Q4 2019 Paccar Inc Earnings Call

As the first major truck maker to report first-quarter earnings, PACCAR Inc. (NASDAQ: PCAR) recognized the toll the coronavirus pandemic took on revenue and profits but cast a generally upbeat view of its fortunes.The parent of Kenworth Truck Co., Peterbilt Motors and DAF Trucks has been profitable for 81 consecutive years. It has every intention of making 2020 the 82nd.PACCAR set a record for parts sales in the quarter while also claiming 38% of the industry's Class 8 truck orders in March. PACCAR's inventory backlog grew with about half of the units at bodybuilders who will deliver custom units to buyers this summer.The Bellevue, Washington-based company delivered 38,400 trucks in the quarter, accounting for a 30.4% share in North America — compared to 30% for 2019 — and 16.7% share in Europe. DAF Brasil's market share increased to 8.7% compared to 6.1% market share in 2019."Our company is well built. We have a great position in terms of our liquidity, our cash position [and] product investments," PACCAR CEO Preston Feight told analysts on a conference call. "I feel pretty good."Inventory levels are rising, Feight said, but PACCAR's 3.4 months of stock is lower than the North American industry average of 3.8 months. Both figures exceed the desired two to 2.5 months of inventory-to-sales ratio.Even before the coronavirus was declared a global health crisis, PACCAR expected a difficult quarter because so many new trucks had been ordered and produced in 2018 and 2019.Gradual reopening"Our biggest focus right now is seeing our employees are well cared for, and once we take care of that, we'll ramp back up our production and align that to demand and see where that takes us in the second quarter," Feight said.PACCAR suspended production at its plants globally on March 24. U.S. facilities in Chillicothe, Ohio; Denton, Texas; and Renton, Washington, remain shuttered. Plants in Europe and Australia will be the first to resume gradual production, Feight said.View more earnings on PCAR"As we look at it, we need to have alignment with government agencies and also think about our supply base and stay aligned with them," he said.Taking employees' temperatures as they arrive at work, issuing personal protective equipment and creating distance between workers accustomed to being in close contact will all be part of the new normal for the foreseeable future.No comparisonLike most publicly traded manufacturers, PACCAR suspended financial guidance for future quarters and the full year. Feight pushed away several questions asking for hints to the future, citing an uncertain global economy.He also rejected a comparison of the COVID-19 crisis to the Great Recession of 2008-2009."I don't think it's a fair thing to think of it as an '08-'09 kind of a thing," Feight said. "Each situation is unique."We did succeed in '08 and '09 and we're an even stronger company than we were then," he said. "We have $4.3 billion in cash sitting on our balance sheet. We have great liquidity and great access to the [debt] market. That hasn't changed during this time frame."PACCAR has no manufacturing debt. And it can borrow $3 billion from committed credit facilities. The company tapped about $1 billion in the first quarter to shore up its lending business.First-quarter resultsPACCAR earned $359.4 million, or $1.03 per diluted share, in the first quarter of this year, down about 43% from the $629 million, or $1.81 per diluted share, earned in the same period last year.Revenue was $5.16 billion, down 20% from $6.49 billion earned in the first quarter of 2019.PACCAR Parts earned record quarterly pretax income of $214.7 million in the first quarter of 2020, up 3% from the $207.6 million earned in the same period last year. PACCAR Parts achieved first-quarter revenues of $998.6 million, compared to the $1 billion reported in the same period last year."The business we've built is really strong and is doing a good job of taking care of our customers, and freight continues to move in this environment," Feight said. "So we feel positive about our future and the product we have in the field and those that we're developing."See more from Benzinga * PACCAR Earnings Slow In First Quarter * PACCAR Recalls 12 Years Of Trucks For Warning Light Failures * Meritor Plants Idled And Salaries Cut In Half Temporarily(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Low orders for Class 8 trucks due to the outbreak of coronavirus are likely to have dented PACCAR's (PCAR) first-quarter 2020 revenues.

Leyland Trucks, a PACCAR company (Nasdaq:PCAR), located in Preston Lancashire, earned the prestigious Queen’s Award for Enterprise in International Trade 2020 for increasing exports by almost 50% over the last three years.

