PACCAR Achieves Good Annual Revenues and Net Income
PACCAR (Nasdaq: PCAR) reported annual revenues of $18.73 billion and net income of $1.30 billion for 2020, down from $25.60 billion and $2.39 billion in 2019, respectively. In Q4 2020, revenues were $5.57 billion, with a net income of $405.8 million compared to $531.3 million in Q4 2019. The company declared dividends of $1.98 per share and achieved record quarterly PACCAR Parts revenue of $1.07 billion. PACCAR is investing in technologies for autonomous and electric trucks and reported increased market shares in North America and Europe, reflecting strong operational efficiency and quality products.
- Achieved record quarterly PACCAR Parts revenue of $1.07 billion.
- Increased market share in U.S. and Canada Class 8 retail sales to 30.1%.
- Achieved strong aftermarket parts sales with pre-tax income of $799.3 million.
- Announced strategic partnership with Aurora for autonomous truck development.
- Declaring cash dividends of $1.98 per share, including an extra cash dividend of $0.70.
- Net income decreased from $2.39 billion in 2019 to $1.30 billion in 2020.
- Annual revenues fell from $25.60 billion in 2019 to $18.73 billion in 2020.
- Fourth quarter net income dropped to $405.8 million from $531.3 million in Q4 2019.
“PACCAR (Nasdaq: PCAR) reported good annual revenues and profits in 2020,” said Preston Feight, chief executive officer. “PACCAR’s results reflect the company’s premium-quality products and services, excellent operational efficiency and strong aftermarket parts sales. I am very proud of our employees who have delivered outstanding products and transportation solutions to our customers while demonstrating the highest commitment to health and safety at all PACCAR facilities.”
Peterbilt 220EV Battery Electric Truck (Photo: Business Wire)
“PACCAR is investing in new technologies that will deliver enhanced operational efficiency and environmental benefits to our customers. PACCAR made progress on several important technology and innovation initiatives in 2020, including a strategic partnership to develop autonomous trucks, the launch of electric truck production, and enhancing connected services for Kenworth, Peterbilt and DAF trucks,” added Feight.
PACCAR achieved quarterly revenues of
PACCAR Dividends
PACCAR declared cash dividends of
Business Highlights – 2020
- PACCAR earned its 82nd consecutive year of net income.
- PACCAR delivered 133,300 vehicles worldwide.
-
Kenworth and Peterbilt increased U.S. and Canada Class 8 retail sales market share to
30.1% . -
Kenworth and Peterbilt increased U.S. and Canada medium-duty retail sales market share to a record
22.6% . -
DAF increased Europe above 16-tonne registrations market share to
16.3% . -
DAF Brasil achieved record above 16-tonne retail sales market share of
5.7% . - The DAF XF truck earned the Fleet Truck of the Year 2020 award in the United Kingdom.
- The DAF CF and XF model ranges won the prestigious international Good Design Awards for outstanding design and innovation.
-
DAF Leyland received the prestigious Queen’s Award for Enterprise in International Trade 2020 for increasing exports by almost
50% over the last three years. - PACCAR achieved five awards from the National Association of Manufacturers: Kenworth Chillicothe earned two Operational Excellence Leadership awards; Peterbilt achieved a Talent Management Leadership award and an Operational Excellence Leadership award; and PACCAR Ste-Therese was recognized in Manufacturing Leadership.
- PACCAR Inc, Peterbilt, Kenworth, PACCAR Parts and Dynacraft were each recognized as top workplaces for women by Women in Trucking, an organization that promotes the employment and success of women in the trucking industry.
-
PACCAR earned an “A-” rating from CDP for its environmental practices, placing the company in the top
15% of over 9,500 reporting companies worldwide.
Financial Highlights – Fourth Quarter 2020
Highlights of PACCAR’s financial results during the fourth quarter of 2020 include:
-
Consolidated net sales and revenues of
$5.57 billion . -
Net income of
$405.8 million . -
Record quarterly PACCAR Parts revenue of
$1.07 billion . -
Record quarterly PACCAR Parts pretax income of
$222.5 million . -
PACCAR Financial Services pretax income of
$63.8 million . -
PACCAR invested
$202.4 million in capital projects and research and development.
