PACCAR Achieves Excellent Quarterly Revenues and Earnings
Strong Truck Deliveries and Aftermarket Sales Drive Results
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Kenworth T880 Truck (Photo: Business Wire)
Net sales and financial services revenues for the first nine months of 2019 were
Feight added, “PACCAR achieved a strong 14.9% Truck, Parts and Other gross margin in the third quarter and year-to-date, benefiting from good pricing, production efficiency and rigorous cost controls. We anticipate that 2020 will be another good year with a normal replacement truck market and strong demand for PACCAR’s premium products.”
PACCAR Repurchases Common Shares
Financial Highlights – Third Quarter 2019
Highlights of PACCAR’s financial results for the third quarter of 2019 include:
-
Consolidated sales and revenues of
$6.37 billion . -
Net income of
$607.9 million , an after-tax return on revenues of 9.5%. -
PACCAR Parts pre-tax income of
$207.4 million . -
Financial Services pre-tax income of
$66.5 million . -
Manufacturing cash and marketable securities of
$4.64 billion . -
Cash generated from operations of
$727.1 million . -
Record stockholders’ equity of
$9.96 billion .
Financial Highlights – Nine Months 2019
Highlights of PACCAR’s financial results for the first nine months of 2019 include:
-
Record consolidated sales and revenues of
$19.48 billion . -
Record net income of
$1.86 billion . -
PACCAR Parts pre-tax income of
$625.6 million . -
Financial Services pre-tax income of
$230.8 million . -
Cash generated from operations of
$1.92 billion . -
Medium-term note issuances of
$2.04 billion .
Global Truck Markets
Class 8 truck industry retail sales for the U.S. and
“Customers recognize DAF’s product quality leadership, industry-leading fuel efficiency, low operating costs and excellent resale value,” said
The South American above 16-tonne truck market is projected to be in a range of 95,000-105,000 vehicles this year, and in a range of 100,000-110,000 trucks in 2020. “Customer demand for DAF and Kenworth trucks has resulted in a 79% increase in deliveries in
PACCAR Parts Achieves Excellent Profits and Opens New TRP Stores
PACCAR Parts achieved outstanding pre-tax profit of
DAF, Kenworth and
Capital Investment and Research and Development
PACCAR’s excellent long-term profits, strong balance sheet and intense focus on quality have enabled the company to invest
“The company is investing in aerodynamic truck models, integrated powertrains including diesel, electric, hybrid, and hydrogen fuel cell technologies, as well as advanced driver assistance systems, digital services and next-generation manufacturing capabilities,” said
PACCAR Earns Diversity Award
Kenworth,
Financial Services Companies Achieve Good Results
PFS achieved good profits during the third quarter and first nine months of 2019. PFS earned
“PFS provides leading-edge technology solutions, excellent customer service and dedicated support to the transportation industry. Kenworth,
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
PACCAR Inc | ||||||||||||||
SUMMARY STATEMENTS OF OPERATIONS | ||||||||||||||
(in millions except per share amounts) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30 | September 30 | |||||||||||||
