PACCAR Announces Third Quarter 2001 Results
BELLEVUE, Wash.--Oct. 23, 2001--PACCAR . "PACCAR earned $39.4 million ($.51 per diluted share) for the third quarter of 2001," reported Mark C. Pigott, chairman and chief executive officer. That compares with $93.1 million ($1.21 per diluted share) for the same period a year ago. Third quarter net sales and financial services revenues were $1.5 billion, compared to $1.8 billion reported for the comparable period in 2000.Net sales and financial services revenues for the first nine months of 2001 were $4.6 billion. For the first nine months of 2001, PACCAR reported net income of $123.2 million ($1.60 per diluted share) compared to $379.1 million ($4.90 per diluted share) in 2000.
Global Truck Market Update
"The truck market in North America remains challenging due to economic turbulence. PACCAR is pleased that its Kenworth, Peterbilt, DAF and Foden trucks are enhancing their global quality-leadership position," said Mark Pigott. "The benefits to PACCAR's customers, worldwide, are vehicles noted for their excellent operating performance and generating the highest residual value. PACCAR's products are supported by the broadest array of aftermarket programs and the strongest distribution network in the industry."
"PACCAR's remarkable financial performance of profitability for over 60 consecutive years reflects its premium products and balanced business approach throughout industry cycles," Pigott added. "Some competitor truck OEMs are in a difficult situation today due to their vehicles' deteriorating values and weak dealer organizations, which has resulted in significant financial losses."
"PACCAR's financial results this year reflect the lower, recessionary demand for heavy-duty trucks in North America," stated Pigott. "Industry Class 8 retail unit sales for the first nine months of 2001 were 37 percent lower than last year, and a recovery is not expected in the near-term. The industry is still being impacted by lower freight tonnage, higher operating costs and a high level of used trucks."
"In spite of these marketplace conditions, PACCAR made some modest increases in its truck production build rate for Kenworth and Peterbilt Class 8 trucks and continues to be one of the most profitable companies in the industry. In addition, PACCAR has aggressively reduced costs throughout the company," Pigott said.
David Hovind, president, added, "The European truck market is having a good year. However, the slowing Eurozone economy has caused truck production in Europe to be 10 to 15 percent lower than last year's record level. In response to lower order levels, DAF reduced production 11 percent earlier this month. DAF's new CF and LF Series continue to gain honors and its increased number of dealer locations has resulted in market share gains. The DAF LF Series was recently named as the best imported 6-tonne vehicle in Germany."
Financial Services Update
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, one of the largest full-service truck leasing companies in North America, with over 14,000 vehicles.
Financial Services third quarter revenues of $112 million were 12 percent lower than the same quarter of 2000, while pretax income was $8.2 million compared to $20.4 for last year's third quarter. For the nine-month period, revenues were $349 million compared to $352 million for the same period a year ago. Pretax income for nine months was $28.0 million compared to $58.8 million in 2000.
"PACCAR Financial's conservative approach to financing has enabled it to earn reasonable results in this difficult market," stated Michael Tembreull, vice chairman. "Credit losses in the United States continue as a result of a record number of fleet bankruptcies and truck repossessions. PACCAR Leasing is having another excellent year as more customers select leasing for their transportation solution. PACCAR Financial Europe (PFE) was successfully launched in seven Western European countries. PFE is providing DAF and Foden dealers with an industry-leading array of financial services for their customers. In addition, new information technology developments in financial services are enhancing the daily transactions between customers, dealers and all of PACCAR's finance companies."
PACCAR Winch, the largest industrial winch manufacturer in the world, had comparable earnings to the nine months of last year.
PACCAR Inc is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. It also provides financial services and distributes truck parts related to its principal business. In addition, the Bellevue, Washington-based company manufactures winches under the Braden, Gearmatic and Carco nameplates.
PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR, and its homepage can be found at www.paccar.com.
PACCAR Inc
SUMMARY INCOME STATEMENTS
(in millions/NOTE A)
Three Months Ended Nine Months Ended
September 30 September 30
--------------------------------------------------------------------
2001 2000 2001 2000
--------------------------------------------------------------------
Truck and Other:
Net sales $ 1,389.2 $ 1,648.3 $ 4,203.9 $ 5,895.8
Cost of sales 1,255.9 1,463.3 3,798.1 5,121.0
Selling, general
and administrative 90.3 92.8 281.6 304.9
Interest and other, net 1.2 .2 (1.7) (8.9)
--------------------------------------------------------------------
Truck and Other Income
Before Taxes 41.8 92.0 125.9 478.8
--------------------------------------------------------------------
Financial Services:
Revenues 111.9 126.7 348.7 352.1
Costs and expenses 103.7 106.3 320.7 293.3
--------------------------------------------------------------------
Financial Services
Income Before Taxes 8.2 20.4 28.0 58.8
--------------------------------------------------------------------
Investment income 8.5 11.8 27.3 33.7
--------------------------------------------------------------------
Total Income Before
Income Taxes 58.5 124.2 181.2 571.3
Income taxes 19.1 31.1 58.0 192.2
--------------------------------------------------------------------
Net Income $ 39.4 $ 93.1 $ 123.2 $ 379.1
====================================================================
Net Income Per Share:
Basic $ .52 $ 1.22 $ 1.61 $ 4.93
====================================================================
Diluted $ .51 $ 1.21 $ 1.60 $ 4.90
====================================================================
Weighted average number of
basic shares
outstanding 76.5 76.4 76.4 76.8
====================================================================
Dividends declared
per share $ .30 $ .30 $ .90 $ .90
====================================================================
NOTE A: Except per share amounts.
PACCAR Inc
SUMMARY BALANCE SHEETS
(in millions of dollars)
September 30 December 31
2001 2000
---------------------------------------------------------------------
ASSETS
Truck and Other:
Cash and marketable securities $ 949.7 $ 909.7
Trade and other receivables, net 507.7 530.8
Inventories 274.7 303.1
Property, plant and equipment, net 829.1 882.6
Other assets 593.6 530.5
Financial Services Assets 4,767.8 5,114.2
---------------------------------------------------------------------
$ 7,922.6 $ 8,270.9
=====================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck and Other:
Accounts payable, taxes
and other $ 1,697.5 $ 1,634.9
Dividend payable 76.4
Term debt 165.8 193.8
Financial Services Liabilities 3,810.9 4,116.7
STOCKHOLDERS' EQUITY 2,248.4 2,249.1
---------------------------------------------------------------------
$ 7,922.6 $ 8,270.9
=====================================================================