10-QPeriod: Q1 FY2021

PACCAR INC Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 3, 2021For Securities:PCAR

Summary

PACCAR Inc (PCAR) reported a strong first quarter for 2021, with net sales and revenues increasing to $5.85 billion, up from $5.16 billion in the prior year period. This growth was primarily driven by higher truck and parts revenues. Net income rose significantly to $470.1 million ($1.35 per diluted share) from $359.4 million ($1.03 per diluted share) in Q1 2020, reflecting improved performance across all segments. The Truck segment saw a notable increase in revenue and income, benefiting from higher truck deliveries and improved pricing, although supply chain disruptions, particularly the semiconductor shortage, impacted delivery volumes. PACCAR Parts achieved record sales, demonstrating robust demand for aftermarket parts. The Financial Services segment also performed well, with increased revenues and income, driven by higher used truck sales and favorable currency effects, despite slightly lower portfolio yields.

Financial Highlights

31 data points
Beta

Revenue

$5.85B

19.8% Gross Margin

Net Income

$470.80M

8.1% Net Margin

EPS (Diluted)

$0.90

Total Assets

$28.50B

Free Cash Flow

$422.30M

Financial Statements
Beta
Revenue$5.85B
Cost of Revenue$4.69B
Gross Profit$1.16B
Net Income$470.80M
EPS (Basic)$0.90
EPS (Diluted)$0.90
Shares Outstanding (Basic)521.40M
Shares Outstanding (Diluted)522.60M

Key Highlights

  • 1PACCAR's net sales and revenues grew by 13.3% year-over-year to $5.85 billion in Q1 2021.
  • 2Net income surged by 30.8% to $470.1 million, with diluted EPS rising to $1.35 from $1.03.
  • 3The Truck segment's revenue increased by 13% to $4.23 billion, supported by a 10% rise in unit deliveries.
  • 4PACCAR Parts recorded record quarterly sales of $1.16 billion, an increase of 16% year-over-year.
  • 5Financial Services segment revenue grew by 13% to $432.0 million, with income before taxes up 58% to $76.4 million.
  • 6The company successfully launched next-generation Kenworth T680 and Peterbilt 579 truck models, focusing on aerodynamics, fuel efficiency, and driver comfort.
  • 7Despite supply chain disruptions impacting deliveries, PACCAR raised its full-year outlook for PACCAR Parts sales and maintained a positive outlook for truck industry retail sales in key markets.

Frequently Asked Questions

The primary driver of PACCAR's revenue growth in the first quarter of 2021 was a significant increase in net sales and revenues from both the Truck and Parts segments. Higher truck deliveries across all markets and record parts sales contributed to the overall revenue increase.

Supply chain disruptions, particularly the shortage of semiconductors, reduced PACCAR's truck deliveries by approximately 3,000 units in the first quarter of 2021. The company anticipates this will continue to impact deliveries in the second quarter but expects improvement in the second half of the year.

PACCAR expects U.S. and Canada truck sales to be between 260,000-290,000 units, and European registrations for over 16-tonne vehicles to be between 260,000-290,000 units in 2021. For PACCAR Parts, sales are expected to increase 15-18% compared to 2020.

PACCAR is investing heavily in future technologies, including aerodynamic truck models, integrated powertrains (diesel, electric, hybrid, hydrogen fuel cell), advanced driver assistance systems, autonomous systems, connected vehicle services, and next-generation manufacturing capabilities. The company is also beginning production of battery electric customer trucks.