October 29, 2007, Bellevue, Washington The PACCAR Board of Directors today approved the repurchase of $300 million of its outstanding common stock. PACCAR has invested $978 million to repurchase 27.4 million shares and paid $1.73 billion in dividends during the last three 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 2007, PACCAR reported very good net income of $966.2 million ($2.58 per diluted share) and achieved 8.4 percent after-tax return on revenues. "PACCAR has earned a net profit for 69 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 earnings per share growth rate (CAGR) for the last ten years of 22.8 percent compared to the S&P 500s rate of 7.7 percent. "PACCAR will return over $1 billion to its stockholders in 2007 from the repurchase of 5.7 million shares plus regular and special dividends," said Ron Armstrong, vice president. 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.