PACCAR Announces First Quarter 2001 Results
BELLEVUE, Wash.--April 24, 2001--PACCAR Inc reported lower sales and net income for the first quarter of 2001 compared with the same period a year ago, said Mark C. Pigott, chairman and chief executive officer.First quarter net sales and financial services revenues decreased to $1.5 billion, 34 percent lower than the $2.3 billion reported for the comparable period in 2000. Net income of $44.3 million ($.58 per share diluted) decreased from the $154.9 million ($1.98 per share diluted) earned in the first quarter of 2000.
Global Truck Market Update
"The financial results reflect a recessionary truck market in North America comparable to 1990/91," noted Mark Pigott. "The industry is being severely impacted by high levels of new and used truck inventory, lower freight tonnage and high fuel and insurance costs."
"In response to deteriorating industry demand, PACCAR has lowered production at its North American facilities and is continuing to aggressively reduce costs throughout the company," Pigott added. "PACCAR's U.S. and Canadian Class 8 production in the first quarter 2001 was nearly 20 percent lower compared to fourth quarter 2000. Kenworth and Peterbilt trucks' superior operating performance and industry leading residual values continue to enhance their premium image. PACCAR's quality products and services, disciplined cost structure and strong balance sheet favorably positions the company for when the truck markets recover."
David Hovind, president, said, "In Europe, the truck market is being impacted by the slowing global economy and truck production is expected to be lower by at least ten percent in 2001. DAF continues to gain market share and recently introduced two world-class truck models, the CF and LF Series. DAF has updated its entire product range in the last four years and is increasing its dealer network service points throughout Europe."
Financial Services Growth Moderates
PACCAR's Financial Services segment represents a portfolio of over 100,000 trucks and trailers with total assets of nearly $5 billion. Included in this segment is PACCAR Leasing, a major full-service truck leasing company in North America, with a portfolio of 13,500 vehicles.
First quarter revenues grew by 11 percent to $120.4 million from $108.5 million in the same quarter of 2000. Pretax income at $11.7 million declined 39 percent from last year's first quarter. "PACCAR Financial's conservative approach to the business enabled the company to maintain reasonable results in the turbulent market. The combination of increased vehicle repossessions and lower used truck prices did result in higher credit losses for PACCAR Financial," stated Michael Tembreull, vice chairman. "We are pleased that PACCAR Financial Europe is scheduled to begin business during the summer and will offer a range of industry-leading financial services to truck operators in Western Europe."
PACCAR Inc
SUMMARY INCOME STATEMENTS
(in millions of dollars(a))
Three Months Ended March 31
2001 2000
Truck and Other: ---------- ----------
Net sales $ 1,407.8 $ 2,222.8
Cost of sales 1,267.0 1,898.3
Selling, general and administrative 99.0 110.4
Interest and other, net (2.5) 1.3
---------- ----------
Truck and Other Income Before Taxes 44.3 212.8
Financial Services:
Revenues 120.4 108.5
Costs and Expenses 108.7 89.3
---------- ----------
Financial Services Income Before Taxes 11.7 19.2
Investment Income 9.6 10.8
---------- ----------
Total Income Before Income Taxes 65.6 242.8
Income Taxes 21.3 87.9
---------- ----------
Net Income $ 44.3 $ 154.9
========== ==========
Net Income Per Share:
Basic $ .58 $ 1.99
========== ==========
Diluted $ .58 $ 1.98
========== ==========
Weighted average number of
basic shares outstanding 76.4 77.7
========== ==========
Dividends declared per share $ .30 $ .30
========== ==========
(a) Except per share amounts.
PACCAR Inc
CONDENSED BALANCE SHEETS
(in millions of dollars)
March 31 Dec. 31
2001 2000
ASSETS
Truck and Other:
Cash and marketable securities $ 786.3 $ 909.7
Trade and other receivables, net 536.6 530.8
Inventories 313.2 303.1
Property, plant and equipment, net 848.5 882.6
Other assets 530.5 530.5
Financial Services Assets 4,888.4 5,114.2
---------- ----------
$ 7,903.5 $ 8,270.9
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck and Other:
Accounts payable, taxes and other $ 1,646.3 $ 1,634.9
Dividend payable 76.4
Term debt 174.7 193.8
Financial Services Liabilities 3,887.0 4,116.7
STOCKHOLDERS' EQUITY 2,195.5 2,249.1
---------- ----------
$ 7,903.5 $ 8,270.9
========== ==========