“PACCAR achieved excellent revenues and net income in the second
quarter of 2024,” said Preston Feight, chief executive officer.
“PACCAR’s truck and Parts operations achieved robust quarterly
sales and profits due to industry-leading trucks and strong
aftersales performance that enhanced customer uptime. PACCAR
Financial Services delivered good profitability due to its growing,
high quality portfolio. I am very proud of our employees for
delivering industry-leading trucks and transportation solutions to
our customers.”
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Peterbilt 579, Kenworth T680 and DAF XG+
Trucks (Photo: Business Wire)
PACCAR earned net income of $1.12 billion ($2.13 per diluted
share) in the second quarter, compared to $1.22 billion ($2.33 per
diluted share) earned in the same period last year. Second quarter
net sales and financial services revenues were $8.77 billion,
compared to $8.88 billion achieved in the second quarter of
2023.
PACCAR reported net income of $2.32 billion ($4.40 per diluted
share) in the first half of 2024, compared to net income of $1.96
billion ($3.73 per diluted share) earned in same period last year,
which included a $446.4 million after-tax, non-recurring charge
related to civil litigation in Europe. Excluding the non-recurring
charge, the company earned adjusted net income (non-GAAP)1 of $2.40
billion ($4.58 per diluted share) in the first half of 2023. Net
sales and financial services revenues for the first six months of
2024 were $17.52 billion, compared to $17.35 billion achieved last
year.
Financial Highlights – Second Quarter 2024
Highlights of PACCAR’s financial results for the second quarter
of 2024 include:
- Consolidated net sales and revenues of $8.77 billion.
- Consolidated net income of $1.12 billion.
- Global truck deliveries of 48,400 units.
- PACCAR Parts revenues of $1.66 billion.
- PACCAR Parts pretax income of $413.8 million.
- PACCAR Financial Services pretax income of $111.2 million.
- Capital investments of $219.6 million and R&D expenses of
$117.1 million.
- Cash generated from operations of $440.0 million.
- Stockholders’ equity of $17.70 billion.
Financial Highlights – First Half 2024
Highlights of PACCAR’s financial results for the first six
months of 2024 include:
- Consolidated net sales and revenues of $17.52 billion.
- Consolidated net income of $2.32 billion.
- Capital investments of $383.9 million and R&D expenses of
$222.6 million.
- PACCAR Parts pretax income of $869.6 million.
- PACCAR Financial Services pretax income of $225.1 million.
- Cash generated from operations of $1.91 billion.
- Medium-term note issuances of $1.71 billion.
____________________
1 See attached supplementary information on non-GAAP financial
measures.
Global Truck Markets
U.S. and Canada Class 8 truck industry retail sales are
estimated to be in a range of 240,000-280,000 trucks in 2024.
Peterbilt and Kenworth achieved a combined class 8 market share of
31.5% in the first half of 2024, compared to 27.7% in the same
period last year. “Peterbilt and Kenworth’s premium quality trucks
provide exceptional durability and reliability. The Kenworth and
Peterbilt industry-leading vocational trucks are an important
contributor to the success of infrastructure investments in North
America,” said Darrin Siver, PACCAR executive vice president.
Harald Seidel, DAF president, shared, “Aerodynamic DAF trucks
are delivering the highest fuel efficiency in the industry, which
reduces customers’ operating expenses.” European truck industry
registrations in the above 16-tonne segment are estimated to be in
a range of 260,000-300,000 vehicles this year.
Mike Dozier, PACCAR executive vice president, said, “DAF’s
industry-leading quality trucks, complemented by PACCAR Parts,
PACCAR Financial Services and DAF’s premium dealerships, are
driving DAF Brasil to higher market share.” DAF Brasil’s market
share was 10.3% in the above 16-tonne truck segment in the first
six months of this year, compared to 9.2% in the same period last
year. The South American above 16-tonne truck market is estimated
to be in the range of 105,000-115,000 units this year.
