UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 30, 2024
PACCAR Inc
(Exact name of registrant as specified in its charter)
Delaware |
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001-14817 |
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91-0351110 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
777 106th Avenue NE, Bellevue, WA 98004
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (425) 468-7400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on Which Registered |
Common stock, $1 par value |
PCAR |
The Nasdaq Stock Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On April 30, 2024 PACCAR Inc (the “Registrant”) issued a press release announcing its financial results for the first quarter of 2024 and announcing that it would hold a conference call with securities analysts to discuss first quarter 2024 earnings to be held that same day as more fully described in the press release attached as Exhibit 99.1 to this report.
The information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01 Financial Statements and Exhibits
The following is furnished as an Exhibit to this report.
Exhibit Number |
Description |
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99.1 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PACCAR Inc |
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Date: April 30, 2024 |
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By: |
/s/ B. J. Poplawski |
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B. J. Poplawski |
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Vice President and Controller |
Exhibit 99.1
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PACCAR Inc |
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Public Affairs Department |
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P.O. Box 1518 |
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Bellevue, WA 98009 |
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Contact: |
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Ken Hastings |
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(425) 468-7530 |
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ken.hastings@paccar.com |
FOR IMMEDIATE RELEASE
PACCAR Achieves Excellent Financial Performance
April 30, 2024, Bellevue, Washington – “PACCAR reported excellent revenues and net income in the first quarter of 2024,” said Preston Feight, chief executive officer. “PACCAR’s results reflect ongoing demand for premium quality DAF, Peterbilt and Kenworth trucks, aftermarket parts and financial services. I am very proud of our employees and dealers who have delivered outstanding trucks and transportation solutions to our customers.”
PACCAR achieved quarterly revenues of $8.74 billion in the first quarter of 2024, compared to the $8.47 billion reported in the same period in 2023. The company achieved net income of $1.20 billion ($2.27 per diluted share) in the first quarter of 2024. PACCAR reported net income of $733.9 million ($1.40 per diluted share) in the first quarter last year, including a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe. Excluding the non-recurring charge, the company earned adjusted net income (non-GAAP)1 of $1.18 billion ($2.25 per diluted share) in the first quarter of 2023.
Feight added, “PACCAR’s long-term investments in new truck models, advanced manufacturing and technology-enabled aftermarket solutions are contributing to PACCAR’s strong operating margins. Customers’ operations benefit from the superior quality and fuel economy of DAF, Peterbilt and Kenworth vehicles. PACCAR is developing next-generation powertrains and connected systems, which will drive aftermarket parts growth, as well as investing in production capacity.”
Highlights – First Quarter 2024
Highlights of PACCAR’s financial results during the first quarter of 2024 include:
_________________
1 See attached supplementary information on non-GAAP financial measures.
Peterbilt 567 Truck
Global Truck Markets
“North American truck demand is benefiting from increased infrastructure spending,” said Mike Dozier, PACCAR executive vice president. “Kenworth and Peterbilt’s industry-leading vocational trucks provide customers with the premium quality and durability required in rigorous construction applications.” U.S. and Canada Class 8 truck industry retail sales are estimated to be in a range of 250,000-290,000 trucks in 2024. Kenworth and Peterbilt achieved a combined class 8 market share of 30.3% in the first quarter of 2024, compared to 29.5% last year.
Kenworth T880 Truck
“The aerodynamic and innovative DAF XD, XF, XG and XG+ trucks offer best-in-class driver comfort and fuel efficiency to customers,” said Harald Seidel, DAF president. “DAF was honored as the Fleet Manufacturer of the Year and the DAF XD truck was named Best Rigid Truck at the prestigious Fleet News Awards in London this quarter.” European truck industry registrations for the above 16-tonne market in 2024 are projected to be between 260,000 and 300,000 trucks.
DAF XD Truck
The South American above 16-tonne truck market is projected to be in the range of 105,000-115,000 trucks in 2024. DAF Brasil achieved a record 10.7% market share in the Brasil above 16-tonne market in the first quarter of 2024, compared to 8.6% in the same period last year. Mike Kuester, PACCAR assistant vice president of South America, noted, “DAF’s industry-leading quality trucks, complemented by PACCAR Parts, PACCAR Financial Services and DAF’s premium dealerships, are driving DAF Brasil to record market share.”
PACCAR Parts Achieves Record Revenues and Profits
PACCAR Parts achieved record quarterly pre-tax income of $455.8 million, compared to $438.6 million earned in the first quarter of 2023. First quarter 2024 revenues were a record $1.68 billion compared to $1.62 billion reported in the same period last year. Laura Bloch, PACCAR vice president and PACCAR Parts general manager, said, “PACCAR Parts provides strategic, technology-driven transportation solutions that deliver greater uptime and profitability for customers. PACCAR Parts’ excellent performance reflects investments in its TRP all-makes parts and TRP stores, technologies such as managed dealer inventory, and a growing number of PACCAR trucks with PACCAR powertrains in operation.” PACCAR Parts’ private label brand, TRP, celebrates 30 years of success in 2024. TRP offers a selection of more than 157,000 parts designed for all makes and models of trucks, trailers and buses.
