Earnings Results
- Revenues: Achieved $8.74 billion in revenues.
- Net Income: Reported net income of $1.2 billion, comparable to adjusted net income of $1.18 billion in the first quarter of the previous year.
- Truck Parts and Other Gross Margins: Reported at 19% in the first quarter.
- PACCAR Parts: Achieved record quarterly pretax income of $456 million, a 6% increase from the $439 million earned in the first quarter of 2023.
- Quarterly Parts Revenues: Increased to $1.68 billion, indicating continued growth following a record-setting 2023.
- PACCAR Financial: Reported a pretax income of $114 million, comparable to the fourth quarter of 2023.
Future Guidance
- Truck Deliveries: Anticipated approximately 48,000 truck deliveries in the second quarter.
- Gross Margins: Anticipated gross margins to be strong, in the range of 18% to 18.5% for the second quarter.
- Parts Sales Growth: Estimated parts sales growth of 4% to 6% in the second quarter, following last year’s record performance.
- Capital Investments: Planning capital investments in the range of $700 million to $750 million for 2024.
- R&D Expenses: Projecting R&D expenses to be between $460 million to $500 million, focusing on technology and innovation, including clean diesel engines, electric powertrains, advanced driver assistance systems, and new connected vehicle services.
Trends, Market Conditions, Sentiment
- U.S. Economy and Truck Market: GDP is estimated to grow 2.4% with a resilient labor market and healthy consumer spending. The vocational sector remains strong due to continued infrastructure investments. The less than truckload market performs well, despite a softer truckload segment.
- Market Share: Kenworth and Peterbilt share increased to 30.3% in the first quarter, up from 27% in the same period last year.
- European Truck Market: In Europe, both the economy and the truck market are softer this year, although DAF’s premium new trucks continue to offer the latest technology and best operating efficiency.
- South American Market: The South American above 16-tonne truck market is expected to range from 105,000 to 115,000 vehicles, with DAF achieving a record 10.7% share in Brazil during the first quarter.
- Investments in Technology and Capacity: Recognizing the growth opportunities, particularly in battery joint ventures and expansions in manufacturing capacity to support future growth.
Notable Quotes
- ”PACCAR achieved excellent revenues and net income in the first quarter due to the strong performance of its truck, aftermarket parts, and financial services businesses."
- "PACCAR Parts achieved record quarterly pretax income…and we are pleased with the continued growth at PACCAR Parts after a record-setting 2023."
- "PACCAR’s industry-leading trucks, expanding parts business, best-in-class financial services, and advanced technology strategy position the company well for an excellent future."
- "PACCAR achieved an industry-leading return on invested capital of 28% in the first quarter."
- "We expect 2024 to be an excellent year.”
These points encapsulate the financial achievements and future outlook provided during PACCAR’s first quarter 2024 earnings call, highlighting the company’s strategic positioning and expectation for continued growth amidst changing market conditions.