Summary
PACCAR Inc (PCAR) reported a significant downturn in financial performance for the nine months ended September 30, 2009, compared to the same period in 2008, largely due to the global economic recession impacting truck demand. Net sales and revenues decreased by 52% to $5.83 billion, and net income plummeted by 93% to $65.8 million, or $0.18 per diluted share. This decline was most pronounced in the Truck and Other segment, which experienced a 54% drop in net sales and revenues and a shift from significant profitability to a net loss before taxes. The Financial Services segment also saw reduced revenues and income, attributed to lower earning asset balances and yields, alongside increased past-due accounts, particularly in Europe and Mexico. Despite these challenges, PACCAR maintained a strong liquidity position with $1.8 billion in cash and cash equivalents and $240.3 million in marketable debt securities. The company also took steps to manage costs, including workforce reductions, and reduced capital expenditures and R&D spending significantly.
Financial Highlights
31 data points| Revenue | $2.01B |
| Net Income | $13.00M |
| EPS (Basic) | $0.03 |
| EPS (Diluted) | $0.03 |
| Shares Outstanding (Basic) | 545.70M |
| Shares Outstanding (Diluted) | 547.50M |
Key Highlights
- 1Significant decline in net sales and revenues, down 52% year-over-year for the nine months ended September 30, 2009.
- 2Net income decreased substantially by 93% to $65.8 million for the nine months ended September 30, 2009, with diluted EPS falling to $0.18.
- 3The Truck and Other segment reported a pre-tax loss of $32.2 million for the nine months, a sharp reversal from a profit of $1.06 billion in the prior year.
- 4Financial Services segment revenues decreased by 24% and pre-tax income fell by 71% due to lower asset balances and yields.
- 5The company reduced R&D spending by 43% and capital expenditures by approximately 84% for the nine months of 2009.
- 6PACCAR's liquidity remains strong, with $1.799 billion in cash and cash equivalents and $240.3 million in marketable debt securities as of September 30, 2009.
- 7The company declared a dividend of $0.09 per share for the quarter, down from $0.18 in the prior year, reflecting the challenging economic environment.