Record PACCAR Parts and PACCAR Financial
Profits Drive Results
“PACCAR reported good revenues and net income for the third
quarter of 2021,” said Preston Feight, chief executive officer.
“PACCAR’s third quarter results reflect PACCAR Parts and PACCAR
Financial Services record profits. Customer demand for the new
Kenworth, Peterbilt and DAF trucks introduced this year is very
strong. Kenworth, Peterbilt and DAF delivered 32,800 trucks in the
third quarter even as the ongoing industry-wide undersupply of
semiconductors reduced PACCAR’s truck deliveries by approximately
7,000 vehicles. PACCAR expects global truck production to improve
as supply chain deliveries are resolved. I am very proud of our
employees for delivering the highest quality products and services
to our customers.”
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Peterbilt 579 Truck (Photo: Business
Wire)
PACCAR achieved net income of $377.7 million ($1.08 per diluted
share) in the third quarter of this year, compared to $385.5
million ($1.11 per diluted share) earned in the same period last
year. Third quarter revenues were $5.15 billion, compared to $4.94
billion reported in the third quarter of 2020. PACCAR earned
$1,340.7 million ($3.85 per diluted share) for the first nine
months of 2021 compared to $892.6 million ($2.57 per diluted share)
in the same period last year. Net revenues for the first nine
months of 2021 were $16.84 billion compared to $13.16 billion last
year.
Financial Highlights – Third Quarter 2021
Highlights of PACCAR’s financial results for the third quarter
of 2021 include:
- Net sales and revenues of $5.15 billion.
- Net income of $377.7 million.
- Global truck deliveries of 32,800 units.
- Record PACCAR Parts revenues of $1.26 billion.
- Record PACCAR Parts pretax income of $280.8 million.
- Record Financial Services pretax income of $120.1 million.
- Manufacturing cash and marketable securities of $3.65
billion.
- Cash generated from operations of $282.5 million.
- Stockholders’ equity of $11.33 billion.
Financial Highlights – Nine Months 2021
Highlights of PACCAR’s financial results for the first nine
months of 2021 include:
- Net sales and revenues of $16.84 billion.
- Net income of $1.34 billion.
- PACCAR Parts pretax income of $797.7 million
- Financial Services pretax income of $303.0 million.
- Capital investments of $347.4 million and R&D expenses of
$237.0 million.
- Cash generated from operations of $1.15 billion.
Global Truck Markets
“U.S. economic growth is being led by the manufacturing, housing
and consumer spending sectors,” said Mike Dozier, PACCAR senior
vice president. U.S. and Canada Class 8 truck industry retail sales
are estimated to be in a range of 230,000-250,000 vehicles in 2021.
Class 8 truck industry retail sales for 2022 are estimated to be in
a range of 250,000-290,000 vehicles, and assumes improvement in the
supply chain.
The European truck industry registrations in the above 16-tonne
segment are estimated to be in the range of 260,000-280,000 units
this year. The market is expected to be in the range of
260,000-300,000 trucks in 2022. Harry Wolters, DAF president, said,
“DAF vehicles deliver excellent reliability, fuel efficiency and
driver comfort to our customers.” The DAF XF was named the U.K.
Fleet Truck of the Year for the third consecutive year at the
prestigious Motor Transport Awards.
The 2021 South American above 16-tonne truck market is projected
to increase to a range of 120,000-130,000 units. DAF Brasil’s
market share was 5.6% in the above 16-tonne truck segment in the
first nine months of this year. The South American above 16-tonne
truck market is estimated to be in a range of 130,000-140,000
trucks in 2022. DAF was honored by the vehicle industry group
FENABRAVE as the Brasil “Brand of the Year” for the fourth
year.
Kenworth, Peterbilt and DAF New Trucks
Peterbilt and Kenworth began production of the next generation
Peterbilt 579 and Kenworth T680 trucks in the third quarter. The
new vehicles were announced earlier this year and feature new
exterior designs with an optimized aerodynamic shape and are
powered by the PACCAR MX-13 and MX-11 engines with the integrated
PACCAR transmission. The new trucks deliver up to a 7% increase in
fuel efficiency. The vehicles feature a quieter cab, customizable
15” digital display, connectivity technology and new ADAS safety
features. “The industry-leading technologies in the new Peterbilt
and Kenworth trucks will deliver improved productivity to our
customers’ operations,” said Jason Skoog, Peterbilt general manager
and PACCAR vice president.
DAF began producing its new DAF XF, XG and XG+ trucks this
month. “Customers have ordered more than 10,000 of the new DAF
trucks since the launch in June,” said Harry Wolters, DAF
president. “The new DAF trucks provide unsurpassed performance
including a 10% fuel efficiency gain, side view cameras, larger
interior space and a customizable digital dashboard. The trucks’
streamlined silhouette incorporates the new European regulations
governing truck design.”
