) posted a 30.68% rise in earnings to 94 cents per share in the
fourth quarter of 2013 from 72 cents in the same quarter of 2012,
surpassing the Zacks Consensus Estimate of 92 cents. Net income
surged 31.8% to $334.2 million from $253.5 million in the
Revenues in the quarter increased 15% to $4.6 billion,
surpassing the Zacks Consensus Estimate of $4.3 billion.
The increase in earnings was attributable to the increase in
truck and aftermarket parts sales along with pre-tax profits in
PACCAR reported earnings of $3.30 per share in 2013, up from
$3.12 per share in 2012. Earnings per share surpassed the Zacks
Consensus Estimate of $3.27.
Net income increased to $1.17 billion from $1.11 billion a
year ago. Revenues increased to $17.12 billion from $17.05
billion in 2012, exceeding the Zacks Consensus Estimate of $16.03
Revenues in the Truck, Parts and Other segment increased 16.2%
to $4.3 billion. Pre-tax income in the segment surged 42.9% to
$387.7 million from $271.3 million a year ago.
PACCAR's DAF trucks achieved a market share of 16.2% in the
above 16-ton market in Europe.
Industry sales in the above 16-ton truck market in Europe were
240,800 units in 2013, higher than the guidance of
215,000-225,000 units. Meanwhile, Class 8 industry retail truck
sales in the U.S. and Canada were 212,000 vehicles in 2013. Sales
benefited from replacement demand due to the aging truck
population and improving housing and automotive sectors.
PACCAR inaugurated its 300,000-square feet DAF assembly plant
in Brazil in Oct 2013. Industry sales of trucks with a capacity
of more than six tons in the Brazil market amounted to 149,000
units in 2013. The company expects the demand for such trucks to
exceed beyond 150,000 units in 2014.
Industry sales in the above 16-ton truck market in Europe are
expected to be in the range of 200,000-230,000 units in 2014.
Meanwhile, the company expects Class 8 industry retail sales of
210,000-240,000 vehicles in the U.S. and Canada in 2014.
Revenues in the Financial Services segment (comprising a
portfolio of 161,000 trucks and trailers, with total assets of
$11.63 billion) increased 0.6% to $299.5 million while pre-tax
income rose 14.9% to $90.4 million in the fourth quarter of
PACCAR's cash and marketable debt securities amounted to $2.93
billion as of Dec 31, 2013, compared with $2.4 billion as of Dec
31, 2012. Long-term debt remained unchanged at $150 million as of
Dec 31, 2013, compared with 2012-end.
The company's cash from operations increased significantly to
$2.38 billion in 2013 from $1.52 billion in 2012. The company
recorded capital investments of $409.5 million and research and
development (R&D) expenses of $251.4 million in 2013 for new
products and expansion of manufacturing capacity. The company has
targeted capital investments of $350-$400 million and R&D
expenses of $225-$275 million in 2014 for new products and
expansion of operating efficiency.
PACCAR, carrying a Zacks Rank #3 (Hold), is the world's
third-largest manufacturer of heavy-duty trucks (with a capacity
of more than 15 metric tons) 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 as well as aftermarket
parts, finance and leasing services.
Tesla Motors, Inc.
) that holds a Zacks Rank #1 (Strong Buy) is performing well in
the industry where PACCAR operates.
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