68.1 million.
- PACCAR invested $323.2 million in capital projects and research and development.
PACCAR maintained a larger backlog of trucks for much of 2019 compared to competitors either caught short of production capacity like Daimler Trucks North America or others, like Navistar International Corp. (NYSE: NAV), which reversed capacity additions.
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Rick
As free advice to potential buyers of these “newer” trucks to look into why mega carriers dump these trucks onto the market after a service life of only 3 to 5 yrs.
If the truck was so good at saving fuel and being touted as reliable why get rid of such a good workhorse that offers these benefits after such a short time? The answer is because they know 1st hand the multiple problems that happen with these vehicles after a certain time and only keep them while under manufacturer warranty. It’s a shame because these newer trucks are comfortable and spacious with features that drivers do appreciate while out on the road but its only skin deep. The rest of the vehicle engine and emissions systems make these vehicles throw-always after a short period of time and cost OO and small fleets $$ to run and maintain.
Proof just look at Paccars parts revenue and pretax income! It overshadows their financial services earnings by a large margin.
• PACCAR Parts revenue of $993.9 million.
• PACCAR Parts pretax income of $205.2 million.
• PACCAR Financial Services earned $68.1 million.
This is where they make their bread selling parts for these vehicles to US who struggle everyday out on the road to deliver products to businesses and people across America.
These manufacturers don’t build these with pride and integrity to stand the test of time no more. These words don’t mean anything to the top brass in the industry but simply exist as banners inside warehouses & factories for show.
A clean new shiny vehicle doesn’t translate to a good work truck – it’s simply just what it is- a shiny new toy.