CAPTION; PACCAR Soars to Record Revenues and Profits; Company Increases Regular Quarterly Dividend.BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash. -- Please replace the caption with the accompanying corrected caption. The release reads: PACCAR PACCAR Pacific Car and Foundry Company (former railroad car manufacturer now parent corp of Peterbilt & Kenworth Truck) SOARS SOARS Significant Opportunities in Atmospheric Research and Science SOARS Significant Opportunities in Atmospheric Research & Science SOARS Significant Opportunities in Atmospheric and Related Sciences SOARS Shuttle Operation Automated Reporting System TO RECORD REVENUES AND PROFITS; COMPANY INCREASES REGULAR QUARTERLY DIVIDEND "PACCAR (Nasdaq:PCAR PCAR Pennsylvania Coalition Against Rape PCAR Post Contract Award Review ) achieved record revenues and net income for the first quarter of 2006," said Mark C. Pigott Pigott is a surname, and may refer to:
, chairman and chief executive officer. "PACCAR's diversified diversified (di·verˑ·s businesses worldwide contributed to the stellar results this quarter. PACCAR Parts, PACCAR Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Information Technology and Truck Manufacturing made strong contributions to the record net income. PACCAR's sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and export markets are
performing well due to the company's industry-leading quality
products and services. PACCAR's focus on designing innovative
products, utilizing advanced technology and delivering superior customer
support has defined the company for over 100 years."PACCAR earned $342.0 million ($2.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) for the first quarter 2006, an increase of 25 percent compared to the $274.0 million ($1.56 per diluted share) earned in the first quarter of 2005. First quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and financial services revenues were $3.85 billion versus $3.33 billion for the first quarter of last year. The company's after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. return on consolidated revenues (ROR ROR Ruby on Rails ROR Rate Of Return ROR Reach Out and Read (national pediatric literacy program) ROR Rotate Right ROR Revolutions On Request (artist group; Finland) ROR Rise of Rome ) was a record 8.9 percent in the first quarter of 2006 compared to 8.2 percent in the first quarter of 2005. "The outstanding return on revenues continues to demonstrate that PACCAR is one of the leading industrial and financial services companies worldwide," said Mike Tembreull, vice chairman. Quarterly Dividend Increased 20 Percent The PACCAR Board of Directors approved an increase to the regular quarterly dividend from $.25 (twenty-five cents) per share to $.30 (thirty cents) per share, effective with the dividend payment of June 5, 2006, for shareholders of record May 18, 2006. PACCAR has raised its regular quarterly dividend nine times in the last ten years, an increase of 435 percent over the decade. PACCAR has paid a quarterly dividend every year since 1941. Global Technology Leader In a White House ceremony on February 13, 2006 President George W. Bush presented PACCAR with the National Medal of Technology, the nation's highest award for innovation. PACCAR earned the award for its decades of industry leadership in developing aerodynamic, lightweight commercial vehicles which have dramatically reduced fuel consumption, increased the productivity of freight transportation and contributed to the strength of the nation's economy. "PACCAR's technology leadership is a result of the innovation and creativity of our 22,000 employees," said Pigott. "Innovation is one of the company's defining characteristics and enables PACCAR to be a leader in every field in which it competes." PACCAR recently announced a number of exciting new initiatives which will continue to enhance the exceptional value delivered to its customers: --PACCAR Hybrid Power Hybrid Power in this context describes the combination of a power producer and the means to store that power in an energy storage medium. In power engineering, the term 'hybrid' does not mean a "method," such as the popular use of hybrid to mean a vehicle like the Toyota will be installed in selected vehicles by 2008 and the company has established a goal of 30 percent fuel efficiency improvement for specific customer applications over the next seven years. --PACCAR's industry leading GPS Navigation See GPS. system was introduced as standard on most models and will include touch screen menu control and programmable MP-3 capability. --DAF Trucks in Europe began production of its new XF105 flagship model powered by the new, fuel-efficient PACCAR MX 12.9-liter engine. --An electronic sales and finance office was added to PACCAR's Electronic Dealerships, where the company showcases advanced technology to support its 1,800 independent dealer locations. Over 11,000 dealers, customers, suppliers and employees have toured the Technology Centers. --Kenworth Truck Company unveiled its new model T660 with enhanced aerodynamics aerodynamics, study of gases in motion. As the principal application of aerodynamics is the design of aircraft, air is the gas with which the science is most concerned. , superior forward lighting and increased driver comfort. Financial Highlights - First Quarter 2006 PACCAR reported these key financial highlights for the first quarter of 2006: --Record quarterly revenues of $3.85 billion. --Record quarterly net income of $342.0 million. --Excellent financial services pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profits of $54.8 million. --An annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on beginning equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) of 35.1 percent. --Manufacturing SG&A expense to sales reached a record low 3.0 percent. --Shareholder's equity increased to over $4 billion. PACCAR's global operating divisions sell into 100 countries and the company's products have earned a reputation for durability du·ra·ble adj. 1. Capable of withstanding wear and tear or decay: a durable fabric. 2. and excellent life-cycle costs. PACCAR's revenues from outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. during the first quarter were 49 percent of total revenues. Revenues at PACCAR Parts, the company's aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. parts division, continued to increase in the first quarter as more dealers and customers use the company's proprietary inventory management software systems. PACCAR's aftermarket parts revenues were $1.7 billion in 2005 and the compound annual growth rate (CAGR CAGR See: Compound Annual Growth Rate ) in parts sales has been nearly 14 percent over the past decade. Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. During the first quarter of 2006, PACCAR repurchased 2.5 million of its common shares ($175 million invested) under a five million share program announced on October 25, 2005. "The share repurchase programs reinforce the fact that PACCAR is an excellent long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investment. The company's goal is that its market valuation ratios be equal to other premier global industrial companies," noted Tembreull. PACCAR has returned over $1.4 billion to shareholders through dividends and share repurchases during the past 15 months. Industrial Ranking Increases Significantly In its April 17, 2006 edition, Fortune magazine ranked PACCAR as the 157th largest company in the Fortune 500 based on revenue during 2005, up from 188th place in 2004. PACCAR was one of the leading companies for return on revenue of the 28 OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and companies included in the motor vehicle and parts sector. Over the last ten years, PACCAR has ranked in the top 20 percent for average annual EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. growth and the top 5 percent in total return to investors for all companies in the Fortune 500. Capital Investment Increases Companywide "PACCAR is earning record income due to the benefits of ongoing capital investments throughout the company," said Tom Plimpton, president. "In order to further enhance its industry leadership, PACCAR will increase capital and expense investment by constructing new facilities, accelerating product development, and growing financial services and technology platforms. Examples of these investments are a new engine test center in Europe, 20 percent increase in Kenworth manufacturing capacity, new parts distribution centers, new aerodynamic and hybrid vehicles This is a list of hybrid vehicles in chronological order of production: Early designs
Strong Growth of Global Commercial Vehicle Markets "The global commercial vehicle industry is a growth business which continues to benefit from strong demand," stated Jim Cardillo, senior vice president. "Freight activity is robust and trucking company profits are at record levels," added Cardillo. "U.S. and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Class 8 industry truck retail sales are projected to be 290,000-310,000 units during 2006, an increase of approximately 5 percent over 2005 levels. The Class 6-7 industry truck market in the U.S. and Canada for 2006 is expected to increase slightly to 100,000-110,000 units." "Over the last several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Western European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. truck market has increased faster than Euro-zone GDP GDP (guanosine diphosphate): see guanine. due to a growing transport sector and an expanding European economic trading block," commented Aad Goudriaan, DAF Trucks DAF Trucks NV is a Dutch truck manufacturing company and a division of PACCAR. Its headquarters and main plant are in Eindhoven. Cabs and axle assemblies are produced at its Westerlo plant in Belgium. president. "For 2006, Western European industry truck deliveries above 15 tonnes are forecast to be 245,000-265,000 vehicles, approximately equal to last year. DAF Trucks has increased its market share in each of the past six years, with an above 15 tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. market share at a record 13.7 percent in 2005. The industry 6-15 tonne truck market in 2006 should be approximately 75,000-80,000 units." Financial Services Achieves Excellent Quarterly Earnings PACCAR's financial services segment is comprised of a portfolio of over 145,000 trucks and trailers, with total assets in excess of $8.6 billion. Included in this segment is PACCAR Leasing, a major full-service truck leasing company in North America, with a portfolio of more than 23,000 vehicles. Quarterly pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. of $54.8 million increased 16 percent versus $47.3 million earned in the first quarter of 2005 due to higher asset levels and margins and continued low credit losses. First quarter revenues of $212.5 million increased 24 percent compared to $171.4 million in the same quarter of 2005. "PACCAR Financial Services (PFS PFS, n post facilitation stretch; therapeutic approach utilized during proprioceptive neuromuscular facilitation in which the patient begins the stretch midway between the fully relaxed and fully stretched position and uses maximum level of effort to ) companies offer an extensive product line-up including finance, lease and insurance products in 15 countries located on three continents," noted Ken Gangl, senior vice president. "PACCAR delivers superior customer service by focusing on transportation finance, leasing and insurance packages for buyers of premium DAF, Kenworth and Peterbilt products. The company's excellent AA- credit rating allows PACCAR's finance and leasing companies to offer competitive financing for its customers." "As a growing part of the PFS group of companies, PACCAR Leasing (PacLease) is generating excellent results as the primary leasing company in the markets which specify Kenworth and Peterbilt products," added Bob Southern, PacLease president. "The PacLease network has grown to 247 franchised and company-owned locations in Canada, the United States and Mexico." PACCAR is a $14 billion global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. It also provides financial services and information technology and distributes truck parts related to its principal business. PACCAR will hold a conference call with securities analysts to discuss first quarter 2006 earnings on April 25, 2006, at 8:00 a.m. Pacific time. Interested parties may listen to the call by selecting "Live Webcast" at PACCAR's homepage. The Webcast will be available on a recorded basis through May 2, 2006. PACCAR shares are traded on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , symbol PCAR, and its homepage can be found at www.paccar.com. This release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR's filings with the Securities and Exchange Commission.