TRP Store
PACCAR Parts’ 19 global parts distribution centers support more than 2,300 DAF, Kenworth and Peterbilt dealer locations. PACCAR is constructing a new, 240,000 square-foot PACCAR PDC to be opened in Massbach, Germany, in 2024. The new PDC in Germany will enhance parts delivery to dealers and customers in the largest truck market in Europe.
Parts Distribution Center in Massbach, Germany (Rendering)
PACCAR Financial Services Achieves Good Quarterly Profits
PACCAR Financial Services (PFS) achieved pretax income of $113.9 million in the first quarter of 2024, compared to $148.8 million earned in the first quarter of 2023. First quarter 2024 revenues were a record $509.3 million compared to $423.2 million in the same quarter of last year. “PFS achieved good quarterly results due to its growing portfolio and strong portfolio quality. The used truck market has normalized after two years of high volume and prices,” said Todd Hubbard, PACCAR vice president. “PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan processing, and its support of customers in all phases of the business cycle.”
PFS has a portfolio of 228,000 trucks and trailers, with total assets of $21.15 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of over 41,000 vehicles, is included in this segment. “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 $950 million in medium-term notes during the first quarter of 2024.”
Capital and R&D Investments in Products, Technologies and Facilities
PACCAR’s consistent long-term profits, strong balance sheet, and focus on quality, technology and innovation have enabled the company to invest $7.9 billion in world-class facilities, next generation products and state of the art technologies during the past decade. PACCAR invested $164.3 million in capital projects and $105.5 million in research and development expenses in the first quarter of 2024. Harrie Schippers, president and chief financial officer, said, “Capital expenditures are projected to be in the range of $700-$750 million and research and development expenses are estimated to be in the range $460-$500 million in 2024. PACCAR is increasing its investment in new powertrains, advanced manufacturing capabilities and capacity, and aftermarket distribution capabilities that will create value for our customers.”
PACCAR’s advanced battery cell manufacturing joint venture is expected to begin construction of its 21-gigawatt hour (GWh) factory in Marshall County, Mississippi, in the second quarter of 2024, and start production in 2027. PACCAR anticipates investing $600-$900 million in the joint venture.
PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
PACCAR will hold a conference call with securities analysts to discuss first quarter earnings on April 30, 2024, at 8:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q1 Earnings Webcast” at PACCAR’s homepage. The webcast will be available on a recorded basis through May 7, 2024. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR. Its homepage is www.paccar.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.
PACCAR Inc
SUMMARY STATEMENTS OF OPERATIONS
(in millions except per share amounts)
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Three Months Ended |
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March 31 |
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2024 |
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2023 |
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Truck, Parts and Other: |
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Net sales and revenues |
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$ |
8,235.0 |
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$ |
8,050.1 |
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Cost of sales and revenues |
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6,673.8 |
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6,493.1 |
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Research and development |
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105.5 |
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97.2 |
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Selling, general and administrative |
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147.6 |
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159.8 |
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Interest and other (income) expenses, net |
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(27.0 |
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578.8 |
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(1) |
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Truck, Parts and Other Income Before Income Taxes |
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1,335.1 |
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721.2 |
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Financial Services: |
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Revenues |
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509.3 |
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423.2 |
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Interest and other |
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340.3 |
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236.1 |
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Selling, general and administrative |
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39.0 |
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35.2 |
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Provision for losses on receivables |
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16.1 |
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3.1 |
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Financial Services Income Before Income Taxes |
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113.9 |
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148.8 |
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Investment income |
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85.5 |
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49.0 |
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Total Income Before Income Taxes |
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1,534.5 |
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919.0 |
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Income taxes |
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339.2 |
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185.1 |
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Net Income |
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$ |
1,195.3 |
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$ |
733.9 |
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Net Income Per Share: |
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Basic |
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$ |
2.28 |
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$ |
1.40 |
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Diluted |
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$ |
2.27 |
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$ |
1.40 |
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Weighted Average Shares Outstanding: |
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Basic |
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524.9 |
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523.5 |
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Diluted |
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526.3 |
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524.4 |
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Dividends declared per share |
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$ |
.27 |
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$ |
.25 |
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(1) Includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims). |
PACCAR Inc
CONDENSED BALANCE SHEETS
(in millions)
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March 31 |
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December 31 |
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2024 |
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2023 |
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ASSETS |
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Truck, Parts and Other: |
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Cash and marketable securities |
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$ |
7,727.2 |
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$ |
8,659.3 |
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Trade and other receivables, net |
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2,410.9 |
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2,198.1 |
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Inventories, net |
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2,742.6 |
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2,576.7 |
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Property, plant and equipment, net |
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3,796.9 |
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3,780.1 |
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Equipment on operating leases and other, net |
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2,543.4 |
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2,645.3 |
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Financial Services Assets |
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21,152.6 |
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20,963.9 |
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$ |
40,373.6 |
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$ |
40,823.4 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Truck, Parts and Other: |
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Accounts payable, deferred revenues and other |
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$ |
7,642.5 |
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$ |
9,015.8 |
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Financial Services Liabilities |
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15,859.2 |
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15,928.8 |
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STOCKHOLDERS' EQUITY |
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16,871.9 |
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15,878.8 |
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$ |
40,373.6 |
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$ |
40,823.4 |
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Common Shares Outstanding |
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524.1 |
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523.3 |
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PACCAR Inc
CONDENSED CASH FLOW STATEMENTS
(in millions)
Three Months Ended March 31, |
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2024 |
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2023 |
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OPERATING ACTIVITIES: |
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Net income |
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$ |
1,195.3 |
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$ |
733.9 |
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Depreciation and amortization: |
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Property, plant and equipment |
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104.2 |
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103.0 |
