PACCAR Announces Stronger First Quarter 2002 Results
BELLEVUE, Wash.--April 30, 2002--"PACCAR Inc reported higher net income for the first quarter of 2002 compared to the same period a year ago," said Mark C. Pigott, chairman and chief executive officer.Net income of $47.2 million ($.61 per share diluted) increased 7 percent from the $44.3 million ($.58 per share diluted) earned in the first quarter of 2001. First quarter net sales and financial services revenues were $1.5 billion.
"PACCAR has earned a profit for 62 consecutive years, throughout all stages of the business cycle. The market continues to recognize the superior quality of Kenworth, Peterbilt, DAF and Foden trucks," said Pigott.
Global Truck Market Update
"Industry truck orders in North America have increased in the last couple months compared to the fourth quarter 2001," noted Pigott. "It appears that most of the increase in orders is due to 'pull-forward purchases,' as fleets try to minimize the negative impact of more costly engines being introduced on October 1, 2002. While this will likely have a favorable effect on second and third quarters, the fourth quarter of 2002 could be unfavorably impacted as a result of the accelerated buying. Kenworth and Peterbilt are increasing production rates at their plants in North America in response to the higher demand for their quality vehicles, as reflected in recent market share gains."
"DAF has increased its market share for Class 8 trucks to a record 13 percent, even as European industry truck sales are 15 percent lower in 2002 compared to the near record levels of 2001," stated David Hovind, president. "The industry-leading quality of DAF trucks was highlighted in February when DAF earned the prestigious International Truck of the Year 2002 award for the LF model. DAF continues to expand and strengthen its extensive dealer network throughout Europe."
Financial Services Growth Moderates
PACCAR's Financial Services segment represents a portfolio of nearly 110,000 trucks and trailers, with total assets of $4.7 billion. Included in this segment is PACCAR Leasing, a major full-service truck leasing company in North America, with a portfolio of 14,600 vehicles.
First quarter revenues were $105 million compared to $120 million in the same quarter of 2001. Pretax income of $9.7 million declined from $11.7 million in first quarter 2001, but was 39 percent higher than the fourth quarter 2001 results. "PACCAR Financial Services companies continue to profitably support the sale of PACCAR's trucks worldwide with innovative financing products," said Mike Tembreull, vice chairman. "Fleet bankruptcies in the U.S. have moderated and used truck prices for PACCAR vehicles have improved by 10-15 percent, which has positively impacted the financial services business. PACCAR has introduced new electronic credit programs for its dealers, which are enabling them to enhance their analysis and transaction processing."
PACCAR Winch, the largest industrial winch manufacturer in the world, had earnings comparable to first quarter last year.
PACCAR 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 of dollars(a))
Three Months Ended March 31 2002 2001
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Truck and Other:
Net sales and revenues $ 1,396.7 $ 1,407.8
Cost of sales and revenues 1,255.8 1,269.4
Selling, general and administrative 88.0 96.6
Interest and other, net 2.6 (2.5)
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Truck and Other Income Before Taxes 50.3 44.3
Financial Services:
Revenues 104.8 120.4
Costs and Expenses 95.1 108.7
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Financial Services Income Before Taxes 9.7 11.7
Investment Income 9.4 9.6
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Total Income Before Income Taxes 69.4 65.6
Income Taxes 22.2 21.3
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Net Income $ 47.2 $ 44.3
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Net Income Per Share:
Basic $ .61 $ .58
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Diluted $ .61 $ .58
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Weighted average number of
basic shares outstanding 76.9 76.4
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Dividends declared per share $ .30 $ .30
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(a) Except per share amounts
PACCAR Inc
CONDENSED BALANCE SHEETS
(in millions of dollars)
March 31 Dec. 31
2002 2001
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ASSETS
Truck and Other:
Cash and marketable debt securities $ 1,048.1 $ 1,023.1
Trade and other receivables, net 460.9 396.3
Inventories 244.3 267.8
Property, plant and equipment, net 801.8 828.8
Equipment on lease, taxes and other 658.3 639.4
Financial Services Assets 4,686.6 4,758.5
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$ 7,900.0 $ 7,913.9
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LIABILITIES AND STOCKHOLDERS' EQUITY
Truck and Other:
Accounts payable, taxes and other $ 1,789.6 $ 1,709.5
Dividend payable 19.2
Term debt 141.2 141.9
Financial Services Liabilities 3,669.6 3,790.7
STOCKHOLDERS' EQUITY 2,299.6 2,252.6
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$ 7,900.0 $ 7,913.9
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