Financial Highlights – Full Year 2020
Highlights of PACCAR’s financial results during 2020 include:
-
Consolidated revenues of
$18.73 billion . -
Net income of
$1.30 billion . -
PACCAR Parts revenue of
$3.91 billion . -
PACCAR Parts pretax income of
$799.3 million . -
Financial Services assets of
$15.80 billion . -
Financial Services new business volume of
$5.02 billion . -
Financial Services pretax income of
$223.1 million . -
Cash provided by operations of
$2.99 billion . -
Dividends declared of
$687.1 million . -
Medium-term note issuances of
$1.99 billion . -
PACCAR invested
$843.4 million in capital projects and research and development. -
Record year-end stockholders’ equity of
$10.42 billion .
Global Truck Markets
“A strong rebound in manufacturing, housing starts, automotive production and consumer spending in the second half of 2020 resulted in good freight tonnage and robust demand for Kenworth and Peterbilt trucks. Class 8 truck industry retail sales in the U.S. and Canada were 216,500 units in 2020. Kenworth and Peterbilt achieved market share of
European above 16-tonne truck industry registrations were 230,500 trucks in 2020. It is estimated that European truck industry registrations in the above 16-tonne market in 2021 will be in the range of 250,000-280,000 trucks. “European truck demand improved in the second half of the year along with the European economies,” said Harry Wolters, DAF president. “DAF achieved excellent above 16-tonne market share of
The South American above 16-tonne truck market was 93,000 vehicles in 2020, and is projected to be in a range of 100,000-110,000 trucks in 2021. DAF Brasil achieved a record
PACCAR Announces Strategic Partnership with Aurora to Develop Autonomous Trucks
PACCAR signed a global strategic agreement with Aurora, a leader in autonomous driving technologies, to develop autonomous Peterbilt 579 and Kenworth T680 trucks. “This partnership will integrate PACCAR’s autonomous vehicle platform with the Aurora self-driving technologies. PACCAR’s customers will benefit from the autonomous vehicles’ enhanced safety and operational efficiency,” said Kyle Quinn, PACCAR chief technology officer. “Kenworth T680 and Peterbilt 579 trucks utilizing the Aurora Driver are expected to be delivered in the next several years.”
Kenworth, Peterbilt and DAF Demonstrate Zero Emissions Leadership
A fuel cell electric Kenworth T680 and a battery electric Peterbilt 579EV recently became the first Class 8 zero emissions vehicles to drive to the 14,115 foot summit of Pikes Peak in Colorado. Both vehicles displayed superb power and exhibited excellent drivability over the 156 turns and switchbacks during the 4,700-foot elevation gain to the summit. The trucks handily negotiated the famous Pikes Peak International Hill Climb course. “PACCAR leads the industry in the development of zero emissions commercial vehicles,” said Darryl Oster, chief engineer global zero emissions.
The Kenworth T680 fuel cell electric vehicle offers 470 hp and a 350-mile range with a 15-minute refill time. Kenworth and Toyota Motor North America are collaborating on a project to develop Kenworth T680 zero emissions trucks powered by hydrogen fuel cell electric powertrains.
The Peterbilt 579EV that climbed Pikes Peak is designed for optimal weight distribution and performance. The fully integrated, electric powertrain uses thermally-controlled Lithium Ion Phosphate battery packs and can be quickly recharged, making the 579EV ideal for regional haul, port, pickup and delivery and last mile operations.
Kenworth, Peterbilt and DAF are leading the industry with more than 60 hybrid and zero emissions vehicles in customer testing, which have traveled nearly 500,000 miles. Kenworth K270E and T680E, Peterbilt 579EV, 220EV and 520EV, and DAF CF Electric zero emissions trucks became available for customers to order in the third quarter of 2020. Electric vehicle production will begin in the second quarter of 2021.
