PACCAR Inc (PCAR, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 industrial winches under the Braden Gearmatic and Carco nameplates. (Company Press Release) PACCAR Inc has a market cap of $13.02 billion; its shares were traded at around $35.84 with a P/E ratio of 30.1 and P/S ratio of 1. The dividend yield of PACCAR Inc stocks is 2%. PACCAR Inc had an annual average earning growth of 15% over the past 10 years.
Compared to 2008, second quarter and first half 2009 total net sales and revenues and income before income taxes were negatively affected by the translation of weaker foreign currencies, primarily the euro and British pound. The translation effect decreased second quarter 2009 sales and revenues by $155.1 million and income before income taxes by $7.8 million compared to the second quarter of 2008. For the first half, the translation effect decreased sales and revenues by $358.7 million and income before income taxes by $26.0 million compared to 2008.
Truck and Other Cost of sales and revenues were $1.49 billion in the second quarter of 2009, down 53% compared to $3.20 billion in the second quarter of 2008. Cost of sales and revenues were $3.05 billion in the first half of 2009, down 51% compared to $6.28 billion in the first half of 2008. Cost of sales and revenues declined in both periods primarily due to the approximately 60% decline in world wide truck deliveries. This decline due to volume was slightly offset by higher costs primarily due to lower fixed cost coverage caused by lower factory production volumes. Also included in cost of sales are severance costs of $6.4 million for the second quarter of 2009 compared to severance costs of $.9 million in the second quarter of 2008 and $14.5 million in the first half of 2009 compared to $1.1 million in the first half of 2008.
Selling, general and administrative (SG&A) expense for Truck and Other of $79.2 million in the second quarter declined by $48.3 million and $167.6 million year-to-date declined by $86.0 million. Lower spending is a result of focused efforts to reduce costs in response to the continued decline in global economic conditions and consist primarily of lower staffing costs, lower sales and marketing spending and lower travel costs. In addition foreign currency translation effects reduced SG&A by $6.7 million and $13.3 million for the quarter and six month periods. Severance costs included in SG&A were $4.1 million in the second quarter of 2009 and $5.6 million in the first half of 2009 compared to $.1 million in both the second quarter and first half of 2008. As a percentage of sales, SG&A increased in the second quarter to 4.9% in 2009 from 3.4% in 2008 and increased to 5.0% in the first half of 2009 from 3.4% in 2008 due to lower sales volumes.
Financial Services segment revenues for the second quarter of 2009 decreased to $243.5 million from $330.5 million in the second quarter of 2008. Revenues were $498.3 million in the first half of 2009, compared to $647.9 million in the first half of 2008. The decreased revenues in both the second quarter and first half of 2009 resulted from lower earning asset balances and lower yields in all markets. Second quarter Financial Services income before income taxes was $15.6 million compared to $58.7 million in 2008 and first half income before income taxes was $30.9 million compared to $126.0 million. The decrease in both time periods was primarily due to lower finance margins resulting from the lower average earning asset balances, higher credit losses and lower yields, slightly offset by lower operating expenses.
Investment income declined to $4.9 million and $12.9 million for the second quarter and first half of 2009 compared to $22.6 million and $47.3 million for the second quarter and first half of 2008 due to lower invested balances and lower market interest rates.
Read the The complete ReportPCAR is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Arnold Schneider of Schneider Capital Management, Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers.
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 industrial winches under the Braden Gearmatic and Carco nameplates. (Company Press Release) PACCAR Inc has a market cap of $13.02 billion; its shares were traded at around $35.84 with a P/E ratio of 30.1 and P/S ratio of 1. The dividend yield of PACCAR Inc stocks is 2%. PACCAR Inc had an annual average earning growth of 15% over the past 10 years.
Highlight of Business Operations:
PACCAR recorded lower sales and net income in the second quarter and first half of 2009 compared to year-earlier levels. Second quarter 2009 total net sales and revenues decreased 55% from the prior year to $1.85 billion. Second quarter 2009 net income was $26.5 million ($.07 per diluted share) compared to $313.5 million ($.86 per diluted share) in the second quarter of 2008. First half total net sales and revenues were $3.83 billion, 52% lower compared to the first half of 2008. First half net income was $52.8 million ($.14 per diluted share) compared to $605.8 million ($1.65 per diluted share) in the year-earlier period. During the second quarter of 2009, PACCAR discontinued certain subsidies for postretirement health care plans and recorded a one time pretax benefit of $47.7 million ($30.0 million net of tax or $.08 per diluted share).Compared to 2008, second quarter and first half 2009 total net sales and revenues and income before income taxes were negatively affected by the translation of weaker foreign currencies, primarily the euro and British pound. The translation effect decreased second quarter 2009 sales and revenues by $155.1 million and income before income taxes by $7.8 million compared to the second quarter of 2008. For the first half, the translation effect decreased sales and revenues by $358.7 million and income before income taxes by $26.0 million compared to 2008.
Truck and Other Cost of sales and revenues were $1.49 billion in the second quarter of 2009, down 53% compared to $3.20 billion in the second quarter of 2008. Cost of sales and revenues were $3.05 billion in the first half of 2009, down 51% compared to $6.28 billion in the first half of 2008. Cost of sales and revenues declined in both periods primarily due to the approximately 60% decline in world wide truck deliveries. This decline due to volume was slightly offset by higher costs primarily due to lower fixed cost coverage caused by lower factory production volumes. Also included in cost of sales are severance costs of $6.4 million for the second quarter of 2009 compared to severance costs of $.9 million in the second quarter of 2008 and $14.5 million in the first half of 2009 compared to $1.1 million in the first half of 2008.
Selling, general and administrative (SG&A) expense for Truck and Other of $79.2 million in the second quarter declined by $48.3 million and $167.6 million year-to-date declined by $86.0 million. Lower spending is a result of focused efforts to reduce costs in response to the continued decline in global economic conditions and consist primarily of lower staffing costs, lower sales and marketing spending and lower travel costs. In addition foreign currency translation effects reduced SG&A by $6.7 million and $13.3 million for the quarter and six month periods. Severance costs included in SG&A were $4.1 million in the second quarter of 2009 and $5.6 million in the first half of 2009 compared to $.1 million in both the second quarter and first half of 2008. As a percentage of sales, SG&A increased in the second quarter to 4.9% in 2009 from 3.4% in 2008 and increased to 5.0% in the first half of 2009 from 3.4% in 2008 due to lower sales volumes.
Financial Services segment revenues for the second quarter of 2009 decreased to $243.5 million from $330.5 million in the second quarter of 2008. Revenues were $498.3 million in the first half of 2009, compared to $647.9 million in the first half of 2008. The decreased revenues in both the second quarter and first half of 2009 resulted from lower earning asset balances and lower yields in all markets. Second quarter Financial Services income before income taxes was $15.6 million compared to $58.7 million in 2008 and first half income before income taxes was $30.9 million compared to $126.0 million. The decrease in both time periods was primarily due to lower finance margins resulting from the lower average earning asset balances, higher credit losses and lower yields, slightly offset by lower operating expenses.
Investment income declined to $4.9 million and $12.9 million for the second quarter and first half of 2009 compared to $22.6 million and $47.3 million for the second quarter and first half of 2008 due to lower invested balances and lower market interest rates.
Read the The complete ReportPCAR is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Arnold Schneider of Schneider Capital Management, Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers.