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
||
Truck, Parts and Other: | ||||||||||||||
Net sales and revenues |
$ |
6,004.2 |
|
$ |
5,416.9 |
|
$ |
18,408.8 |
|
$ |
16,205.9 |
|
||
Cost of sales and revenues |
|
5,106.8 |
|
|
4,653.6 |
|
|
15,665.6 |
|
|
13,836.4 |
|
||
Research and development |
|
82.2 |
|
|
72.9 |
|
|
243.0 |
|
|
225.6 |
|
||
Selling, general and administrative |
|
136.8 |
|
|
124.2 |
|
|
413.5 |
|
|
388.3 |
|
||
Interest and other (income), net |
|
(11.6 |
) |
|
(7.4 |
) |
|
(31.7 |
) |
|
(42.5 |
) |
||
Truck, Parts and Other Income Before Income Taxes |
|
690.0 |
|
|
573.6 |
|
|
2,118.4 |
|
|
1,798.1 |
|
||
Financial Services: | ||||||||||||||
Revenues |
|
362.8 |
|
|
339.9 |
|
|
1,073.7 |
|
|
1,010.1 |
|
||
Interest and other |
|
254.9 |
|
|
227.5 |
|
|
729.3 |
|
|
686.4 |
|
||
Selling, general and administrative |
|
35.8 |
|
|
29.3 |
|
|
101.8 |
|
|
90.2 |
|
||
Provision for losses on receivables |
|
5.6 |
|
|
4.3 |
|
|
11.8 |
|
|
14.8 |
|
||
Financial Services Income Before Income Taxes |
|
66.5 |
|
|
78.8 |
|
|
230.8 |
|
|
218.7 |
|
||
Investment income |
|
21.1 |
|
|
16.4 |
|
|
62.2 |
|
|
41.0 |
|
||
Total Income Before Income Taxes |
|
777.6 |
|
|
668.8 |
|
|
2,411.4 |
|
|
2,057.8 |
|
||
Income taxes |
|
169.7 |
|
|
123.5 |
|
|
554.8 |
|
|
440.8 |
|
||
Net Income |
$ |
607.9 |
|
$ |
545.3 |
|
$ |
1,856.6 |
|
$ |
1,617.0 |
|
||
Net Income Per Share: | ||||||||||||||
Basic |
$ |
1.75 |
|
$ |
1.55 |
|
$ |
5.35 |
|
$ |
4.60 |
|
||
Diluted |
$ |
1.75 |
|
$ |
1.55 |
|
$ |
5.34 |
|
$ |
4.59 |
|
||
Weighted Average Shares Outstanding: | ||||||||||||||
Basic |
|
346.6 |
|
|
350.7 |
|
|
346.9 |
|
|
351.6 |
|
||
Diluted |
|
347.2 |
|
|
351.5 |
|
|
347.6 |
|
|
352.5 |
|
||
Dividends declared per share |
$ |
.32 |
|
$ |
.28 |
|
$ |
.96 |
|
$ |
.81 |
|
||
PACCAR Inc | |||||||
CONDENSED BALANCE SHEETS | |||||||
(in millions) | |||||||
September 30 |
December 31 |
||||||
2019 |
|
|
2018 |
||||
ASSETS | |||||||
Truck, Parts and Other: | |||||||
Cash and marketable debt securities |
$ |
4,643.0 |
$ |
4,299.6 |
|||
Trade and other receivables, net |
|
1,729.0 |
|
1,314.4 |
|||
Inventories, net |
|
1,292.6 |
|
1,184.7 |
|||
Property, plant and equipment, net |
|
2,690.8 |
|
2,480.9 |
|||
Equipment on operating leases and other, net |
|
1,797.8 |
|
1,803.2 |
|||
Financial Services Assets |
|
15,614.5 |
|
14,399.6 |
|||
$ |
27,767.7 |
$ |
25,482.4 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Truck, Parts and Other: | |||||||
Accounts payable, deferred revenues and other |
$ |
5,557.8 |
$ |
5,710.9 |
|||
Financial Services Liabilities |
|
12,247.2 |
|
11,178.6 |
|||
STOCKHOLDERS' EQUITY |
|
9,962.7 |
|
8,592.9 |
|||
$ |
27,767.7 |
$ |
25,482.4 |
||||
Common Shares Outstanding |
|
345.7 |
|
346.6 |
|||
PACCAR Inc | |||||||
CONDENSED CASH FLOW STATEMENTS | |||||||
(in millions) | |||||||
Nine Months Ended September 30 |
2019 |
|
|
2018 |
|
||
OPERATING ACTIVITIES: | |||||||
Net income |
$ |
1,856.6 |
|
$ |
1,617.0 |
|
|
Depreciation and amortization: | |||||||
Property, plant and equipment |
|
243.1 |
|
|
255.6 |
|
|
Equipment on operating leases and other |
|
549.3 |
|
|
538.8 |
|
|
Net change in trade receivables, inventory and payables |
|
(170.3 |