PACCAR Parts Achieves Excellent Quarterly Revenues and
Profits
PACCAR Parts earned excellent quarterly pretax income of $413.8
million in the second quarter of 2024, compared to $419.3 million
earned in the same period last year. PACCAR Parts achieved
quarterly revenues of $1.66 billion in the second quarter, compared
to $1.60 billion reported in the same period last year. PACCAR
Parts first half 2024 revenues were $3.34 billion, compared to
$3.22 billion in the same period last year. PACCAR Parts achieved
pretax profit of $869.6 million in the first six months of 2024,
compared to $857.9 million earned in the first six months of
2023.
“PACCAR Parts delivers greater uptime and profitability for
customers by delivering the right part in the right place at the
right time,” said Laura Bloch, PACCAR vice president and PACCAR
Parts general manager. “PACCAR Parts’ excellent performance
reflects investments in its TRP all-makes parts program, strategic
technology-driven transportation solutions such as managed dealer
inventory, and a growing number of PACCAR trucks with PACCAR
powertrains in operation.”
PACCAR Parts’ 19 global parts distribution centers (PDCs)
support more than 2,300 DAF, Kenworth and Peterbilt dealer
locations. PACCAR is constructing a new 240,000 square-foot PDC to
be opened in Massbach, Germany, this year. The new PDC will enhance
parts delivery to dealers and customers in the largest truck market
in Europe.
Financial Services Companies Achieve Good Quarterly
Results
PACCAR Financial Services (PFS) earned pretax income of $111.2
million in the second quarter this year, compared to $144.7 million
in the second quarter of 2023. PFS achieved second quarter 2024
revenues of $509.8 million, compared to $439.8 million in the same
period last year. For the first six months of 2024, PFS earned
pretax income of $225.1 million, compared to $293.5 million last
year. “PFS achieved good first half results due to its growing,
high quality portfolio. The used truck market has normalized after
a period of high volume and prices,” said Todd Hubbard, PACCAR vice
president. “PFS is a leader in the market with its superior
Kenworth, Peterbilt and DAF products, innovative technologies that
provide seamless credit application and loan servicing processes,
and its support of customers in all phases of the business
cycle.”
PFS has a portfolio of 229,000 trucks and trailers, with total
assets of $21.33 billion. PacLease, a major full-service truck
leasing company in North America, Europe and Australia with a fleet
of 41,000 vehicles, is included in this segment.
“PACCAR’s excellent balance sheet, complemented by its A+/A1
credit ratings, enables PFS to offer competitive retail financing
to Kenworth, Peterbilt and DAF dealers and customers in 26
countries on four continents,” said Craig Gryniewicz, PACCAR
Financial Corp. president. PACCAR Financial Services has excellent
access to the debt markets, and issued $1.71 billion of medium-term
notes during the first half of 2024.
Capital and R&D Investments in Products, Technologies and
Facilities
PACCAR’s excellent long-term profits, strong balance sheet, and
consistent focus on quality, technology and productivity have
enabled the company to invest $8.2 billion in new and expanded
facilities, innovative products and new technologies during the
past decade. Capital investments have increased and are estimated
to be in a range of $725-$775 million, and research and development
expenses are projected to be in a range of $460-$480 million, this
year. “PACCAR is investing in new powertrains, advanced
manufacturing capabilities and capacity, and aftermarket
distribution capabilities that will create value for our
customers,” said Harrie Schippers, president and chief financial
officer. “PACCAR is investing more than $200 million in additional
engine manufacturing capacity, and in the construction of a new
engine remanufacturing facility, in Columbus, Mississippi. Recent
truck factory investments include the expansion at Kenworth
Chillicothe, Ohio, and PACCAR Mexico, and the DAF new electric
truck assembly plant in Eindhoven, Netherlands.”
PACCAR Battery Joint Venture Groundbreaking
In the second quarter, PACCAR, Cummins, Daimler Truck and EVE
Energy completed the formation of their U.S. battery manufacturing
joint venture, Amplify Cell Technologies, and began construction of
its 21-gigawatt hour (GWh) battery factory in Marshall County,
Mississippi. The factory is expected to start production in 2027.