Peterbilt and Kenworth began production of their new medium-duty
trucks in the third quarter. The new Class 5-7 vehicles feature
best-in-class attributes including an eight-inch wider cab with
three-person seating, improved ingress and egress, 50% reduced
interior noise and enhanced driver visibility. Medium-duty PACCAR
PX-7 or PX-9 engines are paired with the newly introduced 8-speed
automatic PACCAR TX-8 transmission to provide up to 350 horsepower
and 1,000 lb.-ft. of torque. “The new Kenworth and Peterbilt
medium-duty trucks have set an industry standard for quality,
reliability, durability and performance for our customers,” said
Kevin Baney, Kenworth general manager and PACCAR vice
president.
PACCAR Electric Vehicle Leadership
Peterbilt, Kenworth and DAF are zero emissions industry leaders
with seven battery electric vehicle models now available for
customers. PACCAR’s battery electric heavy- and medium-duty
vehicles provide competitive total cost of ownership for customers
operating in city and regional haul, port drayage and refuse
applications.
Peterbilt delivered ten Model 579EV battery electric trucks in
the third quarter which will operate at the Port of Oakland and
will deliver five more Peterbilt 579EVs in the fourth quarter to
the Port of Long Beach. Kenworth delivered ten T680E hydrogen fuel
cell trucks to the Port of Los Angeles for field trials with
partners Shell, Toyota and UPS. “Kenworth and Peterbilt’s battery
electric and hydrogen vehicles are at work with our customers in a
variety of applications,” said Darrin Siver, PACCAR senior vice
president.
PACCAR, Aurora and FedEx Launch Autonomous Truck
Program
PACCAR is collaborating with Aurora, a leading autonomous
driving technology company, and FedEx, one of the largest
transportation and logistics companies in the world, and has
launched a commercial test program of autonomous trucks in linehaul
trucking operations.
PACCAR’s autonomous enabled trucks configured with the Aurora
Driver are hauling FedEx loads between Dallas and Houston, a
500-mile round trip, along the I-45 corridor. The trucks operate
autonomously, with a backup driver for additional safety. “PACCAR
is pleased to partner with industry leaders FedEx and Aurora on
this innovative project,” said John Rich, PACCAR chief technology
officer. “This new collaboration demonstrates the excellent
progress that PACCAR and Aurora are making in our strategic
alliance,” added Rich.
Kenworth, Peterbilt and DAF Launch State-of-the-Art Connected
Services
PACCAR Connect is a new state-of-the-art global connected truck
platform. This configurable system consists of proprietary hardware
and software that provides robust data security, over the air
software updates, and advanced fleet management tools, while
enabling customers to cost effectively integrate their existing
fleet management systems and applications. PACCAR began installing
PACCAR Connect on DAF XF, XG and XG+ trucks in October. “Customers
will benefit from the simplification of their fleet management
operations. The new system will enhance our customers’ experience
and deliver ongoing revenues,” noted Bart Lore, PACCAR senior
director of connected services.
Capital Investment and Research and Development
PACCAR’s excellent long-term profits, strong balance sheet and
consistent focus on quality have enabled the company to invest $7.3
billion in new and expanded facilities, innovative products and new
technologies during the past decade. Capital investments are
estimated to be $525-$550 million, and research and development
expenses are expected to be $320-$330 million in 2021. PACCAR
estimates that it will invest $425-$475 million in capital
projects, and $350-$400 million in research and development
expenses next year.
“PACCAR is investing in clean diesel and zero emissions
powertrain technologies, autonomous systems, connected vehicle
services, next-generation manufacturing and distribution
capabilities,” said Harrie Schippers, PACCAR president and chief
financial officer.
PACCAR Parts Achieves Record Revenues and Pretax
Profits
PACCAR Parts achieved record pretax profit of $280.8 million in
the third quarter of 2021, a 34% increase compared to $210.2
million earned in the third quarter of 2020. Third quarter 2021
revenues were a record $1.26 billion, compared to the $1.02 billion
achieved in the third quarter last year. PACCAR Parts achieved
pretax profit of $797.7 million in the first nine months of 2021, a
38% increase compared to $576.8 million in the first nine months of
2020. PACCAR Parts’ nine-month revenues were $3.63 billion,
compared to $2.84 billion for the same period last year. “Third
quarter parts sales and profits benefited from high customer
vehicle utilization, industry-leading logistics operations, strong
demand for powertrain components and the growth of our e-commerce
platform,” noted David Danforth, PACCAR vice president and PACCAR
Parts general manager. “PACCAR Parts’ e-commerce sales have
increased 37% in the first nine months of this year, compared to
the same period last year.”
