Kenworth Robotic Cab Build Cell, Chillicothe, Ohio
“PACCAR reported good revenues and net income for the first quarter of 2020,” said Preston Feight, CEO. “First quarter truck deliveries were impacted by the temporary closures of PACCAR truck manufacturing facilities worldwide, which began March 24, resulting from government coronavirus mandates. PACCAR Parts achieved record results as they supported the shipment of medical supplies, food, infrastructure material and essential goods to our communities around the world. I am very proud of our employees, their support of each other, and their commitment to deliver essential products and services to our customers.”
Feight added, “PACCAR has taken many positive steps in fighting the virus. We have temporarily closed our truck factories and have realigned all of our facilities to enhance social distancing. Every factory, office and distribution center has implemented best practices for deep cleaning, staggered shifts and employee spacing. Thousands of our employees are working from home when possible.”
First quarter 2020 revenues were $5.16 billion, compared to $6.49 billion earned in the first quarter of 2019. PACCAR achieved net income of $359.4 million ($1.03 per diluted share) in the first quarter of this year, compared to $629 million ($1.81 per diluted share) earned in the same period last year.
Harrie Schippers, president and chief financial officer, noted, “PACCAR delivered Truck, Parts and Other gross margins of 12.3% in the first quarter. A core competency of DAF, Kenworth and Peterbilt manufacturing facilities is managing build rate fluctuations, gained from the normal cyclicality in our industry. The company is rigorously aligning operating costs to reflect changing market conditions, including selectively reducing capital investment and research & development costs. The first quarter included higher accruals for product support costs and lower used truck results. The company has achieved 81 consecutive years of profitability, managing through all business cycles.”
PACCAR’s Strong Balance Sheet and Dividend Announcement
“PACCAR is in a strong financial position, with excellent liquidity and investment-grade credit ratings of A+/A1,” shared Mark Pigott, executive chairman. Manufacturing cash and marketable securities were $4.3 billion at March 31, 2020. The company also has access to committed bank facilities of $3 billion.
PACCAR’s board of directors declared a regular quarterly cash dividend of $.32 per share, payable on June 2, 2020, to stockholders of record at the close of business on May 12, 2020.
Highlights – First Quarter 2020
Highlights of PACCAR’s financial results during the first quarter of 2020 include:
• Consolidated net sales and revenues of $5.16 billion.
• Net income of $359.4 million.
• PACCAR Parts revenues of $998.6 million and pretax profits of $214.7 million.
• PACCAR Financial Services revenues of $383.7 million and pretax profits of $48.3 million.
• Research and development expenses of $71 million.
• Capital investments of $177.1 million
• Cash flow from operations of $425.9 million.
• Manufacturing cash and marketable securities of $4.3 billion.
• Stockholders’ equity of $9.64 billion.
PACCAR Parts Achieves Excellent Quarterly Sales and Record Profit
PACCAR Parts’ 18 parts distribution centers (PDCs) support more than 2,200 DAF, Kenworth and Peterbilt dealer sales, parts and service locations. PACCAR Parts earned record quarterly pretax income of $214.7 million in the first quarter of 2020, which is 3% higher than the $207.6 million earned in the same period last year. PACCAR Parts achieved first quarter revenues of $998.6 million, compared to the $1 billion reported in the same period last year. David Danforth, PACCAR vice president and PACCAR Parts general manager, said, “PACCAR Parts is achieving solid results due to investments in distribution and innovative technology, initiatives such as TRP all-makes parts and TRP stores, and a growing population of connected PACCAR vehicles.”
Jim Walenczak, PACCAR Parts assistant general manager, added, “PACCAR Parts has invested in its e-commerce platform for many years, which is benefiting our customers and dealers in this challenging time.” PACCAR Parts is expanding its logistical footprint and plans to open a new 250,000 square foot PDC in Las Vegas, Nevada, and a 160,000 square foot PDC in Ponta Grossa, Brasil, in the second quarter of 2020.