PACCAR Achieves Excellent Financial Performance
PACCAR reported excellent financial performance in the first quarter of 2024, with record revenues and net income. The company achieved quarterly revenues of $8.74 billion, compared to $8.47 billion in the same period last year. Net income was $1.20 billion in the first quarter of 2024. PACCAR's strong operating margins are attributed to investments in new truck models, advanced manufacturing, and technology-enabled aftermarket solutions.
Highlights of PACCAR's financial results include consolidated revenues of $8.74 billion, record PACCAR Parts revenue of $1.68 billion, and PACCAR Financial Services pretax income of $113.9 million. The company also announced capital investments in new products and technologies, including a battery cell manufacturing joint venture.
PACCAR reported excellent financial performance in the first quarter of 2024, with record revenues and net income.
The company achieved quarterly revenues of $8.74 billion, compared to $8.47 billion in the same period last year.
PACCAR's strong operating margins are attributed to investments in new truck models, advanced manufacturing, and technology-enabled aftermarket solutions.
Highlights of PACCAR's financial results include consolidated revenues of $8.74 billion, record PACCAR Parts revenue of $1.68 billion, and PACCAR Financial Services pretax income of $113.9 million.
The company announced capital investments in new products and technologies, including a battery cell manufacturing joint venture.
- None.
Insights
The reported net income surge for PACCAR from
Investors should note the increase in net income with respect to the modest revenue growth from
An increased market share in key regions, as observed with DAF Brasil's growth from
The estimated range of North American Class 8 truck industry retail sales and increased infrastructure spending signal a robust demand environment for PACCAR's premium vocational trucks. The company's class 8 market share growth, albeit by less than a percentage point, showcases competitive resilience and an ability to capitalize on industry trends. Strategic market players and investors may interpret this as a favorable sign of customer loyalty and product differentiation in a competitive landscape.
Furthermore, the company's focus on technological innovations such as advanced powertrains and connected systems is in alignment with industry shifts towards more fuel-efficient and intelligent vehicles. The anticipation surrounding the next-generation powertrains could position PACCAR as a frontrunner in the evolution of vehicle technology, which may be reflected in sustained aftermarket parts growth and an enhanced reputation for innovation.
The construction of a new parts distribution center in Germany is a strategic move to fortify PACCAR's aftermarket service capabilities in Europe's largest truck market. This expansion could significantly enhance supply chain efficiency and customer satisfaction levels, potentially leading to reinforced market presence in Europe.
In addition, PACCAR's investment in a joint venture for advanced battery cell manufacturing signals a strategic pivot towards electric powertrain technologies. Given the timeline that production is slated to start in 2027, this long-term initiative reflects PACCAR's commitment to addressing future industry demands for sustainable transportation solutions. The market impact of such ventures may not be immediate but indicates a forward-looking strategy that could yield significant competitive advantages in the nascent electric truck market segment.
Peterbilt 567 Truck (Photo: Business Wire)
PACCAR achieved quarterly revenues of
Feight added, “PACCAR’s long-term investments in new truck models, advanced manufacturing and technology-enabled aftermarket solutions are contributing to PACCAR’s strong operating margins. Customers’ operations benefit from the superior quality and fuel economy of DAF, Peterbilt and Kenworth vehicles. PACCAR is developing next-generation powertrains and connected systems, which will drive aftermarket parts growth, as well as investing in production capacity.”
Highlights – First Quarter 2024
Highlights of PACCAR’s financial results during the first quarter of 2024 include:
-
Consolidated revenues of
$8.74 billion -
Net income of
$1.20 billion -
Record PACCAR Parts revenue of
$1.68 billion -
Record PACCAR Parts pretax income of
$455.8 million -
PACCAR Financial Services pretax income of
$113.9 million -
Cash provided by operations of
$1.47 billion -
Capital investment of
$164.3 million $105.5 million -
Stockholders’ equity of
$16.87 billion
Global Truck Markets
“North American truck demand is benefiting from increased infrastructure spending,” said Mike Dozier, PACCAR executive vice president. “Kenworth and Peterbilt’s industry-leading vocational trucks provide customers with the premium quality and durability required in rigorous construction applications.”
“The aerodynamic and innovative DAF XD, XF, XG and XG+ trucks offer best-in-class driver comfort and fuel efficiency to customers,” said Harald Seidel, DAF president. “DAF was honored as the Fleet Manufacturer of the Year and the DAF XD truck was named Best Rigid Truck at the prestigious Fleet News Awards in
The South American above 16-tonne truck market is projected to be in the range of 105,000-115,000 trucks in 2024. DAF Brasil achieved a record
PACCAR Parts Achieves Record Revenues and Profits
PACCAR Parts achieved record quarterly pre-tax income of
PACCAR Parts’ 19 global parts distribution centers support more than 2,300 DAF, Kenworth and Peterbilt dealer locations. PACCAR is constructing a new, 240,000 square-foot PACCAR PDC to be opened in Massbach,
PACCAR Financial Services Achieves Good Quarterly Profits
PACCAR Financial Services (PFS) achieved pretax income of
PFS has a portfolio of 228,000 trucks and trailers, with total assets of
Capital and R&D Investments in Products, Technologies and Facilities
PACCAR’s consistent long-term profits, strong balance sheet, and focus on quality, technology and innovation have enabled the company to invest
PACCAR’s advanced battery cell manufacturing joint venture is expected to begin construction of its 21-gigawatt hour (GWh) factory in
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. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
PACCAR will hold a conference call with securities analysts to discuss first quarter earnings on April 30, 2024, at 8:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q1 Earnings Webcast” at PACCAR’s homepage. The webcast will be available on a recorded basis through May 7, 2024. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR. Its homepage is www.paccar.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.
