PACCAR reported record revenues and net income for the first quarter of 2019,” said Ron Armstrong, chief executive officer. “PACCAR delivered a record quarterly number of trucks, driven by Kenworth, Peterbilt and DAF’s strong market share and robust global truck demand. PACCAR Parts achieved record quarterly revenues and pretax profits. I am very proud of our 28,000 employees who have delivered industry-leading products and services to our customers.”
“Our customers are profitable and benefiting from continued economic and freight growth in North and South America and Europe”, added Armstrong. “We expect 2019 to be another excellent year for PACCAR. Kenworth and Peterbilt’s 2019 build schedules are substantially full; DAF is increasing market share in the European market; and the South American above 16-tonne truck market is expected to increase approximately 25% in 2019 compared to last year.”
First quarter 2019 net sales and financial services revenues were $6.49 billion, 15 percent higher than the $5.65 billion earned in the first quarter of 2018. PACCAR achieved net income of $629.0 million ($1.81 per diluted share) in the first quarter of this year, 23 percent higher than the $512.1 million ($1.45 per diluted share) earned in the same period last year. “After-tax return on revenues was an impressive 9.7%,” noted Armstrong.
First Quarter Share Repurchases and Long-term Dividend Growth
PACCAR repurchased 491,000 of its common shares for $32.8 million during the first quarter of 2019. PACCAR’s Board of Directors approved the repurchase of $300 million of its outstanding common stock in July 2018, and an additional $500 million of its common stock in December 2018. Stock repurchases of $507.2 million are remaining under these authorizations.
PACCAR has paid an annual dividend every year since 1941 and increased its regular quarterly dividend an average of 11% per year during the last 20 years. “PACCAR has delivered annual dividends, including regular quarterly and extra cash dividends, totaling approximately 50% of net income for many years,” said Harrie Schippers, PACCAR president and chief financial officer.
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