Auto Service World
News   February 1, 2006   by Auto Service World

PACCAR Profits Reflect Buoyant Heavy Duty Market

PACCAR Inc. makers of Kenworth, Peterbilt and DAF trucks, reported record revenues and net income for 2005 as well as earning its highest quarterly profit in its 100-year history.
Mark C. Pigott, chairman and chief executive officer, says, “These outstanding results are especially noteworthy as the company celebrated its Centennial anniversary in 2005. PACCAR has achieved 67 consecutive years of net profitability and has enhanced its distinguished reputation as one of the leading global technology companies. The strength of the company is a direct reflection of the unparalleled innovation and dedication of our 21,900 employees worldwide.”
PACCAR earned a record $312.9 million ($1.83 per diluted share) for the fourth quarter 2005, which was an increase of 30 percent compared to the $241.4 million ($1.38 per diluted share) earned in the fourth quarter of 2004. Fourth quarter net sales and financial service revenues were a quarterly record of $3.64 billion, 14 percent higher than the $3.19 billion reported for the comparable period in 2004.
All figures in U.S. dollars.
The company’s 2005 fourth quarter after-tax return on revenue (ROR) was 8.6 percent — equaling the record established in the third quarter of 2005.
Consolidated net sales and financial service revenues for full-year 2005 were a record $14.06 billion, an increase of 23 percent from $11.40 billion in 2004. Yearly net income in 2005 of $1.13 billion ($6.56 per diluted share) increased 25 percent over 2004 earnings of $906.8 million ($5.16 per diluted share). Included in PACCAR’s 2005 net income is a one-time charge of $64 million ($.37 per diluted share) for income taxes associated with the repatriation of $1.5 billion from its subsidiaries outside the United States. Dividends of $2.87 per share were declared during 2005, including a special dividend of $2.00.
PACCAR’s dividend yield of 3.9 percent places it in the top 50 companies in the S&P 500.

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