PACCAR Inc
SUMMARY INCOME STATEMENTS
(in millions(a))
Three Months Ended March 31 2006 2005
----------------------------------------------------------------------
Truck and Other:
Net sales and revenues $3,639.2 $3,154.6
Cost of sales and revenues 3,098.9 2,689.7
Selling, general and administrative 109.6 107.1
Interest and other, net .4 .8
----------------------------------------------------------------------
Truck and Other Income Before Income Taxes 430.3 357.0
Financial Services:
Revenues 212.5 171.4
Interest and other 127.9 96.3
Selling, general and administrative 23.2 21.5
Provision for losses on receivables 6.6 6.3
--------------------------------------------------- --------- --------
Financial Services Income Before Income Taxes 54.8 47.3
Investment Income 15.6 11.8
--------------------------------------------------- --------- --------
Total Income Before Income Taxes 500.7 416.1
Income Taxes (b) 158.7 142.1
--------------------------------------------------- --------- --------
Net Income $ 342.0 $ 274.0
=================================================== ========= ========
Net Income Per Share:
Basic $ 2.03 $ 1.57
=================================================== ========= ========
Diluted $ 2.02 $ 1.56
=================================================== ========= ========
Weighted Average Shares Outstanding:
Basic 168.2 174.0
=================================================== ========= ========
Diluted 169.1 175.1
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Dividends declared per share $ .25 $ .20
=================================================== ========= ========
(a) Except per share amounts.
(b) Income taxes for the three months ended March 31, 2006 were
reduced $6.0 for a tax settlement. Excluding this settlement, the
effective tax rate for the quarter was 32.9%.
PACCAR Inc
CONDENSED BALANCE SHEETS
(in millions)
March 31 December 31
2006 2005
----------------------------------------------------------------------
ASSETS
Truck and Other:
Cash and marketable debt securities $ 2,085.3 $ 2,215.8
Trade and other receivables, net 827.4 582.2
Inventories 502.5 495.5
Property, plant and equipment, net 1,162.1 1,143.0
Equipment on operating leases, taxes and other 944.7 923.0
Financial Services Assets 8,620.4 8,355.9
----------------------------------------------------------------------
$ 14,142.4 $ 13,715.4
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck and Other:
Accounts payable, deferred revenues and other $ 2,945.2 $ 2,589.3
Dividend payable 338.7
Term debt 28.9 28.8
Financial Services Liabilities 7,092.6 6,857.5
STOCKHOLDERS' EQUITY 4,075.7 3,901.1
----------------------------------------------------------------------
$ 14,142.4 $ 13,715.4
======================================================================
Common Shares Outstanding 166.7 168.9
----------------------------------------------------------------------
GEOGRAPHIC REVENUE DATA
Three Months Ended March 31 2006 2005
----------------------------------------------------------------------
United States $ 1,974.6 $ 1,641.6
Europe 1,115.2 1,038.5
Other 761.9 645.9
----------------------------------------------------------------------
$ 3,851.7 $ 3,326.0
======================================================================
PACCAR Inc
CONDENSED CASH FLOW STATEMENT
(in millions of dollars)
Three Months Ended March 31 2006 2005
----------------------------------------------------------------------
OPERATING ACTIVITIES:
Net income $ 342.0 $ 274.0
Depreciation and amortization:
Property, plant and equipment 37.0 33.0
Equipment on operating leases and other 63.2 58.5
Net change in wholesale receivables on new trucks (34.5) (138.5)
Net change in sales-type finance leases and dealer
direct loans on new trucks 13.9 16.4
All other operating activities 57.8 (59.3)
----------------------------------------------------------------------
Net Cash Provided by Operating Activities 479.4 184.1
INVESTING ACTIVITIES:
Acquisition of property, plant and equipment (43.4) (56.9)
Acquisition of equipment for operating leases (118.0) (92.9)
Net change in financial services receivables (120.7) (162.4)
Net change in marketable securities (173.4) 153.2
All other investing activities 38.8 22.0
----------------------------------------------------------------------
Net Cash Used in Investing Activities (416.7) (137.0)
FINANCING ACTIVITIES:
Cash dividends paid (380.8) (382.6)
Purchase of treasury stock (185.8) (26.9)
Stock option transactions 14.3 13.9
Net change in financial services debt 167.2 207.6
----------------------------------------------------------------------
Net Cash Used in Financing Activities (385.1) (188.0)
Effect of exchange rate changes on cash 13.7 (44.4)
----------------------------------------------------------------------
Net Decrease in Cash and Cash Equivalents (308.7) (185.3)
Cash and cash equivalents at beginning of period 1,698.9 1,614.7
----------------------------------------------------------------------
Cash and cash equivalents at end of period $1,390.2 $1,429.4
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