December 6, 2005, Bellevue, Washington PACCAR Incs Board of Directors today declared an extra cash dividend in the amount of two dollars ($2.00) per share, payable on January 5, 2006, to stockholders of record at the close of business on December 19, 2005. The Board of Directors also declared a regular quarterly cash dividend in the amount of twenty-five cents ($.25) per share, payable on March 6, 2006, to stockholders of record at the close of business on February 17, 2006, according to Mark C. Pigott, PACCAR chairman and chief executive officer. PACCARs dividend yield of 4.2 percent, which combines the 2005 extra dividend and quarterly dividends at the current rate, places the company in the top 10 percent of S&P 500 companies.
For the first nine months of 2005, PACCAR reported record net income of $820.3 million ($4.73 per diluted share). PACCAR has earned a net profit for 67 consecutive years and has paid a dividend every year since 1941, noted Pigott. PACCARs technology initiatives have reinforced the premium performance of its capital goods, aftermarket parts and financial services businesses.
PACCAR has achieved a compound annual growth rate (CAGR) in earnings for the last ten years of 16 percent compared to the S&P 500s growth rate of 7 percent. Over the same period, PACCAR has earned an average annual ROE of 21.4 percent. The companys stock has outperformed the Standard & Poors 500 Index for the previous three-, five- and ten-year time periods.
PACCAR has delivered over $800 million to its stockholders in 2005 including the repurchase of five million shares and special and regular dividends. The PACCAR Board of Directors recently approved the repurchase of up to an additional five million shares of its outstanding common stock. PACCARs profit and cash flow performance have been outstanding, said Mike Tembreull, vice chairman. The repurchase programs reflect the Boards confidence in PACCARs successful global business strategy and excellent long-term growth prospects.
PACCAR is a 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 shares are traded on the Nasdaq Stock Market, symbol PCAR, and its homepage can be found at www.paccar.com.