PACCAR Achieves Record Quarterly Revenues and Profits
PACCAR reported record revenues and net income of $720.4 million ($2.07 per diluted share) in Q2 2022, a 45% increase from $495.5 million ($1.42 per diluted share) in Q2 2021. Total net sales reached $7.16 billion, up from $5.84 billion. The company delivered 46,900 trucks and recorded $1.43 billion in PACCAR Parts revenues with a pretax income of $353.3 million. For the first half of 2022, net income hit $1.32 billion with cash generated from operations of $1.10 billion. PACCAR declared a quarterly dividend of $0.34 per share, payable on September 7, 2022.
- Q2 2022 net income increased by 45% to $720.4 million.
- PACCAR Parts achieved record revenues of $1.43 billion.
- Gross margins improved to 14.4%, up from 13.5% year-over-year.
- Cash generated from operations in Q2 was $638.2 million.
- PACCAR Financial Services revenues decreased to $372.5 million in Q2 2022 from $456.3 million last year.
- PFS revenues for the first half declined to $738.7 million, down from $888.3 million.
Increased Deliveries of New Truck Models and Record Parts Performance Drive Results
Quarterly Dividend
PACCAR’s Board of Directors declared a regular quarterly cash dividend of
Financial Highlights – Second Quarter 2022
Highlights of PACCAR’s financial results for the second quarter of 2022 include:
-
Net sales and revenues of
.$7.16 billion -
Net income of
.$720.4 million - Global truck deliveries of 46,900 units.
-
PACCAR Parts revenues of
.$1.43 billion -
PACCAR Parts pretax income of
.$353.3 million -
PACCAR Financial Services pretax income of .$144.4 million -
Manufacturing cash and marketable securities of
.$4.69 billion -
Cash generated from operations of
.$638.2 million -
Stockholders’ equity of
.$12.52 billion
Financial Highlights – First Half 2022
Highlights of PACCAR’s financial results for the first six months of 2022 include:
-
Net sales and revenues of
.$13.63 billion -
Net income of
.$1.32 billion -
Capital investments of
and R&D expenses of$234.5 million .$158.4 million -
PACCAR Parts pretax income of
.$693.5 million -
PACCAR Financial Services pretax income of .$291.4 million -
Cash generated from operations of
.$1.10 billion -
Medium-term note issuances of
.$1.63 billion
Global Truck Markets Are Strong
“Strong freight tonnage, excellent industry truck utilization and ongoing customer demand for new Kenworth and
“DAF’s innovative range of premium new trucks has resulted in excellent demand and an increase in DAF’s European above 16-tonne year-to-date market share to
PACCAR Demonstrates Zero Emissions Leadership
A
PACCAR Parts Achieves Record Quarterly Revenues and Profits
PACCAR Parts earned quarterly pretax income of
“Customers’ increased truck utilization and higher average fleet age contributed to PACCAR Parts’ record results. PACCAR Parts’ advanced technology solutions increase customers’ uptime by providing optimized logistics support from 18 strategically located PDCs,” noted
PACCAR Parts global PDCs support more than 2,200 DAF, Kenworth and
Financial Services Companies Achieve Excellent Results
PFS has a portfolio of 210,000 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,
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
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
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SUMMARY STATEMENTS OF OPERATIONS |
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(in millions except per share amounts) |
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|
