Paccar's first quarter 2024 financial results included a jump in revenues and record parts revenue, the company announced Tuesday.
"Paccar reported excellent revenues and net income in the first quarter of 2024," says Preston Feight, CEO. "Paccar's results reflect ongoing demand for premium quality DAF, Peterbilt and Kenworth trucks, aftermarket parts and financial services."
Quarterly revenues were $8.74 billion in the first quarter, compared to $8.47 billion in Q1 2023. Net income was $1.2 billion, or $2.27 per diluted share. Last year, Q1 net income was $733.9 million ($1.40 per diluted share), including a $446.4 million after-tax, non-recurring charge related to litigation in Europe. Excluding that charge, the company earned $1.18 billion ($2.25 per diluted share) in the first quarter of last year.
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"Paccar's long-term investments in new truck models, advancing manufacturing and technology-enabled aftermarket solutions are contributing to Paccar's strong operating margins," Feight says. That includes record Paccar Parts revenue of $1.68 billion and a record pretax income of $455.8 million.
In the first quarter of 2023, Paccar parts earned $438.6 million, the company says, and had $1.62 billion in Q1 2023 revenues. This year, first quarter revenues were another record: $1.68 billion.
"Paccar Parts provides strategic, technology-driven transportation solutions that deliver greater uptime and profitability for customers," says Laura Bloch, Paccar vice president and Paccar Parts general manager. "Paccar Parts' excellent performance reflects investments in its TRP all-makes parts and TRP stores, technologies such as managed dealer inventory, and a growing number of Paccar trucks with Paccar powertrains in operation."
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Paccar Parts' TRP brand is celebrating 30 years in 2024. It offers more than 157,000 parts for all makes and models of trucks, trailers and buses. Paccar Parts maintains 19 global parts distribution centers supporting more than 2,300 DAF, Kenworth and Peterbilt dealer locations. Paccar is building a new, 240,000-square-foot parts distribution center in Germany, supporting the European market, that will open later this year.
That center is among Paccar's $7.9 billion investment in facilities, products and technologies in the last 10 years. In the first quarter of 2024, Paccar sunk $164.3 million into capital projects and $105.5 million in research and development expenses.
"Capital expenditures are projected to be in the range of $700-$750 million and research and development expenses are estimated to be in the range of $460-$500 million in 2024," says Harrie Schippers, president and CFO. "Paccar is increasing its investment in new powertrains, advanced manufacturing capabilities and capacity, and aftermarket distribution capabilities that will create value for our customers."
Paccar is also building an advanced battery cell manufacturing plant in Marshall County, Miss., in the second quarter of this year, with production starting in 2027. The company anticipates investing $600-$900 million in the joint venture.
The company also looked ahead to truck demand in North America and around the world. Mike Dozier, Paccar executive vice president, says that North American truck demand is being driven by increased infrastructure spending. U.S. and Canada Class 8 retail sales are estimated to be 250,000-290, 000 trucks this year, with Kenworth and Peterbilt holding a combined Class 8 market share of 30.3% in the first quarter. That's an increase over last year, which was 29.5%.
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European truck industry registrations above 16 tonnes are projected to be between 260,000-300,000 trucks for 2024. In South America, that market is projected to be 105,000-115,000 trucks.
