PACCAR announced that third-quarter earnings were $299 million ($0.82 per diluted share), down 1% from earnings of $302.3 million ($0.81 per diluted share) in the third quarter last year.
Third-quarter net sales and financial services revenues were $4 billion. Net sales and financial services revenues for the first nine months of 2008 were $12.06 billion. PACCAR reported nine-month net income of $904.8 million ($2.47 per diluted share), compared to $966.2 million ($2.58 per diluted share) in 2007.
“In these turbulent times, PACCAR is experiencing lower truck demand in Europe, Mexico and Australia, and continued softness in the U.S. and Canada, which will reduce financial results in the fourth quarter of 2008 and into 2009,” said Mark C. Pigott, chairman and chief executive officer. “As in previous cyclical downturns, the company is rigorously aligning operating costs with market conditions while selectively investing in capital projects and new products that will generate excellent customer benefits. PACCAR’s products, manufacturing facilities and distribution centers are the best in our 103-year history and position the company strongly when the industry returns to a normal vehicle replacement cycle.”
“Declining housing starts and auto production have impacted U.S. and Canadian Class 8 truck sales throughout 2008,” said Dan Sobic, PACCAR executive vice president. “Industry retail sales are expected to be approximately 150,000 vehicles this year. Industry retail sales are projected to improve slightly in the second half of 2009 and are expected to be in the range of 170,000-210,000 as fleets replace vehicles after several years of lower purchases. Several of our major customers are reporting increased third quarter income due to good freight traffic and lower fuel prices. Kenworth and Peterbilt continue to achieve a strong share of industry sales due to their superior quality, reliability and industry-leading resale value.”
PACCAR International delivers Kenworth, Peterbilt and DAF vehicles to customers in over 100 countries.
“Despite the current global economic environment, PACCAR is experiencing good demand from Latin America and Middle East customers, particularly for Kenworth off-highway and oil well servicing vehicles,” said Claire Hargrave, PACCAR International general manager.
The PACCAR Board of Directors approved a fourth quarter regular quarterly cash dividend in the amount of $.18 (eighteen cents), payable on December 5, 2008, for shareholders of record on November 18, 2008. Over the last five years PACCAR has increased its regular quarterly dividend by an average of 23 percent per year and has paid a dividend every year since 1941. PACCAR purchased $29.8 million of its shares in the third quarter.