PACCAR Inc Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Financial Guidance for Fiscal Year 2018
January 30, 2018 at 08:05 am EST
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PACCAR Inc. reported consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net sales and revenues of $5,122.4 million compared to $3,767.0 million for the same period in 2016. Total income before income taxes was $604.3 million against $418.9 million a year ago. Net income was $589.2 million against $288.8 million a year ago. Net income per basic and diluted share was $1.67 against $0.82 a year ago. Adjusted net income was $415.8 million or $1.18 per diluted share.
For the year, the company reported net sales and revenues of $18,187.5 million compared to $15,846.6 million for the same period in 2016. Total Income before income taxes was $2,173.3 million against $1,130.4 million a year ago. Net income was $1,675.2 million against $521.7 million a year ago. Net income per diluted share was $4.75 against $1.48 a year ago. Net cash provided by operating activities was $2,715.8 million against $2,300.8 million a year ago. Payments for property, plant and equipment was $423.4 million against $375.2 million a year ago. Acquisitions of equipment for operating leases were $1,423.2 million against $1,589.7 million a year ago. Adjusted net income was $1,501.8 million against $1,354.7 million a year ago. Adjusted net income per diluted share was $4.26 against $3.85 a year ago.
The company provided financial guidance for fiscal year 2018. For the year, the company estimate that effective tax rate will be 23% to 25% compared to an effective tax rate of approximately 31% prior to the new law. The company plans to increase research and development spending to a range of $280 million to $310 million and capital expenditures to a range of $425 million to $475 million.
Paccar, Inc. specializes in the design, manufacturing and marketing of merchandise transportation vehicles. Net sales break down as follows:
- sale of trucks (74.6%): 185,900 vehicles sold in 2022 (DAF, Kenworth and Peterbilt brands), and distributed by country in the United States and Canada (95,600 units), Europe (62,400) and other (27,900; primarily Mexico and Australia) ;
- sale of accessories, spare parts and industrial winches (20%): Braden, Gearmatic and Carco brands);
- sales financing services (5.2%): standard financing and lease financing;
- other (0.2%).
Net sales are distributed geographically as follows: the United States (53.3%), Europe (26%) and other (20.7%).
PACCAR Inc Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Financial Guidance for Fiscal Year 2018