Financial Services Companies Achieve Record Results
PACCAR Financial Services (PFS) offers competitive retail
financing to Peterbilt, Kenworth, and DAF dealers and customers.
PFS has a portfolio of 199,000 trucks and trailers, with total
assets of $14.94 billion. PacLease, a major full-service truck
leasing company with a fleet of 38,300 vehicles, is included in
this segment.
PACCAR Financial Services (PFS) earned record pretax income of
$120.1 million in the third quarter this year compared to $55.5
million in the third quarter of 2020. PFS achieved third quarter
2021 revenues of $409.1 million compared to $397.6 million in the
same period last year. For the first nine months of 2021, PFS
earned pretax income of $303.0 million compared to $159.3 million
last year. Nine-month revenues were $1.30 billion compared with
$1.14 billion for the same period a year ago. Todd Hubbard, vice
president, said, “PFS achieved record third quarter results due to
excellent portfolio quality and strong used truck prices. PFS is
leveraging investments in its 12 worldwide used truck centers to
sell an increased number of used trucks at higher retail prices.” A
new PFS used truck facility is under construction in Madrid, Spain.
Kenworth and Peterbilt truck resale values command a 10-20% premium
over competitors’ trucks.
“PFS provides comprehensive technology solutions, elite customer
service and dedicated support to the transportation industry.
Kenworth, Peterbilt, and DAF dealers and customers appreciate the
ease of doing business with PFS,” said Craig Gryniewicz, PACCAR
Financial Corp. president. PACCAR’s strong balance sheet,
complemented by its A+/A1 credit ratings, enables PFS to have
excellent access to the commercial paper and medium-term note
markets. PFS profitably supports the sale of PACCAR trucks in 26
countries on four continents.
PACCAR Earns Recognition for ESG Leadership
PACCAR was honored by the Women in Trucking Association as a
2021 “Top Company for Women to Work for in Transportation.” The
recognition was for fostering gender diversity, flexible hours,
competitive compensation and benefits, training, professional
development and career advancement opportunities. “PACCAR is
committed to hiring, developing and promoting the most talented
people, and ensuring that our employees represent the diversity
present in the global community,” said Jack LeVier, vice president
of human resources.
PACCAR has earned several environmental awards this year. PACCAR
earned a CDP Climate Change score of A-, placing PACCAR in the top
15% of over 9,500 companies that publish reports to CDP about their
environmental practices. PACCAR participates in the Science Based
Targets Initiative, establishing ambitious 2030 carbon reduction
goals of 35% in our internal operations and energy purchased from
utilities, and 25% in our supplier and customer activities. The
Kenworth Chillicothe manufacturing plant recently received the
Encouraging Environmental Excellence “E3” Platinum Award from the
Ohio Environmental Protection Agency, one of only three recipients
in Ohio. The Kenworth Renton factory was awarded EnviroStar green
business status in Washington State for environmental management
practices. Kenworth T680 and Peterbilt 579 trucks earned the EPA
SmartWay designation, recognizing the vehicles’ comprehensive
aerodynamic package, low rolling resistance tires and reduced
emission features. All PACCAR manufacturing locations globally have
environmental management programs certified under ISO 14001.
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 third quarter earnings on October 26, 2021, at 9:00 a.m.
Pacific time. Interested parties may listen to the call by
selecting “Q3 Earnings Webcast” at PACCAR’s homepage. The Webcast
will be available on a recorded basis through November 2, 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 Nine
Months Ended September 30 September 30
2021
2020
2021
2020
Truck, Parts and Other: Net sales and revenues
$
4,737.7
$
4,538.4
$
15,538.8
$
12,018.3
Cost of sales and revenues
4,180.1
3,958.3
13,533.5
10,589.4
Research and development
72.5
64.7
237.0
202.2
Selling, general and administrative
134.7
100.4
396.8
325.7
Interest and other (income), net
(11.2
