“PACCAR (Nasdaq:PCAR) reported increased revenues and net income for the second quarter of 2012,” said Mark Pigott, chairman and chief executive officer. “PACCAR’s second quarter results reflect the benefits of higher truck sales in North and South America and good financial services results worldwide as compared to the second quarter of 2011. The weak economic growth in the United States, coupled with the ongoing uncertainty in the Eurozone, could dampen truck orders for the remainder of 2012. I am very proud of our 23,000 employees who have delivered excellent results to our shareholders and customers.”
Kenworth T800 LNG (Photo: Business Wire)
“PACCAR’s strong balance sheet and consistent profitability have enabled ongoing investments which enhance PACCAR’s global operations, deliver excellent operating efficiency and support the development of innovative new products. During the second quarter, Kenworth and Peterbilt began production of their new T680 and Model 579 trucks, and DAF showcased its new PACCAR MX 13-liter Euro 6 engine. These investments will contribute to the company’s long-term growth,” said Pigott.
PACCAR earned $297.2 million ($0.83 per diluted share) for the second quarter of 2012, a 24 percent increase compared to $239.7 million ($0.65 per diluted share) earned in the second quarter last year. Second quarter net sales and financial services revenues were $4.46 billion, compared to $3.96 billion reported in 2011. Net sales and financial services revenues for the first six months of 2012 were $9.23 billion, up 27 percent compared to $7.24 billion last year. For the first six months of 2012, PACCAR reported net income of $624.5 million ($1.75 per diluted share), an increase of 44 percent compared to the $433.0 million ($1.18 per diluted share) in 2011.
Stock Repurchase Update
During the second quarter of 2012, PACCAR repurchased 3.2 million of its common shares for $123.9 million. “Over the past twelve months, PACCAR has purchased 12.8 million PACCAR shares for a total investment of $477.1 million,” noted Ron Armstrong, PACCAR president. “PACCAR’s excellent net profits and strong cash flow make the company’s shares an attractive long-term investment.” PACCAR’s shareholder return averaged 14.9 percent annually in the last ten years, compared to the S&P 500 Index average annual return of 5.3 percent for the same period.