Paccar earned a net income of $1.12 billion in the second quarter of 2024, it reported Tuesday, with net sales and financial services revenues of $8.77 billion.
"Paccar achieved excellent revenues and net income in the second quarter of 2024," says Preston Feight, CEO. "Paccar's truck and parts operations achieved robust quarterly sales and profits due to industry-leading trucks and strong aftersales performance that enhanced customer uptime. Paccar Financial Services delivered good profitability due to its growing, high quality portfolio. I am very proud of our employees for delivering industry-leading trucks and transportation solutions to our customers."
For the first half of 2024, Paccar reported a net income of $2.32 billion, compared to a net income of $1.96 billion earned in the same time frame last year, which included a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe. Net sales and financial services revenues for the first six months of 2024 were $17.52 billion, compared to $17.35 billion last year.
Trucks
Peterbilt and Kenworth combined for a Class 8 market share of 31.5% in the first half of the year, compared to 27.7% in the same period last year.
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"Peterbilt and Kenworth's premium quality trucks provide exceptional durability and reliability," says Darrin Siver, Paccar's executive vice president. "The Kenworth and Peterbilt industry-leading vocational trucks are an important contributor to the success of infrastructure investments in North America."
Globally, Paccar delivered 48,400 units in the second quarter.
Paccar Parts
Paccar Parts notched a second quarter pre-tax income of $413.8 million, compared to $419.3 million last year. Quarterly revenues came in at $1.66 billion, slightly more than the $1.6 billion reported last year.
"Paccar Parts delivers greater uptime and profitability for customers by delivering the right part in the right place at the right time," says Laura Bloch, Paccar vice president and Paccar Parts general manager. "Paccar Parts' excellent performance reflects investments in its TRP all-makes parts program, strategic technology-driven transportation solutions such as managed dealer inventory, and a growing number of Paccar trucks with Paccar powertrains in operation."
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For the first half of the year, Paccar Parts reported $3.34 billion in revenues compared to $3.22 billion in 2023. Pretax profit came in at $869.6 million for the first half, compared to $857.9 million last year.
Paccar Parts has 19 global parts distribution centers and will open a new 240,000-square-foot PDC in Germany this year.
Financial Services
Paccar Financial Services (PFS) earned a second quarter pre-tax income of $111.2 million this year, compared to $144.7 million in Q2 2023. Revenues in the second quarter hit $509.8 million, compared to $439.8 million in the same period last year.
For the first six months of 2024, PFS had a pre-tax income of $225.1 million, compared to $293.5 million last year. It has a portfolio of 229,000 trucks and trailers and total assets of $21.33 billion, including PacLease.
"PFS achieved good first half results due to its growing, high quality portfolio," says Todd Hubbard, Paccar vice president. "The used truck market has normalized after a period of high volume and prices. PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF prodcuts, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle."
PFS issued $1.71 billion of medium-term notes in the first half of this year.
"Paccar's excellent balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents," says Craig Gryniewicz, Paccar Financial Corporation president.
Investments
Over the past decade, Paccar has invested $8.2 billion in new and expanded facilities, innovative products and new technologies, the company says. Capital investments are estimated to be $725-$775 million with research and development expenses running $460-$480 million.
"Paccar is investing in new powertrains, advanced manufacturing capabilities and capacity, and aftermarket distribution capabilities that will create value for our customers." says Harrie Schippers, president and CFO. "Paccar is investing more than $200 million in additional engine manufacturing capacity, and in the construction of a new engine remanufacturing facility in Columbus, Mississippi. Recent truck factory investments include the expansion at Kenworth Chillicothe, Ohio, and Paccar Mexico, and the DAF new electric truck assembly plant in Eindhoven, Netherlands."
Amplify Cell Technologies
Paccar, Cummins, Daimler Truck and EVEN energy completed the formation of their U.S. battery manufacturing joint venture, Amplify Cell Technologies, in the second quarter, and began construction of a 21-gigawatt hour battery factory in Marshall, Mississippi. It is expected to start production in 2027.
"Amplify Cell Technologies will enable Paccar to offer customers cost-effective premium quality battery electric powertrains that meet their operational and sustainability needs," says John Rich, Paccar senior vice president and CTO. "We are pleased to begin this exciting venture with these world-class partners."