)
(13.0
)
(41.6
)
(45.6
)
Truck, Parts and Other Income BeforeIncome Taxes
361.6
428.0
1,413.1
946.6
Financial Services: Revenues
409.1
397.6
1,297.4
1,141.6
Interest and other
255.1
307.7
893.9
864.5
Selling, general and administrative
33.9
31.3
97.3
90.2
Provision for losses on receivables
-
3.1
3.2
27.6
Financial Services Income Before Income Taxes
120.1
55.5
303.0
159.3
Investment income
1.6
6.4
11.5
30.2
Total Income Before Income Taxes
483.3
489.9
1,727.6
1,136.1
Income taxes
105.6
104.4
386.9
243.5
Net Income
$
377.7
$
385.5
$
1,340.7
$
892.6
Net Income Per Share: Basic
$
1.09
$
1.11
$
3.86
$
2.57
Diluted
$
1.08
$
1.11
$
3.85
$
2.57
Weighted Average Shares Outstanding: Basic
347.8
346.8
347.7
346.7
Diluted
348.3
347.6
348.4
347.3
Dividends declared per share
$
.34
$
.32
$
1.00
$
.96
PACCAR Inc CONDENSED BALANCE SHEETS (in millions)
September 30 December 31
2021
2020
ASSETS Truck, Parts and Other: Cash and marketable
securities
$
3,647.8
$
4,834.0
Trade and other receivables, net
1,475.8
1,197.5
Inventories, net
2,516.7
1,221.9
Property, plant and equipment, net
3,336.7
3,270.4
Equipment on operating leases and other, net
1,995.2
1,936.4
Financial Services Assets
14,937.7
15,799.8
$
27,909.9
$
28,260.0
LIABILITIES AND STOCKHOLDERS' EQUITY Truck, Parts
and Other: Accounts payable, deferred revenues and other
$
5,583.7
$
5,601.1
Financial Services Liabilities
10,995.8
12,268.9
STOCKHOLDERS' EQUITY
11,330.4
10,390.0
$
27,909.9
$
28,260.0
Common Shares Outstanding
347.2
346.6
PACCAR Inc CONDENSED CASH FLOW STATEMENTS (in
millions) Nine Months Ended September 30
2021
2020
OPERATING ACTIVITIES: Net income
$
1,340.7
$
892.6
Depreciation and amortization: Property, plant and equipment
197.5
186.0
Equipment on operating leases and other
494.8
593.5
Net change in trade receivables, inventory and payables
(1,143.2
)
87.7
Net decrease in wholesale receivables on new trucks
587.7
785.7
All other operating activities, net
(327.3
)
(353.0
)
Net Cash Provided by Operating Activities
1,150.2
2,192.5
INVESTING ACTIVITIES: Payments for property, plant
and equipment
(381.3
)
(426.2
)
Acquisitions of equipment for operating leases
(790.5
)
(706.7
)
Net increase in financial services receivables
(375.8
)
(312.5
)
Net increase in marketable debt securities
(151.1
)
(25.5
)
Proceeds from asset disposals and other
673.3
436.6
Net Cash Used in Investing Activities
(1,025.4
)
(1,034.3
)
FINANCING ACTIVITIES: Payments of cash dividends
(589.9
)
(1,128.9
)
Purchases of treasury stock
(1.5
)
(41.6
)
Proceeds from stock compensation transactions
30.1
41.3
Net decrease in debt and other
(828.6
)
(858.8
)
Net Cash Used in Financing Activities
(1,389.9
)
(1,988.0
)
Effect of exchange rate changes on cash
(46.7
)
(1.0
)
Net Decrease in Cash and Cash Equivalents
(1,311.8
)
(830.8
)
Cash and cash equivalents at beginning of period
3,539.6
4,175.1
Cash and cash equivalents at end of period
$
2,227.8
$
3,344.3
PACCAR Inc SEGMENT AND OTHER INFORMATION (in
millions) Three Months Ended Nine Months Ended September 30
September 30
2021
2020
2021
2020
Sales and Revenues: Truck
$
3,452.6
$
3,504.0
$
11,837.8
$
9,120.0
Parts
1,260.2
1,016.2
3,632.2
2,838.5
Financial Services
409.1
397.6
1,297.4
1,141.6
Other
24.9
18.2
68.8
59.8
$
5,146.8
$
4,936.0
$
16,836.2
$
13,159.9
Pretax Profit: Truck
$
78.5
$
210.1
$
603.0
$
347.0
Parts
280.8
210.2
797.7
576.8
Financial Services
120.1
55.5
303.0
159.3
Investment Income and Other
3.9
14.1
23.9
53.0
$
483.3
$
489.9
$
1,727.6
$
1,136.1
GEOGRAPHIC REVENUE (in millions) Three Months
Ended Nine Months Ended September 30 September 30
2021
2020
2021
2020
United States and Canada
$
3,056.6
$
3,162.0
$
10,186.1
$
8,338.0
Europe
1,277.6
1,143.7
4,325.7
3,261.7
Other
812.6
630.3
2,324.4
1,560.2
$
5,146.8
$
4,936.0
$
16,836.2
$
13,159.9
NEW TRUCK DELIVERIES Three Months Ended Nine
Months Ended September 30 September 30
2021
2020
2021
2020
United States and Canada
17,200
20,700
62,800
52,200
Europe
9,700
10,500
35,200
28,500
Other
5,900
4,800
17,100
11,800
32,800
36,000
115,100
92,500
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211026005374/en/
Ken Hastings (425) 468-7530 ken.hastings@paccar.com
PACCAR (NASDAQ:PCAR)
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