“PACCAR (Nasdaq: PCAR) reported record annual revenues and
profits in 2019 and has earned an impressive 81 consecutive years
of net income,” said Preston Feight, chief executive officer.
“PACCAR’s vibrant results reflect the company’s premium-quality
products and services, strong global truck markets, record truck
production and record aftermarket parts sales. I am very proud of
our employees who have delivered outstanding products and services
to our customers.” PACCAR delivered a total shareholder return of
45% compared to the S&P 500 Index total return of 31% in
2019.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200128005231/en/
Kenworth W990 Truck (Photo: Business
Wire)
“Freight tonnage grew 3.3% percent in the U.S. in 2019. The
North American and European economies are projected to continue
growing in 2020. We expect 2020 to be another strong year for
PACCAR,” added Feight.
PACCAR achieved quarterly revenues of $6.12 billion in the
fourth quarter 2019, compared to the $6.28 billion reported in the
same period in 2018. The company earned $531.3 million ($1.53 per
diluted share) in the fourth quarter of 2019. PACCAR earned $578.1
million ($1.65 per diluted share) in the fourth quarter of 2018.
PACCAR achieved record revenues of $25.60 billion in 2019, a 9%
increase compared to revenues of $23.50 billion in 2018. The
company earned a record $2.39 billion ($6.87 per diluted share) in
2019, 9% higher than the $2.20 billion ($6.24 per diluted share)
earned in 2018.
Increased Dividends and Share Repurchases
PACCAR declared cash dividends of $3.58 per share during 2019, a
16% increase compared to the $3.09 per share declared in 2018.
Dividends declared in 2019 included a $2.30 per share extra cash
dividend paid in January 2020. PACCAR has increased its regular
quarterly dividend an average of 11% per year during the last 20
years. “PACCAR has delivered annual dividends, including regular
quarterly and extra cash dividends, totaling approximately 50% of
net income for many years,” said Mark Pigott, executive
chairman.
PACCAR repurchased 1.68 million of its common shares for $110.2
million during 2019. PACCAR’s Board of Directors approved the
repurchase of $500 million of its common stock in December 2018.
Stock repurchases of $430.5 million are remaining under the
authorization.
Business Highlights – 2019
- PACCAR delivered a record 198,800 vehicles worldwide.
- Kenworth and Peterbilt achieved U.S. and Canada Class 8 retail
sales market share of 30.0%.
- DAF earned Truck of the Year awards in the U.K., Poland, Czech
Republic and Slovakia, and the Green Truck Logistics Solution award
in Germany.
- Kenworth Chillicothe and Peterbilt Denton each earned a
prestigious 2019 Manufacturing Leadership Award from the National
Association of Manufacturers.
- PACCAR participated in the CES technology show in Las Vegas,
Nevada, exhibiting autonomous, hydrogen fuel cell and
battery-electric Peterbilt and Kenworth trucks.
- Peterbilt, Kenworth and PACCAR Parts were each recognized as
top workplaces for women by Women in Trucking, an organization that
promotes the employment and success of women in the trucking
industry.
- PACCAR earned, for the second consecutive year, an elite “A”
rating from CDP for its environmental practices, placing the
company in the top 2% of over 8,000 reporting companies
worldwide.
Financial Highlights – Fourth Quarter 2019
Highlights of PACCAR’s financial results during the fourth
quarter of 2019 include:
- Consolidated net sales and revenues of $6.12 billion.
- Net income of $531.3 million.
- PACCAR Parts revenue of $993.9 million.
- PACCAR Parts pretax income of $205.2 million.
- PACCAR Financial Services earned $68.1 million.
- PACCAR invested $323.2 million in capital projects and research
and development.
Financial Highlights – Full Year 2019
Highlights of PACCAR’s financial results during 2019
include:
- Record consolidated net sales and revenues of $25.60
billion.
- Record net income of $2.39 billion, 9.3% after-tax return on
revenues.
- Record PACCAR Parts revenue of $4.02 billion.
- Record PACCAR Parts pretax income of $830.8 million.
- Record Financial Services assets of $16.07 billion.
- Record Financial Services new business volume of $5.63
billion.
- Financial Services pretax income of $298.9 million.
- Cash provided by operations of $2.86 billion.
- Record dividends declared of $1.24 billion.
- Medium-term note issuances of $2.49 billion.
- PACCAR invested a record $1.07 billion in capital projects and
research and development.
- Record year-end stockholders’ equity of $9.71 billion.
