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Paccar Announces Excellent Quarterly Revenues And Earnings European Truck Market Rebounds Strongly

The following excerpt is from the company's SEC filing.

October 27, 2015, Bellevue, Washington

PACCAR reported strong revenues and net income for the third quarter of 2015, said Ron Armstrong, chief executive officer. PACCARs third quarter results reflect the benefits of increased truck sales in North America and Europe, and excellent aftermarket parts and financial services results worldwide. This was the second best quarter in PACCARs 110-year history. I am very proud of our 24,500 employees who have delivered outstanding results to our shareholders and customers.

PACCAR earned $431.2 million ($1.21 per diluted share) for the third quarter of 20 15, an increase of 16 percent compared to $371.4 million ($1.04 per diluted share) earned in the third quarter of 2014. Third quarter net sales and financial services revenues were $4.85 billion this year compared to $4.93 billion for the same period last year. PACCAR achieved an 8.9% after-tax return on revenues in the third quarter versus a 7.5% after-tax return on revenues a year ago. For the first nine months of 2015, PACCAR reported a 31% increase in net income to $1.26 billion ($3.53 per diluted share) compared to $964.5 million ($2.71 per diluted share) in 2014. Net sales and financial services revenues for the first nine months of 2015 were $14.76 billion compared to $13.88 billion last year.

Our DAF customers in Europe are benefiting from improved economic growth, low interest rates, strong freight activity and the excellent operating efficiency of the DAF Euro 6 range of trucks, noted Armstrong. DAF increased production at its Eindhoven truck assembly factory to record rates in the fourth quarter to meet customer demand for our industry-leading DAF vehicles.

DAF XF Euro 6 Vehicle

PACCAR Repurchases Shares and Announces New $300 Million Authorization

PACCAR repurchased 1.37 million of its common shares for $78.6 million during the third quarter. PACCAR completed its previously authorized $300 million share repurchase program, and the PACCAR Board of Directors approved the repurchase of an additional $300 million of its outstanding common stock. The new authorization has $286.8 million available for repurchases as of September 30, 2015. PACCARs excellent net profits and strong cash flow make the companys shares an attractive long-term investment. The stock repurchase program reflects the Boards confidence in PACCARs successful global business growth, said Bob Christensen, PACCAR president and chief financial officer.

Financial Highlights Third Quarter 2015

Highlights of PACCARs financial results for the third quarter of 2015 include:

Consolidated sales and revenues of $4.85 billion.

Net income of $431.2 million, an 8.9 percent after-tax return on revenues.

PACCAR Parts quarterly pre-tax income of $145.4 million.

Financial Services quarterly pre-tax income of $92.9 million.

Cash generated from operations of $664.1 million.

Manufacturing cash and marketable securities of $3.45 billion.

Medium-term note issuances of $630.2 million.

Financial Highlights Nine Months 2015

Highlights of PACCARs financial results for the first nine months of 2015 include:

Consolidated sales and revenues of $14.76 billion.

Net income of $1.26 billion.

PACCAR Parts revenues of $2.31 billion and record pre-tax income of $430.0 million.

Financial Services pre-tax income of $272.7 million.

Cash generated from operations of $1.85 billion.

Medium-term note issuances of $1.94 billion.

Global Truck Markets

Customers recognize DAFs product quality leadership, low operating costs and excellent resale value, said Harrie Schippers, DAF president. DAFs above 16-tonne truck registrations year-to-date were up 30% versus the same period last year. The European truck industry above 16-tonne market registrations year-to-date increase is 20%. It is estimated that European truck industry sales in the above 16-tonne market will be in the range of 255,000-265,000 units this year and are projected to increase to a range of 250,000-280,000 units in 2016.

The U.S. and Canada truck industry Class 8 retail sales year-to-date are 18% higher compared to the same period last year. Kenworth and Peterbilt customers are benefiting from good economic growth, strong freight tonnage and lower fuel prices, said Dan Sobic, PACCAR executive vice president. Next year should be another strong year for truck sales. Class 8 industry retail sales for the U.S. and Canada in 2015 are estimated to be in the range of 275,000-285,000 vehicles. Estimates for U.S. and Canada truck industry Class 8 retail sales in 2016 are in the range of 240,000-270,000 units.

Kenworth and Peterbilt Technology Leadership Enhances Vehicle Performance

Kenworth and Peterbilt Predictive Cruise Control is in production for Kenworth T680 and T880 and Peterbilt Model 579 and Model 567 trucks, specified with the PACCAR MX-13 engine. This innovative technology integrates cruise control with global positioning data to predict road contours, enabling trucks equipped with the PACCAR MX-13 engine and integrated transmission to achieve optimal fuel economy, said Darrin Siver, PACCAR vice president and Peterbilt general manager.

Kenworth and Peterbilt have...


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