10-QPeriod: Q1 FY2013

PACCAR INC Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 8, 2013For Securities:PCAR

Summary

PACCAR Inc's first quarter 2013 results show a decline in net income and revenues compared to the same period in 2012, primarily driven by lower truck deliveries in North America. While the Truck segment experienced a significant revenue decrease, the Financial Services segment saw an increase in revenues driven by higher average earning assets. The company is actively managing its product lines and exploring new markets, evidenced by the launch of new truck models and engines. Despite the revenue decline, PACCAR maintained a strong liquidity position and continues its capital investment in product development and manufacturing expansion. Investors should note the company's outlook for the truck industry in 2013 anticipates a slight decrease in U.S. and Canadian sales compared to 2012, with stable expectations for European sales. The company's focus on cost control and new product development is a key takeaway from this filing.

Financial Highlights

31 data points
Beta

Revenue

$3.92B

Net Income

$236.10M

6.0% Net Margin

EPS (Diluted)

$0.45

Total Assets

$18.83B

Cash & Equivalents

$1.26B

Free Cash Flow

$245.60M

Financial Statements
Beta
Revenue$3.92B
Net Income$236.10M
EPS (Basic)$0.45
EPS (Diluted)$0.45
Shares Outstanding (Basic)531.00M
Shares Outstanding (Diluted)532.20M

Key Highlights

  • 1Consolidated net sales and revenues decreased to $3.92 billion in Q1 2013 from $4.78 billion in Q1 2012, primarily due to lower truck deliveries.
  • 2Net income for Q1 2013 was $236.1 million ($0.67 per diluted share), down from $327.3 million ($0.91 per diluted share) in Q1 2012.
  • 3The Truck segment experienced a 23% decrease in net sales and revenues, largely driven by a 33% decline in U.S. and Canada unit deliveries.
  • 4The Financial Services segment saw revenues increase by 12% to $293.1 million, with income before taxes rising to $80.1 million from $71.3 million.
  • 5PACCAR announced the launch of new truck models (Kenworth T880, Peterbilt Model 567, DAF LF and CF Euro 6) and the PACCAR MX-11 Euro 6 engine, with R&D expenses remaining stable.
  • 6The company expects 2013 U.S. and Canada truck industry retail sales to be between 210,000-240,000 units, a decrease from 224,900 units in 2012.
  • 7PACCAR maintained a strong liquidity position with $1.26 billion in cash and cash equivalents and $1.18 billion in marketable debt securities as of March 31, 2013.

Frequently Asked Questions

The primary driver for the decline in revenue and net income was a significant decrease in truck deliveries, particularly in the U.S. and Canada, reflecting softer industry retail sales and a challenging economic environment impacting demand for new trucks.

The Financial Services segment demonstrated resilience, with revenues increasing by 12% to $293.1 million and income before taxes growing to $80.1 million. This growth was driven by higher average earning assets, indicating continued financing and leasing activity for PACCAR products.

PACCAR anticipates a slight decrease in truck industry retail sales in the U.S. and Canada for 2013 compared to 2012, while expecting stable sales in Europe. The company is actively investing in new product development, including the launch of new truck models and engines, to maintain its competitive position and cater to evolving market needs and emission standards.

PACCAR maintains a strong liquidity position. As of March 31, 2013, the company reported $1.26 billion in cash and cash equivalents and $1.18 billion in marketable debt securities. Capital expenditures for 2013 are planned between $400 to $500 million, focusing on manufacturing expansion and new product development.