PACCAR Inc. (NASDAQ: PCAR) is recalling 455,458 trucks covering a dozen years of production because a blown fuse could prevent illumination of dashboard lights for antilock brakes or electronic stability control.If a driver is unaware of a faulty lamp, the possibility of an accident increases, according to PACCAR's submission to the National Highway Traffic Safety Administration (NHTSA). The submission did not include reports of crashes or injuries. A PACCAR spokesman declined additional comment.The noncompliance recall is the second time PACCAR, the parent company of Kenworth Truck Co. and Peterbilt Motors, has recalled trucks for the issue. PACCAR recalled 85,626 trucks from the 2015-2018 model years in August 2018."Further testing showed a larger population of vehicles was affected and proposed remedies were not effective," PACCAR told NHTSA. It also mentioned that testing was delayed because of social distancing related to the coronavirus pandemic.The trucks recalled in 2018 will need to be reprogrammed again because PACCAR indicated in the recall submitted April 6 that 100% of the recalled trucks have the issue. That NHTSA recall was 18V-368.A noncompliance recall differs from a safety recall in that the issue relates directly to compliance with a Federal Motor Vehicle Safety Standard (FMVSS) as opposed to something that happens in operation.The latest recalled Kenworth models are T170/2008-2020, T270/2008-2020, T370/2008-2020, T660/2008-2019, T680/2011-2020, T800/2008-2020, T880/2011-2020 and W900/2008-2020.From Peterbilt, models involved are 330/2008-2019, 335/2008-2011, 337/2008-2019, 340/2008-2011, 348/2008-2019, 365/2008-2019, 367/2008-2019, 384/2008-2019, 386/2008-2019, 387/2008-2016, 388/2008-2019, 389/2008-2019, 567/2008-2019, 579/2008-2019 and 587/2008-2019.Depending on the configuration of the truck, an unrelated warning lamp, such as Traction Control or Check Engine, may illuminate, PACCAR said.PACCAR will notify owners, and dealers will update the software within the cab control module for free. The recall is expected to begin June 15. It is NHTSA 20V-199.See more from Benzinga * APM Terminals Targets 'Logistics Logjams' * PPP Looks To Be Putting Money Into The Hands Of Trucking Companies Quickly * Road Builders Promote Bridge Repair For Economic Recovery(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Paccar (PCAR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

PACCAR Inc (Nasdaq: PCAR) is providing a business update in response to recent changes in customer demand and a weaker outlook for the global economy, as a consequence of the coronavirus pandemic.

Daimler Trucks North America (DTNA), the largest manufacturer of heavy-duty trucks in North America, resumed production at its U.S. plants this week, albeit with plant-specific worker protections in place.The maker of Freightliner and Western Star trucks had suspended production on March 24 on a week-by-week basis at plants in Mount Holly and Cleveland, North Carolina; Gaffney, South Carolina; and Portland, Oregon."We are going to great lengths to ensure the safety of our employees and continue to assess the situation daily," the Portland-based subsidiary of Daimler Trucks AG said in a statement. "The safety and well-being of our employees is our priority as we return to work to support the critical essential infrastructure of the country."In addition to providing PPE at our locations, we have localized task forces comprised of both plant management and union labor representation at each of our manufacturing facilities to safeguard the health of our employees and to continue to assess our measures daily."Parent company Daimler AG (OTCMKTS: DDAIF) began reopening Mercedes-Benz car plants in Europe this week as well.Other truck makers reported various states of operation.Navistar International Corp. (NYSE: NAV), which makes International trucks in Springfield, Ohio, and Escobedo, Mexico, said last week it was extending its production suspension until early May while also trying to conserve cash. The company on Tuesday said it plans to sell $500 million in senior secured debt depending on market conditions."The extent of this virus is unprecedented, and our personal lives, businesses and global economies are being impacted by events beyond our control," Navistar CEO Troy Clarke said April 14.Volvo Group, parent for Volvo Trucks North America and Mack Trucks, did not immediately provide an update on production. * Mack had suspended production through April 17 in Lehigh Valley, Pennsylvania.  * Volvo Trucks was operating a skeletal staff at its manufacturing complex in Dublin, Virginia. * An engine plant serving Volvo and Mack assembly plants was closed through April 10.PACCAR Inc. (NASDAQ: PCAR) parent of Kenworth Truck Co. and Peterbilt Motors, told analysts on its first-quarter earnings call Tuesday that it was gradually reopening plants, starting with Europe and Australia."It's going to be done on a location-by-location basis in a phased manner," PACCAR CEO Preston Feight said. "We will work through the rest of our plants in the coming weeks and make sure we take care of the employees and bring the truck factories back up and running."Truck manufacturers face a difficult environment as new equipment orders were already challenged by overproduction in 2018 and 2019.The coronavirus pandemic made the situation more dire as North American industry inventory-to-sales ratios of unsold trucks swelled to 4.1 months at the end of March compared with the desired 2.5 months, according to ACT Research.Photo credit: DaimlerSee more from Benzinga * Landstar Saw Market Deteriorate In Last Week Qf Quarter, Issues No 2Q Guidance * CSX First-Quarter Net Profit Falls But Operating Ratio Reaches Record * Get Ready For The New, Slimmer Delta(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

