Paccar announces record net income in third quarter

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Updated Nov 2, 2023
Peterbilt Model 589 on highway

Paccar announced Tuesday it achieved net income of $1.23 billion ($2.34 per diluted share) in the third quarter of this year, 60% higher than the $769 million ($1.47 per diluted share) earned in the same period last year. Third quarter revenues were $8.70 billion, 23% higher than the $7.06 billion reported in the third quarter of 2022, the company says.

Paccar CEO Preston Feight says Paccar's third quarter results “reflect excellent Truck, Parts and Other gross margins of 19.5% and strong Paccar Parts profits. Paccar’s investments in innovative new DAF, Kenworth and Peterbilt trucks and enhanced manufacturing efficiency are benefiting truck owners’ operating performance and delivering strong financial results.”

He adds, â€śPaccar Parts’ excellent performance is the result of providing industry-leading technology that enhances customer uptime. Paccar Financial Services achieved strong results due to its high quality portfolio. I am very proud of our employees for producing the highest quality trucks and transportation solutions for our customers.”

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Paccar reported net income of $3.18 billion ($6.07 per diluted share) for the first nine months of 2023, including a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe, compared to $2.09 billion ($3.99 per diluted share) earned in same period last year. Excluding the non-recurring charge, the company says its earned adjusted net income (non-GAAP) of $3.63 billion ($6.92 per diluted share) in the first nine months of 2023. Net sales and financial services revenues for the first nine months of 2023 were $26.05 billion, compared to $20.69 billion achieved last year.

Among its third quarter highlights, Paccar reports Paccar Parts revenues of $1.58 billion, Paccar Parts pretax income of $412.3 million and Paccar Financial Services pretax income of $133.8 million. Through the first three quarters of the year,  Paccar Parts pretax income was $1.27 billion and cash generated from operations of $3.00 billion.

“Third quarter parts sales and profits benefited from industry-leading logistics operations in Paccar’s 18 strategically located Parts Distribution Centers (PDCs),” says Laura Bloch, Paccar vice president and Paccar Parts general manager. “Paccar Parts’ technology solutions such as Managed Dealer Inventory and innovative programs such as Fleet Services increase customers’ vehicle uptime and financial performance.”

The company also is pleased with its truck sales success and projections.

“Customers are replacing older vehicles with the new fuel-efficient Kenworth and Peterbilt trucks,” says Mike Dozier, Paccar executive vice president. “Infrastructure spending in the U.S. has been good for Kenworth and Peterbilt’s truck business. U.S. and Canada Class 8 truck industry retail sales in 2023 are estimated to be in a range of 295,000-315,000 vehicles. Class 8 truck industry retail sales for 2024 are expected to be in a range of 260,000-300,000 vehicles.

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