PACCAR Inc's Board of Directors declared an extra cash dividend in the amount of one dollar per share, payable on January 7, 2008, to stockholders of record at the close of business on December 18, 2007. The Board of Directors also declared a quarterly cash dividend in the amount of eighteen cents per share, payable on March 5, 2008, to stockholders of record at the close of business on February 19, 2008, according to Mark C. Pigott, PACCAR chairman and chief executive officer.
PACCAR's quarterly dividend has increased an average of 20 percent per year during the last decade. The company will deliver over $1 billion to its stockholders in 2007 from the repurchase of 7 million shares plus the extra and quarterly dividends.
For the first nine months of 2007, PACCAR reported net income of $966.2 million ($2.58 per diluted share). "PACCAR has earned a net profit for 69 consecutive years and has paid a dividend every year since 1941," noted Mike Tembreull, vice chairman. "PACCAR has established itself as a global leader in financial services, aftermarket customer support, information technology and lean manufacturing."
PACCAR has achieved a compound annual growth rate (CAGR) in earnings per share for the last ten years of 22.8 percent compared to the S&P 500's growth rate of 7.7 percent. The company's stock has outperformed the Standard & Poor's 500 Index for the previous one-, three-, five- and ten-year time periods.
Peterbilt Motors earned the prestigious J.D. Power and Associates Customer Satisfaction Award for its conventional medium-duty trucks in 2007. Peterbilt has won this industry award three of the last four years. "Peterbilt's Class 5-7 vehicles are delivering outstanding quality performance, which has generated higher market share," said Dan Sobic, senior vice president. "Peterbilt recently introduced its new Class 5 vehicle for urban applications and plans to launch its hybrid vehicle in mid-2008."
"DAF continues to benefit from a strong Western and Central European truck market. DAF will increase its production rate by 5 percent in the first quarter," commented Tom Plimpton, president. The U.S. and Canadian truck markets remain sluggish due to the pre-buy in 2006 and lower freight ton miles this year, resulting in truck factory shutdown days and reduced build rates throughout the industry. "Peterbilt and Kenworth have extended their holiday vacations to accommodate slower industry demand," added Plimpton.
"Construction of PACCAR's new engine plant in Mississippi is progressing well with production of engines scheduled to begin in late 2009," said Jim Cardillo, executive vice president. "The facility is being designed to have the capacity to deliver engines to Kenworth and Peterbilt as well as meet the strong demand for DAF vehicles in Europe. The strong Euro makes the shipment of engines to DAF very attractive." Craig Brewster, assistant vice president, added, "Customers are achieving good performance with the 2007 emission compliant engines. Looking ahead to the 2010 emission regulations, it is possible that the industry may experience a more balanced purchase cycle in the 2009-2010 time period."