PACCAR Announces Extra Cash Dividend, Regular Quarterly Dividend and Share Repurchase
December 5, 2006, Bellevue, Washington PACCAR Incs Board of Directors today declared an extra cash dividend in the amount of two dollars ($2.00) per share, payable on January 5, 2007, to stockholders of record at the close of business on December 18, 2006. The Board of Directors also declared a regular quarterly cash dividend in the amount of twenty cents ($.20) per share, payable on March 5, 2007, to stockholders of record at the close of business on February 16, 2007, according to Mark C. Pigott, PACCAR chairman and chief executive officer. PACCARs dividend yield of 4.3 percent, which combines the 2006 extra dividend and regular quarterly dividends, places the company in the top 5 percent of S&P 500 companies. PACCARs regular quarterly dividend has increased an average of 18 percent per year during the last decade.
The PACCAR Board of Directors today approved the repurchase of $300 million of its outstanding common stock. PACCAR has repurchased ten million of its common shares during the last two years. PACCARs strong net profits and excellent cash flow make the companys shares an attractive long-term investment, said Mike Tembreull, vice chairman. The stock repurchase program reflects the Boards confidence in PACCARs successful global business growth.
For the first nine months of 2006, PACCAR reported record net income of $1.12 billion ($4.43 per diluted share). PACCAR has earned a net profit for 68 consecutive years and has paid a dividend every year since 1941, noted Tembreull. PACCAR has established itself as a global leader in financial services, aftermarket customer support, information technology and lean manufacturing.
PACCAR has achieved a compound annual growth rate (CAGR) in earnings for the last ten years of 16.3 percent compared to the S&P 500s growth rate of 7.5 percent. PACCAR has delivered nearly $850 million to its stockholders in 2006 from the repurchase of 4.5 million shares plus special and regular dividends, said Ron Armstrong, vice president/controller. The companys stock has outperformed the Standard & Poors 500 Index for the previous one-, three-, five- and ten-year time periods.
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.