R. Preston Feight
Chief Executive Officer at PACCAR
Hey, good morning. Harrie Schippers, Michael Barkley and I will update you on a very good fourth quarter and full-year 2021 results as well as other business highlights. First, I really appreciate our outstanding PACCAR employees. They deliver the highest quality trucks and transportation solutions to our customers and focus on the safety and health of each other. They are truly an impressive team.
In 2021, PACCAR achieved annual revenues of $23.5 billion and very good net income of $1.85 billion. PACCAR's financial performance benefited from record results in our Parts and Financial Services divisions. PACCAR's achieved 83 consecutive years of net income and has paid a dividend every year since 1941. In 2021, PACCAR declared dividends of $2.84 a share. PACCAR's fourth quarter revenues were $6.7 billion, and fourth quarter net income increased from the prior year by 26% to $511 million. PACCAR Parts achieved record fourth quarter revenues of $1.3 billion and record pre-tax profits of $306 million, which was a 38% increase compared to the same period last year.
PACCAR delivered 47,600 trucks during the fourth quarter, 45% higher than the third quarter. This included delivering 7,000 trucks that were awaiting components. In the first quarter of 2022, deliveries are forecast to be in the range of 41,000 to 45,000, a number that is limited by the global supply of semiconductors. In 2021, U.S. and Canadian Class 8 truck retail sales were 250,000 units. In 2022, the U.S. economy and industrial production are projected to expand by about 4%. The 2022 U.S. and Canadian Class 8 truck market deliveries are forecast to increase to a range of 250,000 to 290,000 vehicles as the global supply chain gradually improves throughout the year.
European above 16-tonne truck registrations were 278,000 units in 2021. In 2022, the European economies are projected to continue growing, and we expect the above 16-tonne truck registrations to be in a range of 260,000 to 300,000 trucks. In 2021, the South American above 16-tonne truck industry registrations were 127,000. And in 2022, the South American market is expected to be in the range of 125,000 to 135,000. The growing global economies, robust freight activity, and strong customer demand for DAF, Peterbilt, and Kenworth trucks has resulted in a substantial order backlog in all markets.
Truck and Parts gross margins were 11.4% in the fourth quarter, reflecting higher labor and materials costs associated with the completion of off-line trucks and the resulting increased mix of Trucks versus Parts. We estimate first quarter Truck and Parts gross margins to increase and be in the range of 13% to 13.5% as we ramp up production of our new products and realize production efficiencies.
In 2021, PACCAR introduced exciting, new heavy and medium-duty Kenworth, Peterbilt and DAF trucks, which are proving to be very successful in the market. PACCAR also delivered many important technology and innovation milestones, such as a strategic partnership to develop and sell autonomous trucks, production of zero-emissions vehicles, and we launched PACCAR's proprietary global connected service offerings.
The new DAF lineup launched in 2021 earned the prestigious International Truck of the Year Award and the innovative DAF XF hydrogen internal combustion technology vehicle won the Truck Innovation Award. Kenworth and Peterbilt each -- Kenworth and Peterbilt earned five manufacturing leadership awards from the National Association of Manufacturers and DAF Brazil was awarded the Truck Brand of the Year for the fourth time. Last year, PACCAR was again recognized as a global leader in environmental practices by the reporting firm, CDP. PACCAR achieved an elite A rating, which places the company in the top 200 of over 13,000 reporting companies. In 2021, PACCAR was recognized as a Top Place for Women to Work by the Women in Trucking organization for the fourth consecutive year. The truck market is strong and demand is high for PACCAR's excellent new trucks and transportation solutions. We look forward to 2022 being a very good year.
Harrie Schippers will now provide an update on PACCAR Parts, PACCAR Financial Services, and other business highlights. Harrie?