PACCAR reported record annual revenues and profits in 2019 and has earned an impressive 81 consecutive years of net income,” said Preston Feight, chief executive officer. “PACCAR’s vibrant results reflect the company’s premium-quality products and services, strong global truck markets, record truck production and record aftermarket parts sales. I am very proud of our employees who have delivered outstanding products and services to our customers.” PACCAR delivered a total shareholder return of 45% compared to the S&P 500 Index total return of 31% in 2019.
“Freight tonnage grew 3.3% percent in the U.S. in 2019. The North American and European economies are projected to continue growing in 2020. We expect 2020 to be another strong year for PACCAR,” added Feight.
PACCAR achieved quarterly revenues of $6.12 billion in the fourth quarter 2019, compared to the $6.28 billion reported in the same period in 2018. The company earned $531.3 million ($1.53 per diluted share) in the fourth quarter of 2019. PACCAR earned $578.1 million ($1.65 per diluted share) in the fourth quarter of 2018. PACCAR achieved record revenues of $25.60 billion in 2019, a 9% increase compared to revenues of $23.50 billion in 2018. The company earned a record $2.39 billion ($6.87 per diluted share) in 2019, 9% higher than the $2.20 billion ($6.24 per diluted share) earned in 2018.
Increased Dividends and Share Repurchases
PACCAR declared cash dividends of $3.58 per share during 2019, a 16% increase compared to the $3.09 per share declared in 2018. Dividends declared in 2019 included a $2.30 per share extra cash dividend paid in January 2020. PACCAR has 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 Mark Pigott, executive chairman.
PACCAR repurchased 1.68 million of its common shares for $110.2 million during 2019. PACCAR’s Board of Directors approved the repurchase of $500 million of its common stock in December 2018. Stock repurchases of $430.5 million are remaining under the authorization.
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SOURCE: PACCAR