|
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|
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Three Months Ended |
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Six Months Ended |
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|
|
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||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Truck, Parts and Other: | ||||||||||||||||
Net sales and revenues | $ |
6,786.2 |
|
$ |
5,387.6 |
|
$ |
12,892.6 |
|
$ |
10,801.1 |
|
||||
Cost of sales and revenues |
|
5,811.0 |
|
|
4,659.4 |
|
|
11,096.5 |
|
|
9,349.1 |
|
||||
Research and development |
|
80.4 |
|
|
84.4 |
|
|
158.4 |
|
|
164.5 |
|
||||
Selling, general and administrative |
|
144.9 |
|
|
132.2 |
|
|
292.9 |
|
|
262.1 |
|
||||
Interest and other (income), net |
|
(22.4 |
) |
|
(17.2 |
) |
|
(54.4 |
) |
|
(30.4 |
) |
||||
Truck, Parts and Other Income Before Income Taxes |
|
772.3 |
|
|
528.8 |
|
|
1,399.2 |
|
|
1,055.8 |
|
||||
Financial Services: | ||||||||||||||||
Revenues |
|
372.5 |
|
|
456.3 |
|
|
738.7 |
|
|
888.3 |
|
||||
Interest and other |
|
191.8 |
|
|
318.1 |
|
|
375.1 |
|
|
638.8 |
|
||||
Selling, general and administrative |
|
31.9 |
|
|
32.2 |
|
|
67.6 |
|
|
63.4 |
|
||||
Provision for losses on receivables |
|
4.4 |
|
|
(.5 |
) |
|
4.6 |
|
|
3.2 |
|
||||
Financial Services Income Before Income Taxes |
|
144.4 |
|
|
106.5 |
|
|
291.4 |
|
|
182.9 |
|
||||
Investment income |
|
5.4 |
|
|
5.0 |
|
|
2.9 |
|
|
9.9 |
|
||||
Total Income Before Income Taxes |
|
922.1 |
|
|
640.3 |
|
|
1,693.5 |
|
|
1,248.6 |
|
||||
Income taxes |
|
201.7 |
|
|
144.8 |
|
|
372.6 |
|
|
282.3 |
|
||||
Net Income | $ |
720.4 |
|
$ |
495.5 |
|
$ |
1,320.9 |
|
$ |
966.3 |
|
||||
Net Income Per Share: | ||||||||||||||||
Basic | $ |
2.07 |
|
$ |
1.42 |
|
$ |
3.79 |
|
$ |
2.78 |
|
||||
Diluted | $ |
2.07 |
|
$ |
1.42 |
|
$ |
3.79 |
|
$ |
2.77 |
|
||||
Weighted Average Shares Outstanding: | ||||||||||||||||
Basic |
|
348.4 |
|
|
347.8 |
|
|
348.3 |
|
|
347.7 |
|
||||
Diluted |
|
348.8 |
|
|
348.5 |
|
|
348.8 |
|
|
348.5 |
|
||||
Dividends declared per share | $ |
.34 |
|
$ |
.34 |
|
$ |
.68 |
|
$ |
.66 |
|
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CONDENSED BALANCE SHEETS | ||||||||
(in millions) | ||||||||
|
|
|
||||||
2022 |
|
2021* |
||||||
ASSETS | ||||||||
Truck, Parts and Other: | ||||||||
Cash and marketable securities | $ |
4,694.3 |
|
$ |
4,813.0 |
|
||
Trade and other receivables, net |
|
1,959.7 |
|
|
1,575.1 |
|
||
Inventories, net |
|
2,232.2 |
|
|
1,976.0 |
|
||
Property, plant and equipment, net |
|
3,368.0 |
|
|
3,398.1 |
|
||
Equipment on operating leases and other, net |
|
2,293.6 |
|
|
2,328.3 |
|
||
Financial Services Assets |
|
16,040.9 |
|
|
15,418.9 |
|
||
$ |
30,588.7 |
|
$ |
29,509.4 |
|
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Truck, Parts and Other: | ||||||||
Accounts payable, deferred revenues and other | $ |
6,227.9 |
|
$ |
6,268.7 |
|
||
Financial Services Liabilities |
|
11,842.8 |
|
|
11,646.7 |
|
||
STOCKHOLDERS' EQUITY |
|
12,518.0 |
|
|
11,594.0 |
|
||
$ |
30,588.7 |
|
$ |
29,509.4 |
|
|||
Common Shares Outstanding |
|
347.7 |
|
|
347.3 |
|
* |
In the first quarter of 2022, the Company changed the method of accounting for its |
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CONDENSED CASH FLOW STATEMENTS | ||||||||
(in millions) | ||||||||
Six Months Ended |
2022 |
2021 |
||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ |
1,320.9 |
|
$ |
966.3 |
|
||
Depreciation and amortization: | ||||||||