PACCAR Parts Achieves Record Quarterly Results
PACCAR’s aftermarket parts business achieved record fourth quarter pre-tax income of
PACCAR Parts’ 18 global distribution centers (PDCs) support over 2,200 DAF, Kenworth and Peterbilt dealer locations and deliver industry-leading customer service. PACCAR will open a new 260,000 square-foot PDC in Louisville, Kentucky next year to further enhance parts availability for customers.
Capital and R&D Investments in Products, Technologies and Facilities
PACCAR’s consistent long-term profits, strong balance sheet, and intense focus on quality, technology and productivity have enabled the company to invest
Financial Services Companies Achieve Very Good Results
PACCAR Financial Services (PFS) has a portfolio of 203,000 trucks and trailers, with total assets of
“PACCAR’s strong 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, issuing
PACCAR Environmental Leadership
PACCAR has been honored as a global leader in environmental practices by reporting firm CDP, earning a score of “A-” in 2020, which places PACCAR in the top
PACCAR reduced greenhouse gas emissions by
PACCAR is an environmental leader in its global factory operations, with over
PACCAR Philanthropy
The PACCAR Foundation has contributed over
PACCAR Values Workplace Diversity
PACCAR diversity councils operate throughout PACCAR’s global businesses. The diversity councils’ goals are to enhance business success through diverse and inclusive workplaces. The PACCAR Women’s Association seeks to increase women in PACCAR leadership roles by providing educational, networking and mentoring opportunities to employees at all levels. PACCAR, Kenworth, Peterbilt, PACCAR Parts and Dynacraft were each honored by the Women in Trucking Association as a 2020 Top Company for Women to Work for in Transportation.
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 fourth quarter earnings on January 26, 2021, at 9:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q4 Earnings Webcast” at PACCAR’s homepage. The webcast will be available on a recorded basis through February 2, 2021. PACCAR shares are traded on the Nasdaq Global Select 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 | Year Ended | ||||||||||||||||
| December 31 | December 31 | ||||||||||||||||
|
2020 |
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
|||||
| Truck, Parts and Other: | |||||||||||||||||
| Net sales and revenues | $ |
5,136.0 |
|
$ |
5,710.9 |
|
$ |
17,154.3 |
|
$ |
24,119.7 |
|
|||||
| Cost of sales and revenues |
|
4,487.0 |
|
|
4,890.0 |
|
|
15,076.4 |
|
|
20,555.6 |
|
|||||
| Research and development |
|
71.7 |
|
|
83.6 |
|
|
273.9 |
|
|
326.6 |
|
|||||
| Selling, general and administrative |
|
133.5 |
|
|
148.0 |
|
|
459.2 |
|
|
561.5 |
|
|||||
| Interest and other (income), net |
|
(8.5 |
) |
|
(10.3 |
) |
|
(54.1 |
) |
|
(42.0 |
) |
|||||
| Truck, Parts and Other Income Before Income Taxes |
|
452.3 |
|
|
599.6 |
|
|
1,398.9 |
|
|
2,718.0 |
|
|||||
| Financial Services: | |||||||||||||||||
| Revenues |
|
432.6 |
|
|
406.3 |
|
|
1,574.2 |
|
|
1,480.0 |
|
|||||
| Interest and other |
|
335.6 |
|
|
299.4 |
|
|
1,200.1 |
|
|
1,028.7 |
