PACCAR Announces Stock Repurchase Program
10 December 1999
PACCAR Announces Stock Repurchase Program
BELLEVUE, Wash.--Dec. 9, 1999--PACCAR's board of directors today approved company plans to purchase from time to time on the open market up to two million shares of its outstanding common stock, according to Mark C. Pigott, PACCAR chairman and chief executive officer."The repurchase of the company's stock is an excellent investment," said Pigott. "PACCAR is one of the leading technologically oriented automotive companies in the world and has demonstrated an enviable track record of growth and outstanding results for 95 years. PC Week recently recognized PACCAR as the number one company in embracing technology and the Internet in its daily business framework. The company recently formed two new divisions, Paccar.com and e-Paccar as part of a continuing strategy to maximize the profitable future impact of technology on its business. PACCAR's compounded growth rate averaged 18 percent during the last three years, and generated an annual average five percent Return on Sales and 23 percent Return on Shareholders' Equity. These financial figures are world class and are complemented by quality products, outstanding facilities and comprehensive finance and lease programs. In addition, our strong commitment to the customer is recognized globally," he said.
In September, PACCAR opened a new, world-class $85 million truck plant in Ste. Therese, Quebec, Canada, with a capacity of 20,000 medium-duty Kenworth and Peterbilt trucks annually. Overall, PACCAR has invested more than $300 million in its facilities and systems over the past several years to increase capacity and efficiency.
PACCAR was highlighted as the industry leader in both quality and technology by being selected this year as the recipient of the 1999 Society of Manufacturing Engineers' LEAD award for "innovative and leading-edge manufacturing." "Enhancing quality and innovation means ongoing investments in systems and people. It also means a commitment to improving business processes and efficiency. PACCAR's Six Sigma program, launched last year, is having a positive impact on the company's profitability," said David Hovind, president.
PACCAR recently confirmed its commitment to advanced engine technology when it became the first manufacturer in Europe to introduce its 12.6-liter Euro 3 engine, which delivers 530 horsepower while meeting emissions specifications two years before the legislation is effective. In addition, PACCAR expanded its medium-duty product line with the introduction of a new Peterbilt Model 270 and the Kenworth K300, Class 5 through 7 cab-over-engine trucks based on the highly successful DAF 45/55 Series. Other recent PACCAR product introductions include Peterbilt's new aerodynamic Class 8 Model 387, which began production in the third quarter of 1999.
PACCAR's acquisition of DAF Trucks in 1996 and purchase of Leyland Trucks in the UK in June of 1998 have enhanced the company's worldwide operations. The expansion into Europe, combined with operations in Mexico, Australia and Canada, placed PACCAR 88th on Forbes magazine's list of companies ranked according to size of revenues earned outside of the US.
For the first three quarters of 1999, PACCAR reported record sales and earnings of $6.4 billion and $403.7 million ($5.12 per diluted share), respectively. The third quarter was the 11th quarter in a row in which operating profits exceeded the comparable quarter a year earlier.
Repurchased PACCAR stock will be used for general corporate purposes, including awards of stock and grants of stock options under the company's existing compensation and benefit plans. On October 29, 1999, the company had 78,322,506 shares of common stock outstanding.
PACCAR, an $8 billion company, is a leader in the design, development and manufacture of high quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. It also provides financial services and distributes truck parts related to its principal business and manufactures industrial winches under the Braden, Gearmatic and Carco nameplates.
PACCAR's homepage can be found at www.paccar.com.