1 See attached supplementary information on non-GAAP financial measures.
| PACCAR Inc | ||||||||
| SUMMARY STATEMENTS OF OPERATIONS | ||||||||
| (in millions except per share amounts) | ||||||||
Three Months Ended |
||||||||
March 31 |
||||||||
2024 |
2023 |
|||||||
| Truck, Parts and Other: | ||||||||
| Net sales and revenues | $ |
8,235.0 |
|
$ |
8,050.1 |
|||
| Cost of sales and revenues |
|
6,673.8 |
|
|
6,493.1 |
|||
| Research and development |
|
105.5 |
|
|
97.2 |
|||
| Selling, general and administrative |
|
147.6 |
|
|
159.8 |
|||
| Interest and other (income) expenses, net |
|
(27.0 |
) |
|
578.8 |
(1) |
||
| Truck, Parts and Other Income Before Income Taxes |
|
1,335.1 |
|
|
721.2 |
|||
| Financial Services: | ||||||||
| Revenues |
|
509.3 |
|
|
423.2 |
|||
| Interest and other |
|
340.3 |
|
|
236.1 |
|||
| Selling, general and administrative |
|
39.0 |
|
|
35.2 |
|||
| Provision for losses on receivables |
|
16.1 |
|
|
3.1 |
|||
| Financial Services Income Before Income Taxes |
|
113.9 |
|
|
148.8 |
|||
| Investment income |
|
85.5 |
|
|
49.0 |
|||
| Total Income Before Income Taxes |
|
1,534.5 |
|
|
919.0 |
|||
| Income taxes |
|
339.2 |
|
|
185.1 |
|||
| Net Income | $ |
1,195.3 |
|
$ |
733.9 |
|||
| Net Income Per Share: | ||||||||
| Basic | $ |
2.28 |
|
$ |
1.40 |
|||
| Diluted | $ |
2.27 |
|
$ |
1.40 |
|||
| Weighted Average Shares Outstanding: | ||||||||
| Basic |
|
524.9 |
|
|
523.5 |
|||
| Diluted |
|
526.3 |
|
|
524.4 |
|||
| Dividends declared per share | $ |
.27 |
|
$ |
.25 |
|||
| (1) Includes a |
||||||||
| PACCAR Inc | ||||||
| CONDENSED BALANCE SHEETS | ||||||
| (in millions) | ||||||
March 31 |
December 31 |
|||||
2024 |
2023 |
|||||
| ASSETS | ||||||
| Truck, Parts and Other: | ||||||
| Cash and marketable securities | $ |
7,727.2 |
$ |
8,659.3 |
||
| Trade and other receivables, net |
|
2,410.9 |
|
2,198.1 |
||
| Inventories, net |
|
2,742.6 |
|
2,576.7 |
||
| Property, plant and equipment, net |
|
3,796.9 |
|
3,780.1 |
||
| Equipment on operating leases and other, net |
|
2,543.4 |
|
2,645.3 |
||
| Financial Services Assets |
|
21,152.6 |
|
20,963.9 |
||
$ |
40,373.6 |
$ |
40,823.4 |
|||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Truck, Parts and Other: | ||||||
| Accounts payable, deferred revenues and other | $ |
7,642.5 |
$ |
9,015.8 |
||
| Financial Services Liabilities |
|
15,859.2 |
|
15,928.8 |
||
| STOCKHOLDERS' EQUITY |
|
16,871.9 |
|
15,878.8 |
||
$ |
40,373.6 |
$ |
40,823.4 |
|||
| Common Shares Outstanding |
|
524.1 |
|
523.3 |
||
PACCAR Inc |
||||||||
CONDENSED CASH FLOW STATEMENTS |
||||||||
(in millions) |
||||||||
| Three Months Ended March 31 | 2024 |
2023 |
||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ |
1,195.3 |
|
$ |
733.9 |
|
||
| Depreciation and amortization: | ||||||||
| Property, plant and equipment |
|
104.2 |
|
|
103.0 |
|
||
| Equipment on operating leases and other |
|
130.8 |
|
|
118.1 |
|
||
| Net change in trade receivables, inventory and payables |
|
140.5 |
|
|
(187.2 |
) |
||
| Net increase in wholesale receivables on new trucks |
|
(183.4 |
) |
|
(451.2 |
) |
||
| All other operating activities, net |
|
81.6 |
|
|
368.2 |
|
||
| Net Cash Provided by Operating Activities |
|
1,469.0 |
|
|
684.8 |
|
||
| INVESTING ACTIVITIES: | ||||||||
| Payments for property, plant and equipment |
|
(191.3 |
) |
|
(138.7 |
) |
||
| Acquisitions of equipment for operating leases |
|