|
|||||
| Selling, general and administrative |
|
32.0 |
|
|
35.2 |
|
|
122.2 |
|
|
137.0 |
|
|||||
| Provision for losses on receivables |
|
1.2 |
|
|
3.6 |
|
|
28.8 |
|
|
15.4 |
|
|||||
| Financial Services Income Before Income Taxes |
|
63.8 |
|
|
68.1 |
|
|
223.1 |
|
|
298.9 |
|
|||||
| Investment income |
|
5.7 |
|
|
20.1 |
|
|
35.9 |
|
|
82.3 |
|
|||||
| Total Income Before Income Taxes |
|
521.8 |
|
|
687.8 |
|
|
1,657.9 |
|
|
3,099.2 |
|
|||||
| Income taxes |
|
116.0 |
|
|
156.5 |
|
|
359.5 |
|
|
711.3 |
|
|||||
| Net Income | $ |
405.8 |
|
$ |
531.3 |
|
$ |
1,298.4 |
|
$ |
2,387.9 |
|
|||||
| Net Income Per Share: | |||||||||||||||||
| Basic | $ |
1.17 |
|
$ |
1.53 |
|
$ |
3.74 |
|
$ |
6.88 |
|
|||||
| Diluted | $ |
1.17 |
|
$ |
1.53 |
|
$ |
3.74 |
|
$ |
6.87 |
|
|||||
| Weighted Average Shares Outstanding: | |||||||||||||||||
| Basic |
|
347.2 |
|
|
346.7 |
|
|
346.8 |
|
|
346.9 |
|
|||||
| Diluted |
|
348.0 |
|
|
347.4 |
|
|
347.4 |
|
|
347.5 |
|
|||||
| Dividends declared per share | $ |
1.02 |
|
$ |
2.62 |
|
$ |
1.98 |
|
$ |
3.58 |
|
|||||
| PACCAR Inc | |||||||||
| CONDENSED BALANCE SHEETS | |||||||||
| (in millions) | |||||||||
| December 31 | December 31 | ||||||||
|
2020 |
2019 |
|||||||
| ASSETS | |||||||||
| Truck, Parts and Other: | |||||||||
| Cash and marketable debt securities | $ |
4,834.0 |
$ |
5,169.4 |
|||||
| Trade and other receivables, net |
|
1,197.5 |
|
1,306.1 |
|||||
| Inventories, net |
|
1,221.9 |
|
1,153.2 |
|||||
| Property, plant and equipment, net |
|
3,270.4 |
|
2,883.8 |
|||||
| Equipment on operating leases and other, net |
|
1,961.5 |
|
1,777.2 |
|||||
| Financial Services Assets |
|
15,799.8 |
|
16,071.4 |
|||||
$ |
28,285.1 |
$ |
28,361.1 |
||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Truck, Parts and Other: | |||||||||
| Accounts payable, deferred revenues and other | $ |
5,601.1 |
$ |
6,013.1 |
|||||
| Financial Services Liabilities |
|
12,268.9 |
|
12,641.9 |
|||||
| STOCKHOLDERS' EQUITY |
|
10,415.1 |
|
9,706.1 |
|||||
$ |
28,285.1 |
$ |
28,361.1 |
||||||
| Common Shares Outstanding |
|
346.6 |
|
346.3 |
|||||
| PACCAR Inc | ||||||||||
| CONDENSED CASH FLOW STATEMENTS | ||||||||||
| (in millions) | ||||||||||
| Year Ended December 31 |
|
2020 |
|
2019 |
|
|||||
| OPERATING ACTIVITIES: | ||||||||||
| Net income | $ |
1,298.4 |
|
$ |
2,387.9 |
|
||||
| Depreciation and amortization: | ||||||||||
| Property, plant and equipment |
|
249.6 |
|
|
322.2 |
|
||||
| Equipment on operating leases and other |
|
799.4 |
|
|
755.1 |
|
||||
| Net change in trade receivables, inventory and payables |
|
20.0 |
|
|
(75.3 |
) |
||||
| Net decrease (increase) in wholesale receivables on new trucks |
|
871.2 |
|
|
(520.2 |
) |
||||
| All other operating activities, net |
|
(251.4 |
) |
|
(9.4 |
) |
||||
| Net Cash Provided by Operating Activities |
|
2,987.2 |
|
|
2,860.3 |
|
||||
| INVESTING ACTIVITIES: | ||||||||||
| Payments for property, plant and equipment |
|
(550.4 |
) |
|
(574.0 |
) |
||||
| Acquisitions of equipment for operating leases |
|
(1,088.0 |
) |
|
(1,396.8 |
) |
||||
| Net increase in financial services receivables |
|
(612.0 |
) |
|
(740.7 |
) |
