) reported a profit of $291.6 million or 82 cents per share in
the second quarter of the year, beating the Zacks Consensus
Estimate by 7 cents. However, earnings declined from $297.2
million or 83 cents per share in the second quarter of 2012.
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The marginal decline in earnings can be attributable to a 3.6%
fall in Truck, Parts and Other and Financial revenues in the
quarter to $4.3 billion. Nevertheless, revenues were higher than
the Zacks Consensus Estimate of $4.0 billion. Pre-tax income fell
3.0% to $432.9 million from $446.3 million a year ago.
Revenues in the Truck and Other segment dipped 4.3% to $4.0
billion. Pre-tax income in the segment decreased 4.8% to $343.4
million from $360.7 million a year ago.
The company's DAF trucks achieved a market share of 15.8% in the
above 16-ton market in Europe. DAF's sales were benefited by the
launches of the new DAF XF, CF and LF Euro 6 vehicles.
Industry sales in the above 16-ton truck market in Europe are
expected to be in the range of 210,000-230,000 units this year.
Meanwhile, the company expects Class 8 industry retail sales of
210,000-230,000 vehicles in 2013.
Revenues from PACCAR Financial Services (PFS) rose 8.5% to $288.8
million. Pretax profit improved 5.3% to $81.5 million from $77.4
million in the second quarter of 2012 led by growth in portfolio
balances. Currently, PFS has a portfolio of 155,000 trucks and
trailers, with total assets of $10.93 billion.
PACCAR's cash and marketable debt securities was $2.52 billion as
of June 30, 2013 compared with $2.40 billion as of December 31,
2012. Long-term remained unchanged at $150 million as of June 30,
2013 considering the same as of December 31, 2012.
In the first half of the year, cash flow from operations more
than doubled to $1.15 billion from $444.0 million a year ago due
to favorable changes in trade receivables, inventory and payables
as well as a decrease in wholesale receivables on new trucks.
Meanwhile, capital expenditures rose 29.2% to $269.7 million from
$208.7 million in the first half of 2012 due to new product
developments and increase manufacturing efficiency. The company
has targeted capital investments of $425-$475 million and R&D
expenses of $250-$275 million in 2013 for developing new products
and increase manufacturing capacity.
PCAR, a Zacks Rank #4 (Sell), is the third largest manufacturer
of heavy-duty trucks (with a capacity of more than 15 metric
tons) in the world after
), and has substantial manufacturing exposure to light/medium
trucks (with a capacity of 6-15 metric tons). The company also
provides customer support for its products with the supply of
aftermarket parts, finance and leasing services.
) with a Zacks Rank #1 (Strong Buy) is performing well in the