Early Access

10-QPeriod: Q2 FY2016

PACCAR INC Quarterly Report for Q2 Ended Jun 30, 2016

Filed August 3, 2016For Securities:PCAR

Summary

PACCAR Inc (PCAR) reported its Q2 2016 financial results, showing a mixed performance impacted by the European Commission (EC) investigation settlement. For the quarter, net income was $481.3 million ($1.37 per diluted share), a slight increase from $447.2 million ($1.26 per diluted share) in Q2 2015. However, the six-month period ending June 30, 2016, resulted in a net loss of $113.3 million ($-0.32 per diluted share), largely due to a significant non-recurring charge related to the EC investigation. Excluding this charge, adjusted net income for the first half of 2016 was $719.7 million ($2.05 per diluted share). Total net sales and revenues decreased year-over-year, driven by lower truck deliveries in the U.S. and Canada, though this was partially offset by an increase in European truck sales. The Parts segment experienced a slight revenue decline, primarily due to reduced demand in North America. The Financial Services segment saw revenue growth driven by higher average earning assets, despite lower yields. The company outlook suggests moderating U.S. truck sales but continued growth in Europe, with stable parts sales and Financial Services revenues.

Financial Highlights

33 data points
Beta

Revenue

$4.41B

Net Income

$481.30M

0.1% Net Margin

EPS (Diluted)

$0.91

Total Assets

$21.43B

Cash & Equivalents

$2.06B

Free Cash Flow

$778.90M

Financial Statements
Beta
Revenue$4.41B
Net Income$481.30M
EPS (Basic)$0.91
EPS (Diluted)$0.91
Shares Outstanding (Basic)526.35M
Shares Outstanding (Diluted)527.40M

Key Highlights

  • 1Net income for Q2 2016 was $481.3 million ($1.37/share), up from $447.2 million ($1.26/share) in Q2 2015.
  • 2Six-month period ended June 30, 2016, reported a net loss of $113.3 million ($-0.32/share) due to an $833.0 million EC charge.
  • 3Adjusted net income (non-GAAP) for the first half of 2016 was $719.7 million ($2.05/share), excluding the EC charge.
  • 4Total net sales and revenues decreased to $4.41 billion in Q2 2016 from $5.08 billion in Q2 2015.
  • 5Truck segment net sales decreased by 16% to $3.34 billion in Q2 2016, primarily due to lower U.S. and Canada deliveries, offset by higher European sales.
  • 6Financial Services revenues increased by 1% to $297.4 million in Q2 2016 due to higher average earning assets.
  • 7PACCAR expects U.S. and Canada truck industry retail sales in 2016 to be between 220,000-240,000 units, down from 278,400 in 2015.

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