PACCAR Achieves Very Good Quarterly Revenues and Profits
PACCAR reported strong financial results for Q2 2021, with net income of $492.9 million ($1.41 per diluted share), a significant rise from $147.7 million in Q2 2020. Total net sales reached $5.84 billion, a 91% increase year-over-year. Record revenues were achieved in PACCAR Parts, totaling $1.21 billion, driven by high truck utilization and e-commerce growth. In the first half of 2021, net income increased to $963.0 million, and the company declared a quarterly dividend of $0.34 per share. Strong customer demand for new models, including DAF’s new trucks, reflects positive market conditions.
- Net income increased to $492.9 million in Q2 2021, up from $147.7 million in Q2 2020.
- Net sales reached $5.84 billion in Q2 2021, a 91% year-over-year increase.
- Record revenues of $1.21 billion for PACCAR Parts due to strong truck utilization.
- Strong customer demand for new DAF truck models, enhancing market position.
- PACCAR Financial Services achieved record pretax income of $106.5 million.
- Global truck deliveries were impacted by a semiconductor chip shortage, with 6,500 trucks awaiting components at quarter-end.
“PACCAR achieved very good revenues and net income in the second quarter of 2021,” said Preston Feight, chief executive officer. “PACCAR Parts achieved record quarterly sales and profits due to strong industry truck utilization, an increased number of Kenworth, Peterbilt and DAF trucks with the PACCAR Powertrain, and the growth of PACCAR Parts’ e-commerce platform. PACCAR Financial Services earned record quarterly profits due to excellent portfolio quality and strong used truck demand. I am very proud of our employees for delivering the highest quality products and services to our customers.”
New DAF XG+ Truck (Photo: Business Wire)
“DAF launched new, industry-leading heavy truck models in June. The new DAF XF, XG and XG+ trucks represent a
Darrin Siver, senior vice president, said, “Kenworth and Peterbilt launched new heavy- and medium-duty vehicles earlier this year. Production started in May of the new Kenworth T680 and Peterbilt 579 trucks and medium-duty truck production will begin in the third quarter. Customer demand is very strong.”
PACCAR earned net income of
PACCAR reported first half net income of
Quarterly Dividend
PACCAR’s Board of Directors declared a regular quarterly cash dividend of thirty-four cents ($.34) per share, payable on September 8, 2021, to stockholders of record at the close of business on August 18, 2021.
Financial Highlights – Second Quarter 2021
Highlights of PACCAR’s financial results for the second quarter of 2021 include:
-
Net sales and revenues of
$5.84 billion . -
Net income of
$492.9 million . - Global truck deliveries of 40,100 units.
-
Record PACCAR Parts revenues of
$1.21 billion . -
Record PACCAR Parts pretax income of
$265.6 million . -
Record Financial Services pretax income of
$106.5 million . -
Manufacturing cash and marketable securities of
$4.4 billion . -
Cash generated from operations of
$330.8 million . -
Stockholders’ equity of
$11.18 billion .
Financial Highlights – First Half 2021
Highlights of PACCAR’s financial results for the first six months of 2021 include:
-
Net sales and revenues of
$11.69 billion . -
Net income of
$963.0 million . -
Capital investments of
$214.4 million and R&D expenses of$164.5 million . -
PACCAR Parts pretax income of
$516.9 million . -
Financial Services pretax income of
$182.9 million . -
Cash generated from operations of
$867.7 million . -
Medium-term note issuances of
$1.30 billion .
Global Truck Markets
Mike Dozier, senior vice president, said, “Freight tonnage, industry truck utilization and customer demand for new trucks are strong. Customers appreciate the enhanced fuel efficiency and advanced technology in Kenworth and Peterbilt’s new heavy- and medium-duty trucks launched this year.” Class 8 industry retail sales in the U.S. and Canada are estimated to be in a range of 260,000-280,000 trucks in 2021. Kenworth and Peterbilt’s Class 8 retail sales market share is
“Customer demand is strong for the new range of DAF trucks due to the vehicles’ innovative design, increased fuel efficiency and enhanced driver comfort,” noted Harry Wolters, DAF president. European truck industry registrations in the above 16-tonne segment are estimated to be in a range of 270,000-290,000 vehicles this year. DAF European above 16-tonne registrations market share is
The 2021 South American above 16-tonne truck market is projected to be in the range of 110,000-120,000 units. DAF Brasil’s market share was
The truck markets are tempered by the industry-wide undersupply of semiconductor chips. Kenworth, Peterbilt and DAF delivered 40,100 trucks in the second quarter, with an additional 6,500 trucks awaiting components at quarter-end.