In trucking, where uptime can be the difference between making or losing money, major truck manufacturers are rolling out digital tools to speed parts ordering, using an app to audibly guide repairs and even arranging to transport trucks needing service.The one-day repair is a focus of all manufacturers who also are increasingly using over-the-air updates to reprogram sophisticated computer systems without the truck coming to a service center.Quick TurnaroundDaimler Trucks North America (DTNA) is pursuing several innovations to edge closer to its goal of completing all truck repairs within 24 hours.DTNA sees more efficient technicians and more work going through service bays with its Techlane, Service Pre-Authorization, and TechAssist programs. Dealership expansions are helping make that happen for Freightliner, Western Star, Freightliner Custom Chassis Corp. (FCCC), and Thomas Built Buses customers."With investments in new technologies, we could see as much as a 20% gain in technician efficiency at many dealer locations," said Paul Romanaggi, DTNA chief customer experience officer.Customers who agree to preauthorize repairs up to a certain dollar amount could get service in four hours instead of the next day, Romanaggi said.Techlane uses DTNA's big data analytics, matching warranty repair history with fault codes logged during a repair. That gives the technician a head start in diagnosing an issue by providing specific guided diagnostics to verify components identified during testing. Daimler Trucks technicians have a range of new technologies to speed service in support of the company's goal of completing repairs in 24 hours. (Photo: Daimler Trucks North America)Techlane, piloted in six dealerships in February, also logs the data from each repair, eliminating a written repair summary. When Techlane is deployed across DTNA's service network later this year, the online record will be available if the truck shows up with a future issue.TechAssist, born of a 2019 DTNA-sponsored hackathon in Austin, Texas, is a voice-controlled smartphone app that gives audible step-by-step repair instructions. The concept led to the creation of Reinforce Inc., which is working with DTNA to roll out the application to the dealer network.Better Mousetraps Separately, DTNA is launching Excelerator, a next-generation e-commerce platform to succeed its Pinnacle Truck Parts ordering system. Forty dealers helped design the digital system to find the right part at the right place and time.Excelerator preserves the local dealer-customer relationship as it searches the Dealer Management Systems (DMS) inventory, Alliance Parts stores, and DTNA's 10 North American parts distribution centers (PDCs). A completed order drops into the DMS and is immediately visible to the dealer. No additional data entry or part number input is needed.MacKay & Co., a market research and consulting firm based in Lombard, Illinois, projects online parts ordering will grow to 15% of the $30 billion truck and trailer parts market within the next three years, up from 12% in 2019."I wonder with what's going on now if there might be more of a focus on online [parts ordering] with less interaction on a face-to-face standpoint," John Blodgett, MacKay vice president of sales and marketing told FreightWaves, referring to social distancing because of the COVID-19 pandemic.DTNA expects that Excelerator will account for 25% of the company's total parts sales across 579 dealerships."As we continue our journey of digital transformation, it is critical that we provide cutting-edge solutions that will take our business and our dealers' businesses into the future," said Stefan Kurschner, DTNA Aftermarket senior vice president.Right Parts A key to same-day repairs is having the right part in the dealership when it's needed. The Dealer Inventory Alliance at Navistar International Corp. (NYSE: NAV) scans six data sources to predictively stock dealer shelves. The number of specific parts in stock is up more than 20% while the quantity of some parts is lower. Predicting what is needed replaces the traditional sell-and-replace approach.Dealer Transport Mack Trucks dealer Vision Truck Group in Cambridge, Ontario, began minimizing face-to-face interaction while servicing trucks in 2019 — before the pandemic — by going paperless and using Mack's web-based service management system, Mack ASIST. Technicians receive and view work assignments on their iPads. Fleet managers can see work being completed.Another Mack dealer, TranSource located in Colfax, North Carolina, offers pickup-and-delivery commercial driver's license (CDL) transport to help customers short-staffed because of the pandemic.Mack dealers are using online tools to support social distancing and transporting trucks needing service when staff shortages due to COVID-19 make it hard for customers to bring to dealerships. (Photo: Mack Trucks)Just Grow, Baby PACCAR Inc. (NASDAQ: PCAR), parent of the Peterbilt Motors and Kenworth Truck Co. brands, is growing its investment in its e-commerce parts platform and adding two new PDCs to its 18 distribution centers."It's not just about parts and storing, it's about getting them to the customers as quickly as possible," PACCAR CEO Preston Feight said on the company's first-quarter earnings call on April 21. "One of the things that's been nice to watch is their e-commerce programs and the way they're handling our customers and working directly with customers and dealers."See more from Benzinga * Autopsy Of A Recall: Navistar Engine Issue Gets Special Attention * Cummins' Melting Fuel Heater Leads To Big Navistar Recall * Daimler Trucks Cautiously Resumes US Production(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