“Amplify Cell Technologies will enable PACCAR to offer customers
cost-effective premium quality battery electric powertrains that
meet their operational and sustainability needs,” said John Rich,
PACCAR senior vice president and chief technology officer. “We are
pleased to begin this exciting venture with these world class
partners.”
PACCAR will hold a conference call with securities analysts to
discuss second quarter earnings on July 23, 2024, at 9:00 a.m.
Pacific time. Interested parties may listen to the call by
selecting “Q2 Earnings Webcast” at PACCAR’s homepage. The Webcast
will be available on a recorded basis through July 30, 2024. PACCAR
shares are listed 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.
PACCAR Inc SUMMARY STATEMENTS OF OPERATIONS (in
millions except per share amounts) Three Months Ended
Six Months Ended June 30 June 30
2024
2023
2024
2023
Truck, Parts and Other: Net sales and revenues
$
8,262.3
$
8,441.3
$
16,497.3
$
16,491.4
Cost of sales and revenues
6,772.3
6,851.7
13,446.1
13,344.8
Research and development
117.1
101.3
222.6
198.5
Selling, general and administrative
142.7
144.9
290.3
304.7
Interest and other (income) expenses, net
(23.6
)
(17.7
)
(50.6
)
561.1
(1) Truck, Parts and Other Income Before Income Taxes
1,253.8
1,361.1
2,588.9
2,082.3
Financial Services: Revenues
509.8
439.8
1,019.1
863.0
Interest and other
346.1
253.3
686.4
489.4
Selling, general and administrative
40.8
37.0
79.8
72.2
Provision for losses on receivables
11.7
4.8
27.8
7.9
Financial Services Income Before Income Taxes
111.2
144.7
225.1
293.5
Investment income
95.8
62.7
181.3
111.7
Total Income Before Income Taxes
1,460.8
1,568.5
2,995.3
2,487.5
Income taxes
338.2
347.4
677.4
532.5
Net Income
$
1,122.6
$
1,221.1
$
2,317.9
$
1,955.0
Net Income Per Share: Basic
$
2.14
$
2.33
$
4.41
$
3.73
Diluted
$
2.13
$
2.33
$
4.40
$
3.73
Weighted Average Shares Outstanding: Basic
525.3
523.8
525.1
523.6
Diluted
526.6
524.8
526.5
524.6
Dividends declared per share
$
.30
$
.25
$
.57
$
.50
(1) Includes a $600.0 million non-recurring charge related to civil
litigation in Europe (EC-related claims) in the first quarter 2023.
PACCAR Inc CONDENSED BALANCE SHEETS (in
millions)
June 30 December 31
2024
2023
ASSETS Truck, Parts and Other: Cash and
marketable securities
$
7,803.8
$
8,659.3
Trade and other receivables, net
2,731.3
2,198.1
Inventories, net
2,783.0
2,576.7
Property, plant and equipment, net
3,895.9
3,780.1
Equipment on operating leases and other, net
2,629.8
2,645.3
Financial Services Assets
21,332.8
20,963.9
$
41,176.6
$
40,823.4
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck, Parts and Other: Accounts payable, deferred
revenues and other
$
7,348.2
$
9,015.8
Financial Services Liabilities
16,125.5
15,928.8
STOCKHOLDERS' EQUITY
17,702.9
15,878.8
$
41,176.6
$
40,823.4
Common Shares Outstanding
524.3
523.3
PACCAR Inc CONDENSED CASH FLOW
STATEMENTS (in millions) Six Months Ended June 30
2024
2023
OPERATING ACTIVITIES: Net income
$
2,317.9
$
1,955.0
Depreciation and amortization: Property, plant and equipment
204.3
205.2
Equipment on operating leases and other
262.6
239.3
Net change in trade receivables, inventory and payables
(293.8
)
(194.7
)
Net increase in wholesale receivables on new trucks
(348.2
)
(815.1
)
All other operating activities, net
(233.8
)
270.6
Net Cash Provided by Operating Activities
1,909.0
1,660.3
INVESTING ACTIVITIES: Payments for property, plant
and equipment
(411.6
)
(307.1
)
Acquisitions of equipment for operating leases
(453.0
)
(256.3
)
