PACCAR’s consolidated net sales and financial service revenues in 2006 were a record $16.45 billion, an increase of 17 percent from $14.06 billion in 2005.
Record net income during 2006 of $1.496 billion ($5.95 per diluted share) increased 32 percent versus the $1.133 billion ($4.37 per diluted share) earned during 2005. Included in PACCAR’s net income for 2005 was a onetime charge of $64 million ($0.25 per diluted share) for income taxes associated with the repatriation of $1.5 billion of foreign earnings. Cash dividends of $2.77 per share were declared during 2006, including a special dividend of $2.00.
During the last decade, PACCAR’s dividend has increased 640 percent and the company’s dividend yield of 4.3 percent places it in the top 5 percent of S&P 500 companies.
PACCAR’s net earnings increased 22 percent to $380.5 million ($1.52 per diluted share) for the fourth quarter 2006 compared to the $312.9 million ($1.22 per diluted share) earned in the fourth quarter of 2005. Fourth quarter net sales and financial service revenues were a record $4.23 billion, 16 percent higher than the $3.64 billion reported for the comparable period in 2005. The company’s 2006 fourth quarter after-tax return on revenue (ROR) was 9.0 percent. The fourth quarter is the twentieth consecutive quarter of year-over-year earnings growth.
During 2006 PACCAR achieved a number of milestones, including:
- PACCAR delivered a record 166,800 commercial vehicles worldwide.
- PACCAR Financial Services increased its portfolio to 158,300 trucks and trailers, up 9.6 percent.
- The DAF XF105 was recognized as the International Truck of the Year 2007 - the third time in ten years DAF’s premium products have earned this distinction.
- For the second year in a row, Kenworth Truck Company earned three J.D. Power awards ranking highest in customer satisfaction among Class 8 truck owners in the Over the Road, Pickup and Delivery, and Dealer Service categories.
- Peterbilt Motors ranked highest in customer satisfaction among Conventional Medium-Duty Trucks in the 2006 J.D. Power Medium-Duty Truck Customer Satisfaction Study.
- PACCAR and Formosa Plastics Group began assembling DAF vehicles in Taiwan, an important step in the company’s expansion into Asia.
- PACCAR announced it is opening a new sales and sourcing office in Shanghai, China. The office will focus on purchasing production parts for worldwide operations, as well as the sale of PACCAR powertrain components to customers in Asia.