Despite missing earnings estimates for fourth quarter 2016, CEO Ron Armstrong confirmed PACCAR’s overall financial success, reporting "excellent" annual revenues and profitability.
Washington-based PACCAR, one of the largest manufacturers of medium- and heavy-duty trucks, announced its 78th consecutive year of net income during a Tuesday conference call.
“PACCAR’s financial results reflect the company’s premium-quality products and services, increased European truck deliveries, higher truck market share and good aftermarket parts,” Armstrong said.
While the numbers are strong, they are down slightly from the previous year. The company reported $288.8 million in earnings for the fourth quarter of 2016, which is roughly 16 percent below 2015's fourth quarter earnings. Shares also decreased to 82 cents from 98 cents per share a year ago.
PACCAR said this slide reflects lower truck deliveries in North America. But, Armstrong added, he is proud of the company’s 23,000 employees, who delivered “outstanding products and services to our customers.”
According to PACCAR, the company reached fourth quarter 2016 net sales and financial service revenues of $4.07 billion compared to $4.36 billion for the same period the year before.
The trend continued for achieved revenues, PACCAR listing $17.03 billion for fourth quarter 2016. The previous year’s numbers put the company at $19.12 billion for its fourth quarter achieved revenues.
However, even with the drop, PACCAR’s latest profits and cash flow has enabled the company to invest in its core markets while expanding its presence in emerging markets.
“PACCAR is well-positioned for long-term growth with investments in new state-of-the-art DAF, Kenworth and Peterbilt vehicles, durable PACCAR engines, innovative aftermarket parts and service capabilities, factory enhancements, and truck technologies that increase vehicle fuel-efficiency and reliability,” Armstrong said.