PACCAR INC Quarterly Report for Q1 Ended Mar 31, 2016

Summary

PACCAR Inc reported a net loss of $594.6 million ($1.69 per diluted share) for the first quarter of 2016, a significant decline compared to a net income of $378.4 million ($1.06 per diluted share) in the same period of 2015. This loss was primarily driven by a non-recurring charge of $942.6 million related to a European Commission investigation into anti-competitive practices in the truck manufacturing industry. Excluding this charge, adjusted net income was $348.0 million ($.99 per diluted share). Consolidated net sales and revenues decreased to $4.30 billion from $4.83 billion year-over-year. The Truck segment experienced a revenue decrease of 13%, largely due to lower truck deliveries in North America, although this was partially offset by higher sales in Europe. The Parts segment saw a 4% revenue decline, primarily in North America, while the Financial Services segment reported a 2% revenue increase due to higher average earning assets, despite lower yields. The company's outlook anticipates lower truck industry sales in the U.S. and Canada for 2016, but projects an increase in European truck registrations.

Key Highlights

• 1Significant net loss of $594.6 million in Q1 2016, primarily due to a $942.6 million European Commission charge.
• 2Adjusted net income (excluding the charge) was $348.0 million, showing continued underlying profitability.
• 3Consolidated net sales decreased by 10.6% year-over-year to $4.30 billion.
• 4Truck segment revenue declined 13% driven by lower North American deliveries, though European sales saw growth.
• 5Parts segment revenue decreased 4%, impacted by lower North American demand.
• 6Financial Services segment revenue grew 2% driven by higher average earning assets.
• 7Capital expenditures and R&D spending increased compared to the prior year's first quarter, indicating continued investment in the business.

Frequently Asked Questions