PACCAR Inc. (NASDAQ: PCAR) reported slowing but solid revenue and profits in the first quarter despite shuttering its truck manufacturing plants in late March because of the coronavirus pandemic.The parent company of Kenworth Truck Co., Peterbilt Motors and DAF Trucks earned $359.4 million, or $1.03 per diluted share, in the first quarter of this year, down about 43% from the $629.0 million, or $1.81 per diluted share, earned in the same period last year.Revenue was $5.16 billion, down 20% from $6.49 billion earned in the first quarter of 2019.The January to March period was already expected to be tough because of slowing orders for new Class 8 trucks. During its fourth quarter call with analysts, PACCAR forecast first-quarter deliveries to decline 5-7% with gross margins falling 14% from 14.4% compared with the October-December 2019 period.Then the coronavirus pandemic struck."First quarter truck deliveries were impacted by the temporary closures of PACCAR truck manufacturing facilities worldwide, which began March 24, resulting from government coronavirus mandates," CEO Preston Feight said in a statement.PACCAR made up for some of the lost truck business through stronger parts sales, which Feight said "supported the shipment of medical supplies, food, infrastructure material and essential goods to our communities around the world."PACCAR Parts earned record quarterly pretax income of $214.7 million in the first quarter of 2020, up 3% from the $207.6 million earned in the same period last year. PACCAR Parts achieved first quarter revenues of $998.6 million, compared to the $1.0 billion reported in the same period last year.Photo: KenworthSee more from Benzinga * Independent Truckers Stage Rally Along Houston Freeway To Protest Low Pay * Colombian Authorities Investigate Ship Captain's Death * Port Of Alaska Volumes Remain Healthy(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Investing.com - PACCAR (NASDAQ:PCAR) reported on Tuesday first quarter earnings that missed analysts' forecasts and revenue that fell short of expectations.

Check out the actions taken by various carmakers in the wake of coronavirus crisis.

The profit numbers were good for the first months of 2020. Then sales dropped sharply, so Paccar put the brakes on capital and research and development spending.

Overall first-quarter 2020 earnings and revenues for the auto sector are projected to be down 82.2% and 13% year over year, respectively.

Q1 2020 Paccar Inc Earnings Call

Paccar (PCAR) delivered earnings and revenue surprises of -14.88% and -5.13%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?

PACCAR (PCAR) projects capex of $525-$575 million for the ongoing year.

PACCAR Inc’s (Nasdaq: PCAR) Board of Directors declared a regular quarterly cash dividend of thirty-two cents ($.32) per share, payable on June 2, 2020, to stockholders of record at the close of business on May 12, 2020.

Earnings of PACCAR (PCAR) and O'Reilly (ORLY) decline 43% and 2%, respectively, in first-quarter 2020.

"PACCAR (Nasdaq: PCAR) reported good revenues and net income for the first quarter of 2020," said Preston Feight, chief executive officer. "First quarter truck deliveries were impacted by the temporary closures of PACCAR truck manufacturing facilities worldwide, which began March 24, resulting from government coronavirus mandates. PACCAR Parts achieved record results as they supported the shipment of medical supplies, food, infrastructure material and essential goods to our communities around the world. I am very proud of our employees, their support of each other, and their commitment to deliver essential products and services to our customers."