10-QPeriod: Q3 FY2013

PACCAR INC Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 7, 2013For Securities:PCAR

Summary

PACCAR Inc's third quarter and year-to-date results for 2013 demonstrate resilience and strategic growth. For the three months ended September 30, 2013, the company reported net income of $309.4 million, or $0.87 per diluted share, a significant increase from $233.6 million, or $0.66 per diluted share, in the same period of 2012. This performance was driven by stronger net sales and revenues of $4.30 billion, up from $3.82 billion in Q3 2012, with notable growth in the Truck and Parts segments. The nine-month period ending September 30, 2013, saw net income of $837.1 million ($2.36 per diluted share), a slight decrease from $858.1 million ($2.41 per diluted share) in the prior year. This was primarily due to lower Truck segment sales in the first half of the year, though offset by record Parts sales and strong Financial Services performance. The company's strategic investments, including the new DAF assembly plant in Brazil and new product launches for the vocational market, position it for future growth, while ongoing cost controls and a focus on operational efficiency remain key priorities.

Financial Highlights

31 data points
Beta

Revenue

$4.30B

Net Income

$309.40M

7.2% Net Margin

EPS (Diluted)

$0.58

Total Assets

$20.31B

Cash & Equivalents

$1.71B

Free Cash Flow

$439.60M

Financial Statements
Beta
Revenue$4.30B
Net Income$309.40M
EPS (Basic)$0.58
EPS (Diluted)$0.58
Shares Outstanding (Basic)531.60M
Shares Outstanding (Diluted)533.10M

Key Highlights

  • 1Net income for Q3 2013 increased to $309.4 million ($0.87/share) from $233.6 million ($0.66/share) in Q3 2012.
  • 2Consolidated net sales and revenues rose to $4.30 billion in Q3 2013 from $3.82 billion in Q3 2012.
  • 3The Truck segment saw a 14% increase in net sales and revenues for Q3 2013, driven by higher deliveries in the U.S., Canada, and Europe.
  • 4The Parts segment achieved record sales in Q3 2013, reaching $715.3 million, a 10% increase year-over-year.
  • 5Financial Services segment pre-tax income reached record levels in Q3 2013, increasing by 10% to $88.2 million.
  • 6PACCAR began production at its new DAF assembly plant in Ponta Grossa, Brazil, in October 2013.
  • 7The company continues to invest in R&D and capital expenditures, with expected investments of $425-$475 million in 2013 and $350-$400 million in 2014.

Frequently Asked Questions

The primary drivers were increased truck deliveries in key markets like the U.S., Canada, and Europe, coupled with record sales from the aftermarket Parts segment. Additionally, the Financial Services segment delivered strong pre-tax income, contributing significantly to the overall positive results.

The Truck segment experienced a 14% increase in net sales and revenues for the third quarter of 2013 compared to the same period in 2012. This growth was fueled by higher truck unit deliveries, particularly in the U.S., Canada, and Europe, although partially offset by lower sales in Mexico, South America, and Australia.

For the U.S. and Canada, Class 8 retail sales are projected to be between 205,000-215,000 units in 2013, with estimates for 2014 ranging from 210,000-240,000 units, driven by fleet replacement and economic growth. In Europe, over 16-tonne truck registrations are expected to be 215,000-225,000 units in 2013, with projections for 2014 between 200,000-230,000 units, impacted by pre-purchases of Euro 5 vehicles before Euro 6 regulations.

PACCAR is focused on several strategic initiatives, including commencing production at its new DAF assembly plant in Brazil to serve the South American market, expanding its parts distribution network, and launching new products like the Kenworth T880 and Peterbilt Model 567. The company also continues to invest in research and development for new vehicle and engine technologies.