(160.5 |
) |
|
(153.1 |
) |
||
| Net increase in financial services receivables |
|
(317.4 |
) |
|
(178.9 |
) |
||
| Net increase in marketable debt securities |
|
(25.8 |
) |
|
(10.9 |
) |
||
| Proceeds from asset disposals and other |
|
168.9 |
|
|
188.9 |
|
||
| Net Cash Used in Investing Activities |
|
(526.1 |
) |
|
(292.7 |
) |
||
| FINANCING ACTIVITIES: | ||||||||
| Payments of cash dividends |
|
(1,816.5 |
) |
|
(1,105.3 |
) |
||
| Purchases of treasury stock |
|
(4.0 |
) |
|
(3.0 |
) |
||
| Proceeds from stock compensation transactions |
|
35.4 |
|
|
20.5 |
|
||
| Net (decrease) increase in debt and other |
|
(94.9 |
) |
|
397.0 |
|
||
| Net Cash Used in Financing Activities |
|
(1,880.0 |
) |
|
(690.8 |
) |
||
| Effect of exchange rate changes on cash |
|
(50.1 |
) |
|
17.9 |
|
||
| Net Decrease in Cash and Cash Equivalents |
|
(987.2 |
) |
|
(280.8 |
) |
||
| Cash and cash equivalents at beginning of period |
|
7,181.7 |
|
|
4,690.9 |
|
||
| Cash and cash equivalents at end of period | $ |
6,194.5 |
|
$ |
4,410.1 |
|
||
| PACCAR Inc | |||||||||
| SEGMENT AND OTHER INFORMATION | |||||||||
| (in millions) | |||||||||
Three Months Ended |
|||||||||
March 31 |
|||||||||
2024 |
2023 |
||||||||
| Sales and Revenues: | |||||||||
| Truck | $ |
6,541.0 |
$ |
6,413.8 |
|
||||
| Parts |
|
1,675.9 |
|
1,623.0 |
|
||||
| Financial Services |
|
509.3 |
|
423.2 |
|
||||
| Other |
|
18.1 |
|
13.3 |
|
||||
$ |
8,744.3 |
$ |
8,473.3 |
|
|||||
| Pretax Profit: | |||||||||
| Truck | $ |
881.6 |
$ |
894.3 |
|
||||
| Parts |
|
455.8 |
|
438.6 |
|
||||
| Financial Services |
|
113.9 |
|
148.8 |
|
||||
| Investment Income and Other |
|
83.2 |
|
(562.7 |
) |
(1) |
|||
$ |
1,534.5 |
$ |
919.0 |
|
|||||
| GEOGRAPHIC REVENUE | |||||||||
| (in millions) | |||||||||
Three Months Ended |
|||||||||
| March 31 | |||||||||
2024 |
2023 |
||||||||
$ |
5,674.6 |
$ |
5,040.1 |
|
|||||
|
1,805.0 |
|
2,275.5 |
|
|||||
| Other |
|
1,264.7 |
|
1,157.7 |
|
||||
$ |
8,744.3 |
$ |
8,473.3 |
|
|||||
| NEW TRUCK DELIVERIES | |||||||||
Three Months Ended |
|||||||||
March 31 |
|||||||||
2024 |
2023 |
||||||||
|
29,500 |
|
26,000 |
|
|||||
|
11,600 |
|
17,400 |
|
|||||
| Other |
|
7,000 |
|
7,700 |
|
||||
|
48,100 |
|
51,100 |
|
|||||
| (1) Includes a |
|||||||||
| PACCAR Inc | ||||||
| SUPPLEMENTARY INFORMATION | ||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||
| This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with |
||||||
| For the first quarter 2023, adjustment for the EC-related claims relates to a pre-tax charge of |
||||||
| Management utilizes these non-GAAP measures to evaluate the Company’s performance and believes these measures allow investors and management to evaluate operating trends by excluding a significant non-recurring charge that is not representative of underlying operating trends. | ||||||
| Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows: | ||||||
| Three Months Ended | ||||
| ($ in millions, except per share amounts) | March 31, 2023 | |||
| Net income | $ | 733.9 |
||
| EC-related claims, net of taxes | 446.4 |
|||
| Adjusted net income (non-GAAP) | $ | 1,180.3 |
||
| Per diluted share: | ||||
| Net income | $ | 1.40 |
||
| EC-related claims, net of taxes | .85 |
|||
| Adjusted net income (non-GAAP) | $ | 2.25 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240430725329/en/
Ken Hastings
ken.hastings@paccar.com
(425) 468-7530
Source: PACCAR
