Another quarter, another record performance for Paccar Inc.
The medium- and heavy-duty truck and engine maker reported a 70% increase in second-quarter profits and a 24% increase in sales. It delivered 51,900 trucks across its Kenworth, Peterbilt and DAF Trucks brands.
However, investors drove Paccar’s share price (NASDAQ: PCAR) lower by 3.80% in midday trading Tuesday to $85.33. Shares have retreated since closing at a record $89.42 last Tuesday. They were up 34.4% year to date through Monday compared to the S&P 500 gain of 18.6%. The company last week raised its quarterly dividend by 8% to 27 cents from 25 cents.
By the numbers
Key figures from Paccar’s second-quarter results:
- Record net sales and revenues of $8.44 billion compared to $6.78 billion a year ago..
- Record net income of $1.22 billion, or $2.22 per share versus $720.4 million, or $1.37, a year ago.
- Parts revenues of $1.6 billion and pretax income of $419.3 million, 19% higher than the $353.3 million earned in the same period last year.
- Financial Services pretax income of $144.7 million in line with $144.4 million in the second quarter of 2022.
- Gross margin improved to 18.8% from 14.4%.
“Customers are updating their fleets to take advantage of Peterbilt and Kenworth’s industry-leading fuel efficiency and reliability,” Darrin Siver, Paccar executive vice president, said in a news release. “Our factory production schedules are full for the year.”
After more than two years of supply chain disruptions, truck makers again are running close to full production. In reporting Q2 orders last week, Volvo Group said it is keeping a close eye on order intake while working down a backlog of truck orders.
Parts business shines again
CEO Preston Fieght pointed to the sales and pretax performance of the Paccar Parts segment, which set records in each of the last three quarters.
“Paccar Parts’ Managed Dealer Inventory program deploys predictive data analytics to recommend the optimal mix of truck parts for dealers’ inventory each month,” said Laura Bloch, Paccar Parts general manager and a Paccar vice president.
The company’s 18 global parts distribution centers cover a total of 3.3 million square feet. They support more than 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations and more than 250 aftermarket outlets. A 19th PDC opens in Massbach, Germany, in 2024.
Expanded fuel cell partnership with Toyota
On the technology side, Paccar and Toyota expanded joint efforts to develop and produce zero-emissions hydrogen fuel cell Kenworth T680 and Peterbilt Model 579 trucks. The second-generation fuel cell modules go into production this year at Toyota’s manufacturing complex in Georgetown, Kentucky. Initial deliveries are planned for 2024.
Though most of the attention for zero-tailpipe-emissions trucks goes to battery-electric trucks, Paccar recognizes that batteries have range limitations and long charge times that cut into efficiency for long-haul freight. Paccar offers battery electric models with single-charge driving range of about 150 miles.New models in planning will increase the range.
Editor’s note: Updates throughout with additional Q2 details.
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