PACCAR Achieves Very Good Quarterly Revenues and Profits
PACCAR (Nasdaq: PCAR) reported strong Q1 2021 results, with revenues of $5.85 billion and net income of $470.1 million, marking a 31% increase year-over-year. Key highlights include record PACCAR Parts sales of $1.16 billion, contributing to pretax profits of $251.3 million. The company also witnessed a 300% increase in Class 8 truck orders and launched new truck models with enhanced features and fuel efficiency. PACCAR Financial Services reported revenues of $432 million and pretax profits of $76.4 million, driven by a robust loan and lease business. The company maintains a strong balance sheet with significant investments in R&D and capital expenditures.
- Q1 2021 revenues increased to $5.85 billion, up from $5.16 billion in Q1 2020.
- Net income rose to $470.1 million, a 31% increase year-over-year.
- Record PACCAR Parts revenues of $1.16 billion and pretax profits of $251.3 million.
- PACCAR Financial Services generated $432 million in revenues, with pretax profits of $76.4 million.
- Class 8 truck orders surged nearly 300% compared to Q1 2020.
- Semiconductor supply issues are affecting truck deliveries.
“PACCAR (Nasdaq: PCAR) reported very good revenues and net income for the first quarter of 2021,” said Preston Feight, chief executive officer. “PACCAR Parts achieved record quarterly sales and profits due to robust freight activity, high truck utilization, investments in distribution and innovative technology such as its e-commerce platform. PACCAR Financial Services increased its profitability due to excellent portfolio quality and strong used truck demand. I am very proud of our employees and their dedication to delivering the highest quality products and services to our customers.”
Next Generation Kenworth T680 and Peterbilt Model 579 Trucks (Photo: Business Wire)
Feight added, “Customer demand for Kenworth, Peterbilt and DAF trucks is very strong. Truck deliveries increased in the first quarter of 2021 compared to the fourth quarter of 2020 despite the undersupply of semiconductors affecting the automotive industry. Peterbilt and Kenworth launched exciting new heavy- and medium-duty truck models, which deliver enhanced fuel efficiency, Advanced Driver Assistance Systems (ADAS) and superb driver comfort. In addition, DAF began producing CF Electric trucks this month.”
First quarter 2021 revenues increased to
Highlights – First Quarter 2021
Highlights of PACCAR’s financial results during the first quarter of 2021 include:
-
Consolidated net sales and revenues of
$5.85 billion . -
Net income of
$470.1 million . -
Record PACCAR Parts revenues of
$1.16 billion . -
Record PACCAR Parts pretax profits of
$251.3 million . -
PACCAR Financial Services revenues of
$432.0 million and pretax profits of$76.4 million . -
Research and development expenses of
$80.1 million . -
Capital investments of
$94.2 million . -
Cash flow from operations of
$536.9 million . -
Manufacturing cash and marketable securities of
$4.65 billion . -
Stockholders’ equity of
$10.72 billion .
Global Truck Markets
Harrie Schippers, president and chief financial officer, said, “Freight tonnage is strong as the U.S. economy continues to grow. Kenworth and Peterbilt’s U.S. and Canada Class 8 truck orders increased nearly
DAF achieved a robust
DAF Brasil’s market share was a strong
Kenworth and Peterbilt Launch New Flagship Class 8 Truck Models
Next generation Kenworth T680 and Peterbilt Model 579 Class 8 trucks were unveiled in the first quarter, offering major enhancements in uptime, connectivity technology, aerodynamics, fuel-efficiency and driver comfort. Mike Dozier, senior vice president, noted, “The new Kenworth T680 and Peterbilt Model 579 are the most aerodynamic trucks in company history. Fleet operators and drivers will appreciate the quieter cab, customizable 15” digital display, and new ADAS technology to enhance safety.” The next generation vehicles feature new exterior designs with an optimized aerodynamic shape, and PACCAR MX-13 and MX-11 engines with the integrated PACCAR transmission, which deliver up to
Kenworth and Peterbilt Launch New Medium-Duty Truck Models
This month Peterbilt and Kenworth introduced new Class 5-7 truck models with best-in-class features including an eight inch wider cab with three-person seating, a lower cab for improved ingress and egress, up to
PACCAR Parts Achieves Record Quarterly Sales and Profit
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.
PACCAR Launches Electric Truck Production
DAF began producing CF Electric trucks this month. Kenworth and Peterbilt will launch zero emissions truck production in the coming months.
PACCAR has defined a robust vehicle electrification strategy that it is implementing in phases, from vehicle testing through high volume production. The company is completing a successful validation phase, in which Kenworth, Peterbilt and DAF completed over 500,000 miles of field testing on more than 60 vehicles. This quarter PACCAR began the next phase, which is producing battery electric customer trucks for applications such as port, refuse and local delivery. In these applications, trucks return to their depot each day for recharging and have an optimized range to limit battery weight and cost.