) |
|
(252.8 |
) |
|
Net increase in wholesale receivables on new trucks |
|
(472.8 |
) |
|
(375.0 |
) |
|
All other operating activities, net |
|
(89.3 |
) |
|
143.6 |
|
|
Net Cash Provided by Operating Activities |
|
1,916.6 |
|
|
1,927.2 |
|
|
INVESTING ACTIVITIES: | |||||||
Payments for property, plant and equipment |
|
(387.2 |
) |
|
(334.5 |
) |
|
Acquisitions of equipment for operating leases |
|
(1,038.4 |
) |
|
(1,078.4 |
) |
|
Net increase in financial services receivables |
|
(519.0 |
) |
|
(695.6 |
) |
|
Net (increase) decrease in marketable debt securities |
|
(90.6 |
) |
|
343.2 |
|
|
Proceeds from asset disposals and other |
|
478.7 |
|
|
488.8 |
|
|
Net Cash Used in Investing Activities |
|
(1,556.5 |
) |
|
(1,276.5 |
) |
|
FINANCING ACTIVITIES: | |||||||
Payments of cash dividends |
|
(1,027.8 |
) |
|
(706.6 |
) |
|
Purchases of treasury stock |
|
(110.2 |
) |
|
(153.2 |
) |
|
Proceeds from stock compensation transactions |
|
33.8 |
|
|
13.2 |
|
|
Net increase in debt and other |
|
1,015.5 |
|
|
782.9 |
|
|
Net Cash Used in Financing Activities |
|
(88.7 |
) |
|
(63.7 |
) |
|
Effect of exchange rate changes on cash |
|
(37.8 |
) |
|
(37.7 |
) |
|
Net Increase in Cash and Cash Equivalents |
|
233.6 |
|
|
549.3 |
|
|
Cash and cash equivalents at beginning of period |
|
3,435.9 |
|
|
2,364.7 |
|
|
Cash and cash equivalents at end of period |
$ |
3,669.5 |
|
$ |
2,914.0 |
|
|
PACCAR Inc | ||||||||||||||||
SEGMENT AND OTHER INFORMATION | ||||||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
|
2019 |
2018 |
|
|
2019 |
|
2018 |
|||||||||
Sales and Revenues: | ||||||||||||||||
Truck |
$ |
4,977.4 |
$ |
4,429.4 |
$ |
15,296.6 |
$ |
13,250.2 |
||||||||
Parts |
|
1,000.9 |
|
960.1 |
|
3,031.0 |
|
2,868.0 |
||||||||
Financial Services |
|
362.8 |
|
339.9 |
|
1,073.7 |
|
1,010.1 |
||||||||
Other |
|
25.9 |
|
27.4 |
|
81.2 |
|
87.7 |
||||||||
$ |
6,367.0 |
$ |
5,756.8 |
$ |
19,482.5 |
$ |
17,216.0 |
|||||||||
Pretax Profit: | ||||||||||||||||
Truck |
$ |
481.5 |
$ |
391.0 |
$ |
1,509.2 |
$ |
1,220.2 |
||||||||
Parts |
|
207.4 |
|
188.5 |
|
625.6 |
|
574.8 |
||||||||
Financial Services |
|
66.5 |
|
78.8 |
|
230.8 |
|
218.7 |
||||||||
Investment Income and Other |
|
22.2 |
|
10.5 |
|
45.8 |
|
44.1 |
||||||||
$ |
777.6 |
$ |
668.8 |
$ |
2,411.4 |
$ |
2,057.8 |
|||||||||
GEOGRAPHIC REVENUE | ||||||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
|
2019 |
2018 |
|
|
2019 |
|
2018 |
|||||||||
United States and Canada |
$ |
4,405.9 |
$ |
3,844.3 |
$ |
12,819.0 |
$ |
10,945.1 |
||||||||
Europe |
|
1,305.2 |
|
1,259.5 |
|
4,550.5 |
|
4,346.1 |
||||||||
Other |
|
655.9 |
|
653.0 |
|
2,113.0 |
|
1,924.8 |
||||||||
$ |
6,367.0 |
$ |
5,756.8 |
$ |
19,482.5 |
$ |
17,216.0 |
|||||||||
NEW TRUCK DELIVERIES | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
|
2019 |
2018 |
|
|
2019 |
|
2018 |
|||||||||
United States and Canada |
|
31,700 |
|
28,400 |
|
90,600 |
|
78,500 |
||||||||
Europe |
|
12,700 |
|
14,300 |
|
45,300 |
|
45,800 |
||||||||
Other |
|
4,900 |
|
5,100 |
|
17,200 |
|
14,400 |
||||||||
|
49,300 |
|
47,800 |
|
153,100 |
|
138,700 |
|||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20191022005385/en/
Source:
Ken Hastings
(425) 468-7530
ken.hastings@paccar.com