DAF Launches New Aerodynamic Truck Models
The new DAF XF, XG and XG+ feature new aerodynamic cabs, exceptional quality, enhanced fuel efficiency, a full suite of passive and active safety technologies, and a spacious and luxurious interior. DAF’s XG and XG+ create a new premium market segment and provide unmatched comfort for the driver.
DAF’s innovative cab designs deliver up to
PACCAR Parts Achieves Record Quarterly Revenues and Profits
PACCAR Parts earned record quarterly pretax income of
PACCAR Parts 18 parts distribution centers (PDCs) support more than 2,200 DAF, Kenworth and Peterbilt dealer sales, parts and service locations. PACCAR Parts plans to open a new 260,000 square foot PDC in Louisville, Kentucky next year to further enhance parts availability for customers and dealers.
Financial Services Companies Achieve Record Results
PACCAR Financial Services (PFS) earned record pretax income of
PFS has a portfolio of 205,000 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 commercial paper on a regular basis and
Peterbilt, Kenworth and DAF Begin Battery-Electric Vehicle Production
Peterbilt, Kenworth and DAF began production of battery electric trucks in the second quarter. PACCAR has received customer orders for over 450 zero emissions vehicles. “PACCAR is the leader in zero emissions trucks. Industry zero emissions vehicle deliveries are expected to gradually increase in the coming years,” said John Rich, PACCAR chief technology officer. “PACCAR’s battery electric vehicles will contribute to PACCAR and its customers achieving their environmental goals.”
PACCAR Capital Investments and R&D Drive Innovation and Growth
PACCAR’s excellent long-term profits, strong balance sheet, and consistent focus on quality, technology and productivity have enabled the company to invest
PACCAR will hold a conference call with securities analysts to discuss second quarter earnings on July 27, 2021, 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 August 3, 2021. 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 | |||||||||||||
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
||
| Truck, Parts and Other: | ||||||||||||||
| Net sales and revenues | $ |
5,387.6 |
|
$ |
2,701.9 |
|
$ |
10,801.1 |
|
$ |
7,479.9 |
|
||
| Cost of sales and revenues |
|
4,662.7 |
|
|
2,441.5 |
|
|
9,353.4 |
|
|
6,631.1 |
|
||
| Research and development |
|
84.4 |
|
|
66.5 |
|
|
164.5 |
|
|
137.5 |
|
||
| Selling, general and administrative |
|
132.2 |
|
|
93.9 |
|
|
262.1 |
|
|
225.3 |
|
||
| Interest and other (income), net |
|
(17.2 |
) |
|
(19.5 |
) |
|
(30.4 |
) |
|
(32.6 |
) |
||
| Truck, Parts and Other Income Before Income Taxes |
|
525.5 |
|
|
119.5 |
|
|
1,051.5 |
|
|
518.6 |
|
||
| Financial Services: | ||||||||||||||
| Revenues |
|
456.3 |
|
|
360.3 |
|
|
888.3 |
|
|
744.0 |
|
||
| Interest and other |
|
318.1 |
|
|
271.0 |
|
|
638.8 |
