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PACCAR Inc Reports Operating Results (10-Q)

November 08, 2010 | About:

10qk

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PACCAR Inc (PCAR) filed Quarterly Report for the period ended 2010-09-30.

Paccar Inc has a market cap of $20.14 billion; its shares were traded at around $55.25 with a P/E ratio of 58.16 and P/S ratio of 2.85. The dividend yield of Paccar Inc stocks is 0.65%. Paccar Inc had an annual average earning growth of 14.3% over the past 10 years.

Highlight of Business Operations:

PACCAR recorded higher sales and net income in the third quarter and first nine months of 2010 compared to the prior year. Third quarter 2010 net sales and revenues were $2.54 billion compared to $2.01 billion in the third quarter of 2009. Third quarter 2010 net income was $119.9 million ($.33 per diluted share) compared to the $13.0 million ($.04 per diluted share) earned in the third quarter of 2009. Through the first nine months of 2010, total net sales and revenues were $7.24 billion and $5.85 billion in the first nine months of 2009. Net income in the first nine months of 2010 was $287.8 million ($.79 per diluted share) compared to $65.8 million ($.18 per diluted share) earned in the prior year period.

Truck and Other Cost of sales and revenues were $2.02 billion in the third quarter of 2010 compared to $1.65 billion in the third quarter of 2009. Cost of sales and revenues for the quarter increased primarily due to a higher volume of truck deliveries ($326 million), a higher average cost per truck ($64 million) and a higher volume of parts sold ($45 million), partially offset by lower currency translation ($49 million). Cost of sales and revenues were $5.74 billion in the first nine months of 2010 compared to $4.70 billion in the first nine months of 2009. Cost of sales and revenues for the nine months increased primarily due to higher truck deliveries ($821 million), a higher average cost per truck ($81 million), higher parts sales volume ($124 million) and currency translation ($48 million). The increase in average cost per truck is primarily due to the higher content of EPA 2010 emission vehicles in the U.S. and Canada.

Financial Services segment revenues for the third quarter of 2010 decreased to $238.3 million from $252.5 million in the third quarter of 2009. Revenues were $724.0 million in the first nine months of 2010, compared to $754.9 million in the first nine months of 2009. The decrease in revenues in both the third quarter and first nine months of 2010 primarily resulted from lower average earning loan and finance leases and dealer wholesale financing assets in all markets ($19.3 million for the three months ended September 30, 2010 and $66.9 million for the first nine months of 2010), partially offset by higher equipment on operating lease assets and rental utilization ($6.9 for the three months ended September 30, 2010 and $34.4 for the first nine months of 2010).

In the third quarter of 2010, Financial Services income before income taxes increased by $23.4 million to $41.5 million from the $18.1 million earned in the third quarter of 2009. Income before income taxes in the first nine months of 2010 was $103.6 million, an increase of $54.6 million compared to $49.0 million in the first nine months of 2009. The higher pre-tax income in both periods was primarily due to higher combined finance and lease margin ($11.3 million for the third quarter and $31.7 million year-to-date) and a lower provision for losses on receivables ($12.9 million for the third quarter and $25.1 million year-to-date).

2010 truck sales and revenues in the U.S. and Canada during the third quarter of $1.16 billion and $3.24 billion in the first nine months increased from $.90 billion and $2.54 billion in the comparable periods in 2009. For the third quarter and year-to-date, the increase was primarily due to higher new truck deliveries ($53 million for the third quarter and $260 million year-to-date), higher average selling prices on new trucks sold ($147 million for the third quarter and $251 million year-to-date) and higher aftermarket parts sales ($58 million for the third quarter and $132 million year-to-date). Year-to-date, the increased truck deliveries reflect an increase in the size of the truck market (90,500 units in the first nine months of 2010 compared to 75,600 units in the first nine months of 2009).

2010 truck sales and revenues in Mexico, Australia and export markets during the third quarter of $.42 billion and $1.08 billion in the first nine months of 2010 increased compared to $.27 billion and $.64 billion in the comparable periods in 2009. For the third quarter and year-to-date, the increase was primarily due to higher new truck deliveries ($99 million for the third quarter and $384 million year-to-date) from increased market demand as well as currency translation increases of $11 million and $69 million, respectively.

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