Net increase in financial services receivables
(668.8
)
(746.6
)
Net increase in marketable debt securities
(337.3
)
(69.1
)
Proceeds from asset disposals and other
300.9
334.4
Net Cash Used in Investing Activities
(1,569.8
)
(1,044.7
)
FINANCING ACTIVITIES: Payments of cash dividends
(1,973.8
)
(1,236.0
)
Purchases of treasury stock
(4.0
)
(3.0
)
Proceeds from stock compensation transactions
42.3
28.8
Net increase in debt and other
356.2
1,011.6
Net Cash Used in Financing Activities
(1,579.3
)
(198.6
)
Effect of exchange rate changes on cash
(70.1
)
38.0
Net (Decrease) Increase in Cash and Cash Equivalents
(1,310.2
)
455.0
Cash and cash equivalents at beginning of period
7,181.7
4,690.9
Cash and cash equivalents at end of period
$
5,871.5
$
5,145.9
PACCAR Inc SEGMENT AND OTHER INFORMATION (in
millions) Three Months Ended Six Months Ended June 30
June 30
2024
2023
2024
2023
Sales and Revenues: Truck
$
6,577.8
$
6,827.5
$
13,118.8
$
13,241.3
Parts
1,664.3
1,598.9
3,340.2
3,221.9
Financial Services
509.8
439.8
1,019.1
863.0
Other
20.2
14.9
38.3
28.2
$
8,772.1
$
8,881.1
$
17,516.4
$
17,354.4
Pretax Profit: Truck
$
837.3
$
948.3
$
1,718.9
$
1,842.6
Parts
413.8
419.3
869.6
857.9
Financial Services
111.2
144.7
225.1
293.5
Investment Income and Other
98.5
56.2
181.7
(506.5
) (1)
$
1,460.8
$
1,568.5
$
2,995.3
$
2,487.5
GEOGRAPHIC REVENUE (in millions) Three Months
Ended Six Months Ended June 30 June 30
2024
2023
2024
2023
United States and Canada
$
5,578.9
$
5,355.3
$
11,253.5
$
10,395.4
Europe
1,745.2
2,248.4
3,550.2
4,523.9
Other
1,448.0
1,277.4
2,712.7
2,435.1
$
8,772.1
$
8,881.1
$
17,516.4
$
17,354.4
NEW TRUCK DELIVERIES Three Months Ended
Six Months Ended June 30 June 30
2024
2023
2024
2023
United States and Canada
28,700
27,500
58,200
53,500
Europe
11,500
16,400
23,100
33,800
Other
8,200
8,000
15,200
15,700
48,400
51,900
96,500
103,000
(1) Includes a $600.0 million non-recurring charge related
to civil litigation in Europe (EC-related claims) in the first
quarter 2023.
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 U.S. generally accepted accounting principles
(“GAAP”), since they exclude a charge for EC-related claims. These
measures differ from the most directly comparable measures
calculated in accordance with GAAP and may not be comparable to
similarly titled non-GAAP financial measures used by other
companies. Adjustment for the EC-related claims relates to a
pre-tax charge of $600.0 million ($446.4 million after-tax) for
estimable total costs recorded in Interest and other (income)
expenses, net in the first quarter 2023. Management utilizes
these non-GAAP measures to evaluate the Company’s performance and
believes these measures allow investors and management to evaluate
operating trends by excluding a significant non-recurring charge
that is not representative of underlying operating trends.
Reconciliations from the most directly comparable GAAP measures to
adjusted net income (non-GAAP) and adjusted net income per diluted
share (non-GAAP) are as follows: Six Months Ended ($ in
millions, except per share amounts) June 30, 2023 Net income $
1,955.0
EC-related claims, net of taxes
446.4
Adjusted net income (non-GAAP) $
2,401.4
Per diluted share: Net income $
3.73
EC-related claims, net of taxes
.85
Adjusted net income (non-GAAP) $
4.58
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version on businesswire.com: https://www.businesswire.com/news/home/20240723272261/en/
Ken Hastings (425) 468-7530 ken.hastings@paccar.com
PACCAR (NASDAQ:PCAR)
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