|
|
556.8 |
|
||
| Selling, general and administrative |
|
32.2 |
|
|
26.3 |
|
|
63.4 |
|
|
58.9 |
|
||
| Provision for losses on receivables |
|
(.5 |
) |
|
7.5 |
|
|
3.2 |
|
|
24.5 |
|
||
| Financial Services Income Before Income Taxes |
|
106.5 |
|
|
55.5 |
|
|
182.9 |
|
|
103.8 |
|
||
| Investment income |
|
5.0 |
|
|
9.0 |
|
|
9.9 |
|
|
23.8 |
|
||
| Total Income Before Income Taxes |
|
637.0 |
|
|
184.0 |
|
|
1,244.3 |
|
|
646.2 |
|
||
| Income taxes |
|
144.1 |
|
|
36.3 |
|
|
281.3 |
|
|
139.1 |
|
||
| Net Income | $ |
492.9 |
|
$ |
147.7 |
|
$ |
963.0 |
|
$ |
507.1 |
|
||
| Net Income Per Share: | ||||||||||||||
| Basic | $ |
1.42 |
|
$ |
.43 |
|
$ |
2.77 |
|
$ |
1.46 |
|
||
| Diluted | $ |
1.41 |
|
$ |
.43 |
|
$ |
2.76 |
|
$ |
1.46 |
|
||
| Weighted Average Shares Outstanding: | ||||||||||||||
| Basic |
|
347.8 |
|
|
346.4 |
|
|
347.7 |
|
|
346.7 |
|
||
| Diluted |
|
348.5 |
|
|
346.8 |
|
|
348.5 |
|
|
347.1 |
|
||
| Dividends declared per share | $ |
.34 |
|
$ |
.32 |
|
$ |
.66 |
|
$ |
.64 |
|
||
| PACCAR Inc | |||||||
| CONDENSED BALANCE SHEETS | |||||||
| (in millions) | |||||||
| June 30 | December 31 | ||||||
|
2021 |
|
2020 |
||||
| ASSETS | |||||||
| Truck, Parts and Other: | |||||||
| Cash and marketable securities | $ |
4,403.3 |
$ |
4,834.0 |
|||
| Trade and other receivables, net |
|
1,525.7 |
|
1,197.5 |
|||
| Inventories, net |
|
2,054.6 |
|
1,221.9 |
|||
| Property, plant and equipment, net |
|
3,318.5 |
|
3,270.4 |
|||
| Equipment on operating leases and other, net |
|
2,144.3 |
|
1,936.4 |
|||
| Financial Services Assets |
|
15,565.8 |
|
15,799.8 |
|||
$ |
29,012.2 |
$ |
28,260.0 |
||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Truck, Parts and Other: | |||||||
| Accounts payable, deferred revenues and other | $ |
5,881.4 |
$ |
5,601.1 |
|||
| Financial Services Liabilities |
|
11,947.0 |
|
12,268.9 |
|||
| STOCKHOLDERS' EQUITY |
|
11,183.8 |
|
10,390.0 |
|||
$ |
29,012.2 |
$ |
28,260.0 |
||||
| Common Shares Outstanding |
|
347.2 |
|
346.6 |
|||
| PACCAR Inc | |||||||
| CONDENSED CASH FLOW STATEMENTS | |||||||
| (in millions) | |||||||
| Six Months Ended June 30 |
|
2021 |
|
|
2020 |
|
|
| OPERATING ACTIVITIES: | |||||||
| Net income | $ |
963.0 |
|
$ |
507.1 |
|
|
| Depreciation and amortization: | |||||||
| Property, plant and equipment |
|
133.8 |
|
|
122.4 |
|
|
| Equipment on operating leases and other |
|
348.6 |
|
|
390.9 |
|
|
| Net change in trade receivables, inventory and payables |
|
(442.8 |
) |
|
(218.3 |
) |
|
| Net decrease in wholesale receivables on new trucks |
|
163.4 |
|
|
694.7 |
|
|
| All other operating activities, net |
|
(298.3 |
) |
|
(136.0 |
) |
|
| Net Cash Provided by Operating Activities |
|
867.7 |
|
|
1,360.8 |
|
|
| INVESTING ACTIVITIES: | |||||||
| Payments for property, plant and equipment |
|
(242.4 |
) |
|
(312.2 |
) |
|
| Acquisitions of equipment for operating leases |
