September 11, 2007, Bellevue, Washington PACCARs Board of Directors today declared a 50 percent stock dividend of the Companys common stock (i.e., one additional share for each two shares held). The new shares will be issued on October 9, 2007, to stockholders of record at the close of business on September 25, 2007. The Companys stock has outperformed the Standard & Poors 500 Index for the previous one-, three-, five- and ten-year time periods.
"PACCAR has generated excellent shareholder returns due to its focus on premium-quality products and processes, innovative use of technology, strong global diversification and continued expansion of its financial services and aftermarket parts businesses," said Mark Pigott, chairman and chief executive officer. The Board of Directors also declared a quarterly cash dividend in the amount of eighteen cents ($.18) on each newly-split share, payable on December 5, 2007, to stockholders of record at the close of business on November 19, 2007. PACCAR has increased its regular quarterly dividend 35 percent this year and has averaged a regular dividend increase of 20 percent per year during the last ten years.
During the third quarter of 2007, PACCAR invested $249.7 million to repurchase 3.05 million of its common shares, which completed the $300 million share repurchase authorization from its Board of Directors. "The repurchase program reflects the Boards confidence in PACCARs successful global business strategy and excellent long-term profitable growth," said Mike Tembreull, vice chairman.
The Environmental Protection Agency (EPA) recently awarded Kenworths T660 and T2000 and Peterbilts 386 and 387 models with the SmartWay® designation, in recognition of their 10-20 percent fuel savings and lower greenhouse gas emissions. "PACCAR is a global environmental leader and is committed to producing advanced aerodynamic and fuel-efficient vehicles," said Dan Sobic, senior vice president.
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 listed on NASDAQ Global Select Market, symbol PCAR, and its homepage can be found at www.paccar.com.