An important element of PACCAR’s electrification strategy is securing multiple technology partners. PACCAR offers customers battery packs from leading battery suppliers CATL and Romeo Power to ensure customers receive the optimal technology for their specific application. “PACCAR’s range of zero emissions products allows the customer to select the best technology solution for their business,” said Kyle Quinn, senior vice president.
PACCAR Financial Services Achieves Increased Profits and Strong New Business
PACCAR Financial Services (PFS) has a portfolio of 203,000 trucks and trailers, with total assets of
Ken Roemer, PacLease president, commented, “The semiconductor undersupply issue has a silver lining by increasing the demand for readily available used trucks. Customers who require trucks are pleased to purchase high quality pre-owned Kenworth and Peterbilt vehicles.”
“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
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
PACCAR will hold a conference call with securities analysts to discuss first quarter earnings on April 27, 2021, at 8:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q1 Earnings Webcast” at PACCAR’s homepage. The Webcast will be available on a recorded basis through May 4, 2021. PACCAR shares are traded 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 this release 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 |
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(in millions except per share amounts) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
March 31 |
||||||
|
|
2021 |
|
2020 |
||||
| Truck, Parts and Other: | ||||||||
| Net sales and revenues | $ |
5,413.5 |
|
$ |
4,778.0 |
|
||
| Cost of sales and revenues |
|
4,690.7 |
|
|
4,189.6 |
|
||
| Research and development |
|
80.1 |
|
|
71.0 |
|
||
| Selling, general and administrative |
|
129.9 |
|
|
131.4 |
|
||
| Interest and other (income), net |
|
(13.2 |
) |
|
(13.1 |
) |
||
| Truck, Parts and Other Income Before Income Taxes |
|
526.0 |
|
|
399.1 |
|
||
| Financial Services: | ||||||||
| Revenues |
|
432.0 |
|
|
383.7 |
|
||
| Interest and other |
|
320.7 |
|
|
285.8 |
|
||
| Selling, general and administrative |
|
31.2 |
|
|
32.6 |
|
||
| Provision for losses on receivables |
|
3.7 |
|
|
17.0 |
|
||
| Financial Services Income Before Income Taxes |
|
76.4 |
|
|
48.3 |
|
||
| Investment income |
|
4.9 |
|
|
14.8 |
|
||
| Total Income Before Income Taxes |
|
607.3 |
|
|
462.2 |
|
||
| Income taxes |
|
137.2 |
|
|
102.8 |
|
||
| Net Income | $ |
470.1 |
|
$ |
359.4 |
|
||
| Net Income Per Share: | ||||||||
| Basic | $ |
1.35 |
|
$ |
1.04 |
|
||
| Diluted | $ |
1.35 |
|
$ |
1.03 |
|
||
| Weighted Average Shares Outstanding: | ||||||||
| Basic |
|
347.6 |
|
|
346.9 |
|
||
| Diluted |
|
348.4 |
|
|
347.3 |
|
||
| Dividends declared per share | $ |
.32 |
|
$ |
.32 |
|
||
PACCAR Inc |
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CONDENSED BALANCE SHEETS |
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(in millions) |
||||||
|
|
|
|
|
||
|
|
March 31 |
|
December 31 |
||
|
|
2021 |
|
2020 |
||
| ASSETS | ||||||
| Truck, Parts and Other: | ||||||
| Cash and marketable debt securities | $ |
4,651.1 |
$ |
4,834.0 |
||
| Trade and other receivables, net |
|
1,649.9 |
|
1,197.5 |
||
| Inventories, net |
|
1,465.4 |
|
1,221.9 |
||
| Property, plant and equipment, net |
|
3,242.5 |
|
3,270.4 |
||
| Equipment on operating leases and other, net |
|
1,960.5 |
|
1,936.4 |
||
| Financial Services Assets |
|
15,534.0 |
|
15,799.8 |
||
$ |
28,503.4 |
$ |
28,260.0 |
|||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Truck, Parts and Other: | ||||||
