Summary
PACCAR Inc's first quarter 2010 results show a significant recovery from the prior year, with net income more than doubling to $68.3 million ($0.19 per diluted share) from $26.3 million ($0.07 per diluted share) in Q1 2009. This improvement was driven by a 15% increase in net sales and revenues for the Truck and Other segment, reaching $1.98 billion, primarily due to higher truck unit sales in North America and increased parts sales globally. The company experienced a beneficial "pre-buy" effect in the U.S. as customers prepared for new EPA 2010 engine emission standards. The Financial Services segment saw a slight decrease in revenues to $246.4 million from $255.8 million, but its income before taxes rose substantially to $28.1 million from $15.3 million. This was attributed to lower interest expenses from hedging activities and reduced provision for losses on receivables, reflecting improved credit quality and a declining asset base. Overall, the company demonstrates a positive earnings trend and a healthier financial position compared to the previous year, signaling a recovery in its core markets.
Financial Highlights
30 data points| Revenue | $2.23B |
| Net Income | $68.30M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 546.90M |
| Shares Outstanding (Diluted) | 548.55M |
Key Highlights
- 1Net income surged by 159% year-over-year to $68.3 million ($0.19 per diluted share) in Q1 2010, up from $26.3 million ($0.07 per diluted share) in Q1 2009.
- 2Total net sales and revenues increased by 12% to $2.23 billion, driven by a 15% rise in the Truck and Other segment's revenue to $1.98 billion.
- 3The Truck segment benefited from a 13% increase in total unit deliveries, including a significant 24% jump in U.S. and Canada, partly due to EPA 2010 emission standard "pre-buy" activity.
- 4Financial Services segment income before taxes increased by 84% to $28.1 million, despite a 4% dip in revenue, due to lower borrowing costs and reduced credit loss provisions.
- 5The provision for losses on receivables for the Financial Services segment decreased by 13.2% to $21.7 million, indicating improving credit quality and lower charge-offs.
- 6Cash provided by operating activities saw a substantial increase to $285.4 million, up from $90.8 million in the prior year, primarily due to higher net income and lower pension contributions.
- 7The company's effective tax rate was 28.9% in Q1 2010, which included a $11.3 million benefit from a favorable tax settlement.