|
(550.9 |
) |
|
(439.6 |
) |
|
| Net increase in financial services receivables |
|
(318.0 |
) |
|
(113.9 |
) |
|
| Net (increase) decrease in marketable debt securities |
|
(16.0 |
) |
|
11.7 |
|
|
| Proceeds from asset disposals and other |
|
460.6 |
|
|
259.9 |
|
|
| Net Cash Used in Investing Activities |
|
(666.7 |
) |
|
(594.1 |
) |
|
| FINANCING ACTIVITIES: | |||||||
| Payments of cash dividends |
|
(471.8 |
) |
|
(1,018.0 |
) |
|
| Purchases of treasury stock |
|
(1.4 |
) |
|
(41.6 |
) |
|
| Proceeds from stock compensation transactions |
|
30.1 |
|
|
11.3 |
|
|
| Net decrease in debt and other |
|
(208.4 |
) |
|
(730.1 |
) |
|
| Net Cash Used in Financing Activities |
|
(651.5 |
) |
|
(1,778.4 |
) |
|
| Effect of exchange rate changes on cash |
|
(19.3 |
) |
|
(35.4 |
) |
|
| Net Decrease in Cash and Cash Equivalents |
|
(469.8 |
) |
|
(1,047.1 |
) |
|
| Cash and cash equivalents at beginning of period |
|
3,539.6 |
|
|
4,175.1 |
|
|
| Cash and cash equivalents at end of period | $ |
3,069.8 |
|
$ |
3,128.0 |
|
|
| PACCAR Inc | ||||||||||||
| SEGMENT AND OTHER INFORMATION | ||||||||||||
| (in millions) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
|
2021 |
|
2020 |
|
|
|
2021 |
|
2020 |
|||
| Sales and Revenues: | ||||||||||||
| Truck | $ |
4,152.2 |
$ |
1,858.4 |
|
$ |
8,385.2 |
$ |
5,616.0 |
|||
| Parts |
|
1,211.3 |
|
823.7 |
|
|
2,372.0 |
|
1,822.3 |
|||
| Financial Services |
|
456.3 |
|
360.3 |
|
|
888.3 |
|
744.0 |
|||
| Other |
|
24.1 |
|
19.8 |
|
|
43.9 |
|
41.6 |
|||
$ |
5,843.9 |
$ |
3,062.2 |
|
$ |
11,689.4 |
$ |
8,223.9 |
||||
| Pretax Profit (Loss): | ||||||||||||
| Truck | $ |
255.0 |
$ |
(46.2 |
) |
$ |
524.5 |
$ |
136.9 |
|||
| Parts |
|
265.6 |
|
151.9 |
|
|
516.9 |
|
366.6 |
|||
| Financial Services |
|
106.5 |
|
55.5 |
|
|
182.9 |
|
103.8 |
|||
| Investment Income and Other |
|
9.9 |
|
22.8 |
|
|
20.0 |
|
38.9 |
|||
$ |
637.0 |
$ |
184.0 |
|
$ |
1,244.3 |
$ |
646.2 |
||||
| GEOGRAPHIC REVENUE | ||||||||||||
| (in millions) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
|
2021 |
|
2020 |
|
|
|
2021 |
|
2020 |
|||
| United States and Canada | $ |
3,595.9 |
$ |
1,845.9 |
|
$ |
7,129.5 |
$ |
5,176.0 |
|||
| Europe |
|
1,457.8 |
|
857.9 |
|
|
3,048.1 |
|
2,118.0 |
|||
| Other |
|
790.2 |
|
358.4 |
|
|
1,511.8 |
|
929.9 |
|||
$ |
5,843.9 |
$ |
3,062.2 |
|
$ |
11,689.4 |
$ |
8,223.9 |
||||
| NEW TRUCK DELIVERIES | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
|
2021 |
|
2020 |
|
|
|
2021 |
|
2020 |
|||
| United States and Canada |
|
22,600 |
|
9,300 |
|
|
45,600 |
|
31,500 |
|||
| Europe |
|
11,800 |
|
6,400 |
|
|
25,500 |
|
18,000 |
|||
| Other |
|
5,700 |
|
2,400 |
|
|
11,200 |
|
7,000 |
|||
|
40,100 |
|
18,100 |
|
|
82,300 |
|
56,500 |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210727005328/en/
FAQ
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