Global Truck Markets
“Strong GDP and consumer spending growth in 2019 resulted in
increased freight tonnage and record Kenworth and Peterbilt truck
deliveries,” said Darrin Siver, PACCAR senior vice president.
“Kenworth and Peterbilt achieved strong U.S. and Canada Class 8
retail sales market share of 30.0%.” Class 8 truck industry retail
sales in the U.S. and Canada were 309,000 units in 2019 compared to
285,000 vehicles sold in 2018. U.S. and Canada Class 8 truck
industry retail sales are expected to be in a range of
230,000-260,000 trucks in 2020.
European above 16-tonne truck industry registrations were
320,000 trucks in 2019. It is estimated that European truck
industry registrations in the above 16-tonne market in 2020 will be
another excellent year in the range of 260,000-290,000 trucks.
“European truck demand remains strong due to steady European
economic growth,” said Harry Wolters, DAF president. “DAF achieved
robust above 16-tonne market share of 16.2% in 2019. DAF trucks
deliver premium quality, exceptional fuel efficiency and superior
driver comfort for its customers.”
The South American above 16-tonne truck market was 105,000
vehicles this year, and is projected to be in a range of
100,000-110,000 trucks in 2020. “Customer demand for DAF and
Kenworth trucks resulted in a 59% increase in deliveries in South
America in 2019,” said Gary Moore, PACCAR executive vice president.
The Brasilian above 16-tonne truck market was 75,000 vehicles in
2019, and is projected to be in a range of 70,000-80,000 trucks in
2020.
PACCAR Parts Achieves Record Results
PACCAR’s aftermarket parts business achieved fourth quarter
pre-tax income of $205.2 million, 6% higher than the $193.8 million
earned in the fourth quarter of 2018. Fourth quarter 2019 revenues
were $993.9 million compared to $970.9 million reported in the
fourth quarter of 2018. PACCAR Parts achieved record annual pre-tax
income of $830.8 million, 8% higher than the $768.6 million earned
in 2018. Annual revenues were a record $4.02 billion compared to
$3.84 billion in 2018. David Danforth, PACCAR vice president and
PACCAR Parts general manager, said, “PACCAR Parts’ revenue and
profit growth has been driven by investments in distribution and
technology, initiatives such as TRP all-makes parts, TRP stores and
a growing population of integrated and connected PACCAR vehicles.
More than 40% of Kenworth and Peterbilt Class 8 trucks and 100% of
DAF above 16-tonne vehicles are sold with PACCAR Engines.”
PACCAR Parts’ 18 Distribution Centers (PDCs) support over 2,200
DAF, Kenworth and Peterbilt dealer locations and deliver
industry-leading customer service. PACCAR will open a new
250,000-square-foot PDC in Las Vegas, Nevada and a new
160,000-square-foot PDC in Ponta Grossa, Brasil in 2020 to enhance
parts availability for customers.
PACCAR Displays Innovative Autonomous and Electric Trucks at
CES 2020
PACCAR participated in the CES technology show in Las Vegas,
Nevada this month. PACCAR is a leader in autonomous and alternative
powertrain commercial vehicles, and exhibited three vehicles with
these technologies: a battery-electric Kenworth K270E, a Level 4
autonomous Kenworth T680 and a battery-electric Peterbilt Model
520EV. These trucks are designed for a range of customer
applications, including urban distribution, over-the-road
transportation and refuse collection. “These advanced technology
Kenworth and Peterbilt vehicles are environmentally-friendly and
enhance our customers’ operations,” said Kyle Quinn, PACCAR chief
technology officer.
Kenworth, Peterbilt and DAF to Produce Battery-Electric
Vehicles
PACCAR is investing in next generation technology in its
portfolio of industry-leading products and services. “Kenworth,
Peterbilt and DAF are field testing battery-electric trucks with
customers, and plan to deliver production models in the next 12 to
18 months,” said Kyle Quinn.
The zero-emissions Peterbilt Model 220EV and Kenworth K270E
cabover trucks will have a range between 100 and 200 miles. The DAF
CF Electric was honored as the Green Truck Logistics Solution 2019
in Germany, a prestigious award for the deployment of sustainable
technologies in Europe.
Capital and R&D Investments in Products, Technologies and
Facilities
PACCAR’s consistent long-term profits, strong balance sheet, and
intense focus on quality, technology and productivity have enabled
the company to invest $6.8 billion in new and expanded facilities,
innovative products and new technologies during the past decade.