Property, plant and equipment |
|
155.3 |
|
|
133.8 |
|
||
Equipment on operating leases and other |
|
227.3 |
|
|
348.6 |
|
||
Net change in trade receivables, inventory and payables |
|
62.3 |
|
|
(447.1 |
) |
||
Net (increase) decrease in wholesale receivables on new trucks |
|
(570.4 |
) |
|
163.4 |
|
||
All other operating activities, net |
|
(97.9 |
) |
|
(297.3 |
) |
||
Net Cash Provided by Operating Activities |
|
1,097.5 |
|
|
867.7 |
|
||
INVESTING ACTIVITIES: | ||||||||
Payments for property, plant and equipment |
|
(266.9 |
) |
|
(242.4 |
) |
||
Acquisitions of equipment for operating leases |
|
(472.4 |
) |
|
(550.9 |
) |
||
Net increase in financial services receivables |
|
(425.1 |
) |
|
(318.0 |
) |
||
Net increase in marketable debt securities |
|
(89.6 |
) |
|
(16.0 |
) |
||
Proceeds from asset disposals and other |
|
375.0 |
|
|
460.6 |
|
||
|
(879.0 |
) |
|
(666.7 |
) |
|||
FINANCING ACTIVITIES: | ||||||||
Payments of cash dividends |
|
(757.6 |
) |
|
(471.8 |
) |
||
Purchases of treasury stock |
|
(1.9 |
) |
|
(1.4 |
) |
||
Proceeds from stock compensation transactions |
|
18.4 |
|
|
30.1 |
|
||
Net increase (decrease) in debt and other |
|
395.1 |
|
|
(208.4 |
) |
||
|
(346.0 |
) |
|
(651.5 |
) |
|||
Effect of exchange rate changes on cash |
|
(69.5 |
) |
|
(19.3 |
) |
||
|
(197.0 |
) |
|
(469.8 |
) |
|||
Cash and cash equivalents at beginning of period |
|
3,428.3 |
|
|
3,539.6 |
|
||
Cash and cash equivalents at end of period | $ |
3,231.3 |
|
$ |
3,069.8 |
|
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SEGMENT AND OTHER INFORMATION |
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(in millions) |
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Three Months Ended |
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Six Months Ended |
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|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Sales and Revenues: | ||||||||||||||||
Truck | $ |
5,336.4 |
|
$ |
4,152.2 |
|
$ |
10,033.5 |
|
$ |
8,385.2 |
|
||||
Parts |
|
1,434.7 |
|
|
1,211.3 |
|
|
2,823.6 |
|
|
2,372.0 |
|
||||
Financial Services |
|
372.5 |
|
|
456.3 |
|
|
738.7 |
|
|
888.3 |
|
||||
Other |
|
15.1 |
|
|
24.1 |
|
|
35.5 |
|
|
43.9 |
|
||||
$ |
7,158.7 |
|
$ |
5,843.9 |
|
$ |
13,631.3 |
|
$ |
11,689.4 |
|
|||||
Pretax Profit: | ||||||||||||||||
Truck | $ |
422.1 |
|
$ |
256.5 |
|
$ |
698.8 |
|
$ |
526.5 |
|
||||
Parts |
|
353.3 |
|
|
266.8 |
|
|
693.5 |
|
|
518.4 |
|
||||
Financial Services |
|
144.4 |
|
|
106.5 |
|
|
291.4 |
|
|
182.9 |
|
||||
Investment Income and Other |
|
2.3 |
|
|
10.5 |
|
|
9.8 |
|
|
20.8 |
|
||||
$ |
922.1 |
|
$ |
640.3 |
|
$ |
1,693.5 |
|
$ |
1,248.6 |
|
|||||
GEOGRAPHIC REVENUE |
||||||||||||||||
(in millions) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
$ |
4,381.1 |
|
$ |
3,595.9 |
|
$ |
8,142.5 |
|
$ |
7,129.5 |
|
|||||
|
1,783.3 |
|
|
1,457.8 |
|
|
3,656.6 |
|
|
3,048.1 |
|
|||||
Other |
|
994.3 |
|
|
790.2 |
|
|
1,832.2 |
|
|
1,511.8 |
|
||||
$ |
7,158.7 |
|
$ |
5,843.9 |
|
$ |
13,631.3 |
|
$ |
11,689.4 |
|
|||||
NEW TRUCK DELIVERIES |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
24,400 |
|
|
22,600 |
|
|
45,100 |
|
|
45,600 |
|
|||||
|
15,400 |
|
|
11,800 |
|
|
31,500 |
|
|
25,500 |
|
|||||
Other |
|
7,100 |
|
|
5,700 |
|
|
13,300 |
|
|
11,200 |
|
||||
|
46,900 |
|
|
40,100 |
|
|
89,900 |
|
|
82,300 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220726005305/en/
(425) 468-7530
ken.hastings@paccar.com
Source:
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