Profits 101: Paccar breaks sales records

BELLEVUE, Wash. — Paccar reported the highest revenues and net income in the company’s entire 101-year history for the first half of 2006, said Mark C. Pigott, chairman and chief executive officer.

Paccar earnings increased 53 percent to $369.9 million for the second quarter of 2006 compared to $241.5 million earned in the second quarter last year.

Second quarter net sales and financial services revenues were a record $4.17 billion, 17 percent higher than the $3.56 billion reported for the comparable period in 2005.

For the first six months of 2006, Paccar reported record net income of $711.9 million — a 38 percent increase compared to $515.5 million in 2005.

Net sales and financial services revenues for the first six months of 2006 increased 17 percent to a record $8.02 billion compared to $6.88 billion last year. Included in Paccar’s 2005 second quarter and first half net income was a one-time charge of $64 million for income taxes associated with the repatriation of $1.5 billion of foreign earnings.

“Paccar’s superb financial performance for the first half of 2006 is due to worldwide economic growth and the benefits of accelerated new product introductions, complemented by excellent financial services and aftermarket parts programs, which have resulted in market share gains,” Pigott said.

“Major capital investments in all facets of Paccar’s business are delivering 5-7 percent annual productivity growth, enhanced quality and industry-leading logistics capability. Paccar continues to diversify its business platform and is delivering increased revenues and profits from its worldwide finance, leasing, aftermarket parts and information technology businesses.”