PACCAR invested $743.9 million in capital projects and $326.6
million in research and development expenses in 2019. Mike Dozier,
PACCAR senior vice president, said, “Capital expenditures are
projected to be $625-$675 million and research and development
expenses are estimated to be $310-$340 million in 2020. PACCAR is
investing for long-term growth in aerodynamic truck models,
integrated powertrains including diesel, electric, hybrid, and
hydrogen fuel cell technologies, as well as advanced driver
assistance systems, connected vehicle services and next-generation
manufacturing and distribution capabilities.”
PACCAR Achieves Elite “A” Rating from CDP for Environmental
Management
PACCAR has been honored for the second year as a global leader
in environmental practices by reporting firm CDP, earning
recognition on the 2019 CDP Climate Change “A” List. Over 8,000
companies disclose data about their environmental impacts, risks
and opportunities to CDP for independent assessment. “Environmental
leadership is one of PACCAR’s core values. PACCAR is proud to earn
a CDP score of ‘A,’ which places PACCAR in the top 2% of reporting
companies worldwide,” said Harrie Schippers, PACCAR president and
chief financial officer. “PACCAR is one of only 35 companies in the
U.S. to earn an ‘A’ rating.” PACCAR’s 2019 CDP report is available
to the public at www.cdp.net.
Financial Services Companies Achieve Record Revenues and
Assets
PACCAR Financial Services (PFS) has a portfolio of 208,000
trucks and trailers, with record total assets of $16.07 billion.
PacLease, a major full-service truck leasing company in North
America and Europe with a fleet of over 40,000 vehicles, is
included in this segment. PFS achieved fourth quarter 2019 pretax
income of $68.1 million, compared to $87.2 million in the fourth
quarter of 2018. Fourth quarter 2019 revenues were a record $406.3
million compared to $347.0 million in the same quarter of 2018. PFS
earned $298.9 million of pretax profit in 2019 compared to the
$305.9 million earned in 2018. PFS revenues were a record $1.48
billion in 2019 compared to the $1.36 billion achieved in 2018.
“PFS’ excellent portfolio performance and increased earning assets
contributed to very good results in 2019,” said Todd Hubbard,
PACCAR vice president.
“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 25 countries
on four continents,” said Craig Gryniewicz, PACCAR Financial Corp.
president. “PACCAR Financial Services has excellent access to the
debt markets, issuing $2.49 billion in three-, four- and five-year
term notes during 2019.”
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 fourth quarter earnings on January 28, 2020, at 9:00 a.m.
Pacific time. Interested parties may listen to the call by
selecting “Q4 Earnings Webcast” at PACCAR’s homepage. The webcast
will be available on a recorded basis through February 4, 2020.
PACCAR shares are traded on the Nasdaq Global Select 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
Year Ended
December 31
December 31
2019
2018
2019
2018
Truck, Parts and Other:
Net sales and revenues
$
5,710.9
$
5,932.7
$
24,119.7
$
22,138.6
Cost of sales and revenues
4,890.0
5,088.6
20,555.6
18,925.0
Research and development
83.6
80.5
326.6
306.1
Selling, general and administrative
148.0
136.6
561.5
524.9
Interest and other (income), net
(10.3
)
(18.3
)
(42.0
)
(60.8
)
Truck, Parts and Other Income Before Income Taxes
599.6
645.3
2,718.0
2,443.4
Financial Services:
Revenues
406.3
347.0
1,480.0
1,357.1
Interest and other
299.4
228.5
1,028.7
914.9
Selling, general and administrative
35.2
29.6
137.0
119.8
Provision for losses on receivables
3.6
1.7
15.4
16.5
Financial Services Income Before Income Taxes
68.1
87.2
298.9
305.9
Investment income
20.1
19.9
82.3
60.9
Total Income Before Income Taxes
687.8
752.4
3,099.2
2,810.2