| Accounts payable, deferred revenues and other | $ |
5,823.4 |
$ |
5,601.1 |
||
| Financial Services Liabilities |
|
11,962.3 |
|
12,268.9 |
||
| STOCKHOLDERS' EQUITY |
|
10,717.7 |
|
10,390.0 |
||
$ |
28,503.4 |
$ |
28,260.0 |
|||
| Common Shares Outstanding |
|
347.2 |
|
346.6 |
||
PACCAR Inc |
||||||||
CONDENSED CASH FLOW STATEMENTS |
||||||||
(in millions) |
||||||||
| Three Months Ended March 31 | 2021 |
2020 |
||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ |
470.1 |
|
$ |
359.4 |
|
||
| Depreciation and amortization: | ||||||||
| Property, plant and equipment |
|
66.9 |
|
|
70.0 |
|
||
| Equipment on operating leases and other |
|
184.8 |
|
|
202.0 |
|
||
| Net change in trade receivables, inventory and payables |
|
(82.3 |
) |
|
(193.9 |
) |
||
| Net decrease (increase) in wholesale receivables on new trucks |
|
26.8 |
|
|
(6.8 |
) |
||
| All other operating activities, net |
|
(129.4 |
) |
|
(4.8 |
) |
||
| Net Cash Provided by Operating Activities |
|
536.9 |
|
|
425.9 |
|
||
| INVESTING ACTIVITIES: | ||||||||
| Payments for property, plant and equipment |
|
(114.6 |
) |
|
(176.4 |
) |
||
| Acquisitions of equipment for operating leases |
|
(243.1 |
) |
|
(280.1 |
) |
||
| Net increase in financial services receivables |
|
(81.3 |
) |
|
(94.2 |
) |
||
| Net (increase) decrease in marketable debt securities |
|
(4.8 |
) |
|
40.5 |
|
||
| Proceeds from asset disposals and other |
|
228.1 |
|
|
130.4 |
|
||
| Net Cash Used in Investing Activities |
|
(215.7 |
) |
|
(379.8 |
) |
||
| FINANCING ACTIVITIES: | ||||||||
| Payments of cash dividends |
|
(353.7 |
) |
|
(907.4 |
) |
||
| Purchases of treasury stock |
|
(1.4 |
) |
|
(41.5 |
) |
||
| Proceeds from stock compensation transactions |
|
28.8 |
|
|
6.3 |
|
||
| Net (decrease) increase in debt and other |
|
(182.0 |
) |
|
108.9 |
|
||
| Net Cash Used in Financing Activities |
|
(508.3 |
) |
|
(833.7 |
) |
||
| Effect of exchange rate changes on cash |
|
(32.5 |
) |
|
(64.4 |
) |
||
| Net Decrease in Cash and Cash Equivalents |
|
(219.6 |
) |
|
(852.0 |
) |
||
| Cash and cash equivalents at beginning of period |
|
3,539.6 |
|
|
4,175.1 |
|
||
| Cash and cash equivalents at end of period | $ |
3,320.0 |
|
$ |
3,323.1 |
|
||
PACCAR Inc |
||||||
SEGMENT AND OTHER INFORMATION |
||||||
(in millions) |
||||||
Three Months Ended |
||||||
March 31 |
||||||
2021 |
|
2020 |
||||
| Sales and Revenues: | ||||||
| Truck | $ |
4,233.0 |
$ |
3,757.6 |
||
| Parts |
|
1,160.7 |
|
998.6 |
||
| Financial Services |
|
432.0 |
|
383.7 |
||
| Other |
|
19.8 |
|
21.8 |
||
$ |
5,845.5 |
$ |
5,161.7 |
|||
| Pretax Profit: | ||||||
| Truck | $ |
269.5 |
$ |
183.1 |
||
| Parts |
|
251.3 |
|
214.7 |
||
| Financial Services |
|
76.4 |
|
48.3 |
||
| Investment Income and Other |
|
10.1 |
|
16.1 |
||
$ |
607.3 |
$ |
462.2 |
|||
GEOGRAPHIC REVENUE |
||||||
(in millions) |
||||||
|
|
|
|
|
||
|
|
Three Months Ended |
||||
|
|
March 31 |
||||
|
|
|
2021 |
|
|
2020 |
| United States and Canada | $ |
3,533.6 |
$ |
3,330.1 |
||
| Europe |
|
1,590.3 |
|
1,260.1 |
||
| Other |
|
721.6 |
|
571.5 |
||
$ |
5,845.5 |
$ |
5,161.7 |
|||
NEW TRUCK DELIVERIES |
||||||
|
|
|
|
|
||
|
|
Three Months Ended |
||||
|
|
March 31 |
||||
|
|
|
2021 |
|
|
2020 |
| United States and Canada |
|
23,000 |
|
22,200 |
||
| Europe |
|
13,700 |
|
11,600 |
||
| Other |
|
5,500 |
|
4,600 |
||
|
42,200 |
|
38,400 |
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210427005360/en/
FAQ
What were PACCAR's Q1 2021 financial results?
How did PACCAR Parts perform in Q1 2021?
What is the truck order increase for PACCAR in Q1 2021?
What are PACCAR's projections for Class 8 truck sales in 2021?
How has PACCAR Financial Services performed recently?
