PACCAR Inc (PCAR, Financial) filed Quarterly Report for the period ended 2010-06-30.
Paccar Inc has a market cap of $16.59 billion; its shares were traded at around $45.46 with a P/E ratio of 72.1 and P/S ratio of 2.3. The dividend yield of Paccar Inc stocks is 0.8%. Paccar Inc had an annual average earning growth of 14.3% over the past 10 years.PCAR is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Bruce Kovner of Caxton Associates, Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers.
Selling, general and administrative (SG&A) expense for Truck and Other in the second quarter of 2010 was $97.3 million compared to $79.2 million in the second quarter of 2009. Year-to-date, SG&A expense was $191.4 million and $167.6 million in the first half of 2009. The higher spending reflects increased business activity world-wide, including higher sales and marketing activities ($4.9 million in the second quarter and $9.3 million in the first half of 2010) and higher pension and bonus expenses ($7.1 million in the second quarter and $6.4 million in the first half of 2010). As a percentage of sales, SG&A decreased in the second quarter to 4.4% in 2010 from 4.9% in 2009 and decreased to 4.5% in the first half of 2010 from 5.0% in the first half of 2009.
Financial Services segment revenues for the second quarter of 2010 decreased to $239.3 million from $246.6 million in the second quarter of 2009. Revenues were $485.7 million in the first half of 2010, compared to $502.4 million in the first half of 2009. The decrease in revenues in both the second quarter and first half of 2010 primarily resulted from lower average earning asset balances in all markets.
In the second quarter 2010, Financial Services income before income taxes increased by $18.4 million to $34.0 million from the $15.6 million earned in the second quarter of 2009. First half 2010 income before income taxes of $62.1 million increased $31.2 million compared to $30.9 million in the first half of 2009. The higher pre-tax income in both periods was primarily due to higher combined finance and lease margin and a lower provision for losses on receivables.
Finance margin (Interest and fee income less interest and other borrowing expenses) for the second quarter of 2010 decreased $3.5 million as the net effects of lower average finance receivables and debt of $5.8 million more than offset the benefits of lower interest rates ($2.3 million). Lease margin (Operating lease, rental and other income less Depreciation and other) increased $14.2 million in the second quarter of 2010 primarily from lower operating lease impairments and reduced losses on used trucks ($9.4 million) and higher average operating lease assets. The provision for losses on receivables for the second quarter of 2010 declined $8.9 million primarily from improvements in portfolio quality as well as a decline in the receivable balances.
Finance margin for the first half of 2010 increased $8.5 million primarily due to lower costs of economic hedges and borrowing rates ($17.7 million) that more than offset the net effects of lower average finance receivables and debt of $8.1 million. Lease margin increased $11.9 million in the first half of 2010 primarily from lower operating lease impairments and reduced losses on used trucks ($6.7 million) and higher average operating lease assets. The provision for losses on receivables for the first half of 2010 declined $12.2 million primarily from improvements in portfolio quality as well as a decline in the receivable balances. Past due accounts decreased from 4.7% in June 2009 to 4.0% in June 2010.
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Paccar Inc has a market cap of $16.59 billion; its shares were traded at around $45.46 with a P/E ratio of 72.1 and P/S ratio of 2.3. The dividend yield of Paccar Inc stocks is 0.8%. Paccar Inc had an annual average earning growth of 14.3% over the past 10 years.PCAR is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Bruce Kovner of Caxton Associates, Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers.
Highlight of Business Operations:
PACCAR recorded higher sales and net income in the second quarter and first half of 2010 compared to the prior year. Second quarter 2010 net sales and revenues were $2.46 billion compared to $1.85 billion in the second quarter of 2009. Second quarter 2010 net income was $99.6 million ($.27 per diluted share) compared to the $26.5 million ($.07 per diluted share) earned in the second quarter of 2009. First half 2010 total net sales and revenues were $4.69 billion and $3.84 billion in the first half of 2009. First half net income in 2010 was $167.9 ($.46 per diluted share) compared to $52.8 million ($.14 per diluted share) earned in the year-earlier period.Selling, general and administrative (SG&A) expense for Truck and Other in the second quarter of 2010 was $97.3 million compared to $79.2 million in the second quarter of 2009. Year-to-date, SG&A expense was $191.4 million and $167.6 million in the first half of 2009. The higher spending reflects increased business activity world-wide, including higher sales and marketing activities ($4.9 million in the second quarter and $9.3 million in the first half of 2010) and higher pension and bonus expenses ($7.1 million in the second quarter and $6.4 million in the first half of 2010). As a percentage of sales, SG&A decreased in the second quarter to 4.4% in 2010 from 4.9% in 2009 and decreased to 4.5% in the first half of 2010 from 5.0% in the first half of 2009.
Financial Services segment revenues for the second quarter of 2010 decreased to $239.3 million from $246.6 million in the second quarter of 2009. Revenues were $485.7 million in the first half of 2010, compared to $502.4 million in the first half of 2009. The decrease in revenues in both the second quarter and first half of 2010 primarily resulted from lower average earning asset balances in all markets.
In the second quarter 2010, Financial Services income before income taxes increased by $18.4 million to $34.0 million from the $15.6 million earned in the second quarter of 2009. First half 2010 income before income taxes of $62.1 million increased $31.2 million compared to $30.9 million in the first half of 2009. The higher pre-tax income in both periods was primarily due to higher combined finance and lease margin and a lower provision for losses on receivables.
Finance margin (Interest and fee income less interest and other borrowing expenses) for the second quarter of 2010 decreased $3.5 million as the net effects of lower average finance receivables and debt of $5.8 million more than offset the benefits of lower interest rates ($2.3 million). Lease margin (Operating lease, rental and other income less Depreciation and other) increased $14.2 million in the second quarter of 2010 primarily from lower operating lease impairments and reduced losses on used trucks ($9.4 million) and higher average operating lease assets. The provision for losses on receivables for the second quarter of 2010 declined $8.9 million primarily from improvements in portfolio quality as well as a decline in the receivable balances.
Finance margin for the first half of 2010 increased $8.5 million primarily due to lower costs of economic hedges and borrowing rates ($17.7 million) that more than offset the net effects of lower average finance receivables and debt of $8.1 million. Lease margin increased $11.9 million in the first half of 2010 primarily from lower operating lease impairments and reduced losses on used trucks ($6.7 million) and higher average operating lease assets. The provision for losses on receivables for the first half of 2010 declined $12.2 million primarily from improvements in portfolio quality as well as a decline in the receivable balances. Past due accounts decreased from 4.7% in June 2009 to 4.0% in June 2010.
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