01—Abstract
Summary
Summary of the 10-K filed February 21, 2019. Cited figures are marked; the original filing is the authoritative source.
PACCAR Inc's 2018 10-K filing demonstrates a strong financial performance, driven by record revenues and net income.
The company experienced significant growth in its Truck, Parts, and Financial Services segments, with truck deliveries increasing by 19%a year-over-year. This growth was supported by new product launches, such as the Peterbilt Model 579 UltraLoft and the Kenworth W990, and a focus on fuel efficiency and electric vehicle technology. The Financial Services segment saw a 21% increase in new loan and lease volume, supported by higher average earning assets and interest rates, contributing positively to the company's overall profitability.
PACCAR continues to invest in research and development and capital expenditures, indicating a commitment to future innovation and expansion, particularly in zero-emission vehicle technologies. The company anticipates continued growth in 2019, with projected increases in truck industry retail sales across its key markets.
02—Key points
Key Highlights
- Record net sales and revenues of $23.50 billion, a significant increase from $19.46 billion in 2017, driven by strong performance across all segments.
- Net income reached a record $2.20 billion ($6.24 per diluted share), marking the 80th consecutive year of profitability, compared to $1.68 billion ($4.75 per diluted share) in 2017.
- Truck segment net sales and revenues increased by 23% to $18.19 billion, with truck deliveries up 19% year-over-year, reflecting higher demand in North America and Europe.
- PACCAR Parts achieved record sales of $3.84 billion, a 15% increase from 2017, driven by strong aftermarket demand and successful marketing programs.
- Financial Services segment revenues grew 7% to $1.36 billion, with a 21% increase in new loan and lease volume, supported by higher earning assets and interest rates.
- The company invested $437.1 million in capital expenditures and $306.1 million in research and development in 2018, signaling a commitment to future growth and innovation, including advancements in electric and hydrogen fuel cell technologies.
- PACCAR ended 2018 with a robust cash position of $3.44 billion in cash and cash equivalents, and $1.02 billion in marketable debt securities.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2018filed February 21, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $23.50B$19.46B | +20.8% |
| Net Income | $2.20B$1.68B | +31.0% |
| EPS (Basic) | $4.17$3.17 | +31.3% |
| EPS (Diluted) | $4.16$3.17 | +31.4% |
| Shares Outstanding (Basic) | 526.50M527.85M | −0.3% |
| Shares Outstanding (Diluted) | 527.70M529.35M | −0.3% |
05—Questions
Frequently Asked Questions
What was PACCAR's financial performance in 2018?
PACCAR reported record net sales and revenues of $23.50 billion in 2018, a significant increase from $19.46 billion in 2017. Net income also reached a record $2.20 billion ($6.24 per diluted share), continuing a streak of 80 consecutive profitable years.
How did the different business segments perform?
All segments showed growth. The Truck segment's net sales increased by 23% to $18.19 billion, supported by a 19% rise in truck deliveries. The Parts segment achieved record sales of $3.84 billion (up 15%), and the Financial Services segment saw revenues grow by 7% to $1.36 billion, with a 21% increase in new loan and lease volume.
What are PACCAR's key investments for the future?
PACCAR is actively investing in research and development and capital expenditures. In 2018, these investments totaled $306.1 million for R&D and $437.1 million for capital expenditures. The company is particularly focused on developing zero-emission technologies, including electric and hydrogen fuel cell trucks, as well as improving aerodynamic designs and truck connectivity.
What is the outlook for PACCAR in 2019?
PACCAR anticipates continued growth in 2019. The company projects truck industry retail sales in the U.S. and Canada to increase to between 285,000 and 315,000 units. European registrations for vehicles over 16 tonnes are expected to be between 290,000 and 320,000 units, and heavy-duty truck sales in South America are estimated to rise. PACCAR Parts sales are expected to grow by 5-8%, and financial services are projected to see a 3-5% increase in average earning assets.
06—Continue