Income taxes
156.5
174.3
711.3
615.1
Net Income
$
531.3
$
578.1
$
2,387.9
$
2,195.1
Net Income Per Share:
Basic
$
1.53
$
1.66
$
6.88
$
6.25
Diluted
$
1.53
$
1.65
$
6.87
$
6.24
Weighted Average Shares Outstanding:
Basic
346.7
349.1
346.9
351.0
Diluted
347.4
349.6
347.5
351.8
Dividends declared per share
$
2.62
$
2.28
$
3.58
$
3.09
PACCAR Inc CONDENSED BALANCE SHEETS (in millions)
December 31
December 31
2019
2018
ASSETS Truck, Parts and Other: Cash and
marketable debt securities
$
5,169.4
$
4,299.6
Trade and other receivables, net
1,306.1
1,314.4
Inventories, net
1,153.2
1,184.7
Property, plant and equipment, net
2,883.8
2,480.9
Equipment on operating leases and other, net
1,777.2
1,803.2
Financial Services Assets
16,071.4
14,399.6
$
28,361.1
$
25,482.4
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck, Parts and Other: Accounts payable, deferred
revenues and other
$
6,013.1
$
5,710.9
Financial Services Liabilities
12,641.9
11,178.6
STOCKHOLDERS' EQUITY
9,706.1
8,592.9
$
28,361.1
$
25,482.4
Common Shares Outstanding
346.3
346.6
PACCAR Inc CONDENSED CASH FLOW STATEMENTS (in
millions) Year Ended December 31
2019
2018
OPERATING ACTIVITIES: Net income
$
2,387.9
$
2,195.1
Depreciation and amortization: Property, plant and equipment
322.2
337.6
Equipment on operating leases and other
755.1
716.5
Net change in trade receivables, inventory and payables
(75.3
)
(102.9
)
Net increase in wholesale receivables on new trucks
(520.2
)
(512.3
)
All other operating activities, net
(9.4
)
358.3
Net Cash Provided by Operating Activities
2,860.3
2,992.3
INVESTING ACTIVITIES: Payments for
property, plant and equipment
(574.0
)
(457.6
)
Acquisitions of equipment for operating leases
(1,396.8
)
(1,494.7
)
Net increase in financial services receivables
(740.7
)
(945.8
)
Net (increase) decrease in marketable debt securities
(135.1
)
315.6
Proceeds from asset disposals and other
639.2
651.8
Net Cash Used in Investing Activities
(2,207.4
)
(1,930.7
)
FINANCING ACTIVITIES: Payments of cash
dividends
(1,138.6
)
(804.3
)
Purchases of treasury stock
(110.2
)
(354.4
)
Proceeds from stock compensation transactions
60.8
19.3
Net increase in debt and other
1,271.4
1,210.5
Net Cash Provided by Financing Activities
83.4
71.1
Effect of exchange rate changes on cash
2.9
(61.5
)
Net Increase in Cash and Cash Equivalents
739.2
1,071.2
Cash and cash equivalents at beginning of period
3,435.9
2,364.7
Cash and cash equivalents at end of period
$
4,175.1
$
3,435.9
PACCAR Inc SEGMENT AND OTHER INFORMATION (in
millions) Three Months Ended
Year Ended December 31 December 31
2019
2018
2019
2018
Sales and Revenues: Truck
$
4,692.9
$
4,936.8
$
19,989.5
$
18,187.0
Parts
993.9
970.9
4,024.9
3,838.9
Financial Services
406.3
347.0
1,480.0
1,357.1
Other
24.1
25.0
105.3
112.7
$
6,117.2
$
6,279.7
$
25,599.7
$
23,495.7
Pretax Profit:
Truck
$
395.7
$
451.9
$
1,904.9
$
1,672.1
Parts
205.2
193.8
830.8
768.6
Financial Services
68.1
87.2
298.9
305.9
Investment Income and Other
18.8
19.5
64.6
63.6
$
687.8
$
752.4
$
3,099.2
$
2,810.2
GEOGRAPHIC REVENUE (in millions)
Three Months Ended Year Ended
December 31 December 31
2019
2018
2019
2018
United States and Canada
$
3,943.9
$
3,837.0
$
16,762.9
$
14,782.1
Europe
1,554.2
1,725.8
6,104.7
6,071.9
Other
619.1
716.9
2,732.1
2,641.7
$
6,117.2
$
6,279.7
$
25,599.7
$
23,495.7
NEW TRUCK DELIVERIES
Three Months Ended Year Ended December
31 December 31
2019
2018
2019
2018
United States and Canada
26,600
26,800
117,200
105,300
Europe
14,600
18,000
59,900
63,800
Other
4,500
5,600
21,700
20,000
45,700
50,400
198,800
189,100
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200128005231/en/
Ken Hastings (425) 468-7530 ken.hastings@paccar.com
PACCAR (NASDAQ:PCAR)
Historical Stock Chart
From Mar 2024 to Apr 2024
PACCAR (NASDAQ:PCAR)
Historical Stock Chart
From Apr 2023 to Apr 2024