||||
| Net increase in marketable debt securities |
|
(244.6 |
) |
|
(135.1 |
) |
||||
| Proceeds from asset disposals and other |
|
619.2 |
|
|
639.2 |
|
||||
| Net Cash Used in Investing Activities |
|
(1,875.8 |
) |
|
(2,207.4 |
) |
||||
| FINANCING ACTIVITIES: | ||||||||||
| Payments of cash dividends |
|
(1,239.8 |
) |
|
(1,138.6 |
) |
||||
| Purchases of treasury stock |
|
(42.1 |
) |
|
(110.2 |
) |
||||
| Proceeds from stock compensation transactions |
|
53.7 |
|
|
60.8 |
|
||||
| Net (decrease) increase in debt and other |
|
(580.3 |
) |
|
1,271.4 |
|
||||
| Net Cash (Used in) Provided by Financing Activities |
|
(1,808.5 |
) |
|
83.4 |
|
||||
| Effect of exchange rate changes on cash |
|
61.6 |
|
|
2.9 |
|
||||
| Net (Decrease) Increase in Cash and Cash Equivalents |
|
(635.5 |
) |
|
739.2 |
|
||||
| Cash and cash equivalents at beginning of period |
|
4,175.1 |
|
|
3,435.9 |
|
||||
| Cash and cash equivalents at end of period | $ |
3,539.6 |
|
$ |
4,175.1 |
|
||||
| PACCAR Inc | ||||||||||||
| SEGMENT AND OTHER INFORMATION | ||||||||||||
| (in millions) | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| December 31 | December 31 | |||||||||||
|
2020 |
|
2019 |
2020 |
|
2019 |
||||||
| Sales and Revenues: | ||||||||||||
| Truck | $ |
4,044.8 |
$ |
4,692.9 |
$ |
13,164.8 |
$ |
19,989.5 |
||||
| Parts |
|
1,074.4 |
|
993.9 |
|
3,912.9 |
|
4,024.9 |
||||
| Financial Services |
|
432.6 |
|
406.3 |
|
1,574.2 |
|
1,480.0 |
||||
| Other |
|
16.8 |
|
24.1 |
|
76.6 |
|
105.3 |
||||
$ |
5,568.6 |
$ |
6,117.2 |
$ |
18,728.5 |
$ |
25,599.7 |
|||||
| Pretax Profit: | ||||||||||||
| Truck | $ |
234.4 |
$ |
395.7 |
$ |
581.4 |
$ |
1,904.9 |
||||
| Parts |
|
222.5 |
|
205.2 |
|
799.3 |
|
830.8 |
||||
| Financial Services |
|
63.8 |
|
68.1 |
|
223.1 |
|
298.9 |
||||
| Investment Income and Other |
|
1.1 |
|
18.8 |
|
54.1 |
|
64.6 |
||||
$ |
521.8 |
$ |
687.8 |
$ |
1,657.9 |
$ |
3,099.2 |
|||||
| GEOGRAPHIC REVENUE | ||||||||||||
| (in millions) | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| December 31 | December 31 | |||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||
| United States and Canada | $ |
3,258.3 |
$ |
3,943.9 |
$ |
11,596.3 |
$ |
16,762.9 |
||||
| Europe |
|
1,609.5 |
|
1,554.2 |
|
4,871.2 |
|
6,104.7 |
||||
| Other |
|
700.8 |
|
619.1 |
|
2,261.0 |
|
2,732.1 |
||||
$ |
5,568.6 |
$ |
6,117.2 |
$ |
18,728.5 |
$ |
25,599.7 |
|||||
| NEW TRUCK DELIVERIES | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| December 31 | December 31 | |||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||
| United States and Canada |
|
21,100 |
|
26,600 |
|
73,300 |
|
117,200 |
||||
| Europe |
|
14,400 |
|
14,600 |
|
42,900 |
|
59,900 |
||||
| Other |
|
5,300 |
|
4,500 |
|
17,100 |
|
21,700 |
||||
|
40,800 |
|
45,700 |
|
133,300 |
|
198,800 |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210126005332/en/
FAQ
What were PACCAR's revenues and profits in 2020?
How did PACCAR perform in the fourth quarter of 2020?
What strategic partnerships has PACCAR formed recently?
What is PACCAR's market share in the North American Class 8 truck market?
How much did PACCAR declare in dividends during 2020?
