Paccar closes 2013 with ‘record’ revenues, 28% market share

Jason Cannon

January 31, 2014

Paccar reported record annual revenues of $17.12 billion and net income of $1.17 billion for 2013 Friday, achieving the third best annual net profit in the company’s history and the 75th consecutive year of net income.

“Paccar’s financial results reflect the company’s premium-quality products and services, improved European truck deliveries, excellent aftermarket parts revenues and record PACCAR Financial Services business,” says Mark Pigott, chairman and chief executive officer. “I am very proud of our 22,000 employees who have delivered outstanding performance to our shareholders and customers.”

Last year the company launched a new range of vocational trucks – the Kenworth T880, the Peterbilt Model 567 and the DAF CF and LF Euro 6 models – and expanded its family of engines with the introduction of higher horsepower ratings for the Paccar MX-13 engine and the new Paccar MX-11 engine.

“PACCAR Parts extended its global network of parts distribution centers, which resulted in record annual parts revenues, and PACCAR Financial earned record annual pretax profits,” president Ron Armstrong says.

Dan Sobic, PACCAR executive vice president, says Class 8 industry retail truck sales in the U.S. and Canada were 212,000 units in 2013

“Truck demand is being driven primarily by the ongoing replacement of the aging truck population and improving housing and automotive sectors,” he says. “In 2013, Paccar achieved a Class 8 retail market share in the U.S. and Canada of 28.0 percent as customers benefited from Kenworth and Peterbilt vehicles’ exceptional styling, superior fuel efficiency and outstanding vehicle performance.”

Estimates for U.S. and Canada Class 8 truck industry retail sales in 2014 are in the range of 210,000-240,000 units, driven by vehicle replacement and some expansion of industry fleet capacity, reflecting anticipated economic growth.

Paccar’s aftermarket parts business achieved record annual revenues in 2013, driven by the company’s investment in distribution, technology and products, including the growth of PACCAR Parts’ global TRP brand targeted at all truck makes and models, trailers and buses, according to Bob Christensen, chief financial officer and Paccar executive vice president.

“Improving fleet utilization and the age of the North American truck fleet are contributing to excellent parts and service business,” says David Danforth, PACCAR Parts general manager. “Paccar’s 16 parts distribution centers support over 2,000 DAF, Kenworth and Peterbilt dealer locations to deliver industry-leading customer service.

During 2013, PACCAR completed construction of a new 280,000-square-foot distribution center in Eindhoven, the Netherlands, established a PDC in Ponta Grossa, Brasil, and doubled the warehouse space in the Lancaster, Pennsylvania, PDC.

Paccar says it has installed more than 51,000 MX-13 engines in Kenworth and Peterbilt trucks in North America since the start of production in 2010.

“In the fourth quarter of 2013, the Paccar MX-13 engine was installed in 37 percent of Kenworth and Peterbilt heavy-duty trucks,” Craig Brewster, PACCAR vice president, says.

In December 2013, PACCAR received certification from the U.S. Environmental Protection Agency for its range of proprietary engines for 2014.

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