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Equipment on operating leases and other |
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130.8 |
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118.1 |
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Net change in trade receivables, inventory and payables |
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140.5 |
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(187.2 |
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Net increase in wholesale receivables on new trucks |
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(183.4 |
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(451.2 |
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All other operating activities, net |
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81.6 |
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368.2 |
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Net Cash Provided by Operating Activities |
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1,469.0 |
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684.8 |
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INVESTING ACTIVITIES: |
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Payments for property, plant and equipment |
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(191.3 |
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(138.7 |
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Acquisitions of equipment for operating leases |
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(160.5 |
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(153.1 |
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Net increase in financial services receivables |
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(317.4 |
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(178.9 |
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Net increase in marketable debt securities |
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(25.8 |
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(10.9 |
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Proceeds from asset disposals and other |
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168.9 |
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188.9 |
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Net Cash Used in Investing Activities |
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(526.1 |
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(292.7 |
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FINANCING ACTIVITIES: |
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Payments of cash dividends |
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(1,816.5 |
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(1,105.3 |
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Purchases of treasury stock |
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(4.0 |
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(3.0 |
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Proceeds from stock compensation transactions |
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35.4 |
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20.5 |
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Net (decrease) increase in debt and other |
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(94.9 |
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397.0 |
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Net Cash Used in Financing Activities |
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(1,880.0 |
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(690.8 |
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Effect of exchange rate changes on cash |
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(50.1 |
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17.9 |
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Net Decrease in Cash and Cash Equivalents |
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(987.2 |
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(280.8 |
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Cash and cash equivalents at beginning of period |
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7,181.7 |
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4,690.9 |
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Cash and cash equivalents at end of period |
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$ |
6,194.5 |
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$ |
4,410.1 |
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PACCAR Inc
SEGMENT AND OTHER INFORMATION
(in millions)
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Three Months Ended |
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March 31 |
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2024 |
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2023 |
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Sales and Revenues: |
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Truck |
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$ |
6,541.0 |
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$ |
6,413.8 |
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Parts |
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1,675.9 |
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1,623.0 |
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Financial Services |
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509.3 |
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423.2 |
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Other |
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18.1 |
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13.3 |
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$ |
8,744.3 |
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$ |
8,473.3 |
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Pretax Profit: |
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Truck |
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$ |
881.6 |
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$ |
894.3 |
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Parts |
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455.8 |
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438.6 |
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Financial Services |
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113.9 |
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148.8 |
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Investment Income and Other |
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83.2 |
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(562.7 |
) |
(1) |
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$ |
1,534.5 |
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$ |
919.0 |
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GEOGRAPHIC REVENUE
(in millions)
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Three Months Ended |
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March 31 |
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2024 |
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2023 |
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United States and Canada |
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$ |
5,674.6 |
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$ |
5,040.1 |
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Europe |
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1,805.0 |
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2,275.5 |
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Other |
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1,264.7 |
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|
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1,157.7 |
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$ |
8,744.3 |
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|
$ |
8,473.3 |
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NEW TRUCK DELIVERIES
|
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Three Months Ended |
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March 31 |
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|||||
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2024 |
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2023 |
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United States and Canada |
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29,500 |
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26,000 |
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Europe |
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11,600 |
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|
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17,400 |
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Other |
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7,000 |
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|
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7,700 |
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|
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48,100 |
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|
|
51,100 |
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(1) Includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims).
PACCAR Inc |
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SUPPLEMENTARY INFORMATION |
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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
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This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-related claims. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies. |
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For the first quarter 2023, adjustment for the EC-related claims relates to a pre-tax charge of $600.0 million ($446.4 million after-tax) for estimable total costs recorded in Interest and other (income) expenses, net. |
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Management utilizes these non-GAAP measures to evaluate the Company’s performance and believes these measures allow investors and management to evaluate operating trends by excluding a significant non-recurring charge that is not representative of underlying operating trends. |
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Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows: |
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Three Months Ended |
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($ in millions, except per share amounts) |
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March 31, 2023 |
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Net income |
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$ |
733.9 |
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EC-related claims, net of taxes |
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446.4 |
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Adjusted net income (non-GAAP) |
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$ |
1,180.3 |
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Per diluted share: |
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Net income |
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$ |
1.40 |
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EC-related claims, net of taxes |
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.85 |
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Adjusted net income (non-GAAP) |
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$ |
2.25 |
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