Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 23, 2024

PACCAR Inc

(Exact name of registrant as specified in its charter)

    Delaware

    001-14817

    91-0351110

    (State or other jurisdiction
of incorporation)

    (Commission
File Number)

    (IRS Employer
Identification No.)

777 106th Avenue NE, Bellevue, WA 98004

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (425) 468-7400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $1 par value	PCAR	The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On July 23, 2024 PACCAR Inc (the “Registrant”) issued a press release announcing its financial results for the second quarter of 2024 and announcing that it would hold a conference call with securities analysts to discuss second quarter 2024 earnings to be held that same day as more fully described in the press release attached as Exhibit 99.1 to this report.

The information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits

(d)

Exhibits.

The following is furnished as an Exhibit to this report.


Exhibit Number	Description

99.1	Press release issued July 23, 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		PACCAR Inc

Date: July 23, 2024	By:	/s/ B. J. Poplawski
		B. J. Poplawski
		Vice President and Controller

Exhibit 99.1



		PACCAR Inc
		Public Affairs Department
		P.O. Box 1518
		Bellevue, WA 98009
		Contact:		Ken Hastings
				(425) 468-7530
				ken.hastings@paccar.com

FOR IMMEDIATE RELEASE

PACCAR Achieves Excellent Quarterly Revenues and Profits

July 23, 2024, Bellevue, Washington– “PACCAR achieved excellent revenues and net income in the second quarter of 2024,” said Preston Feight, chief executive officer. “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.”

PACCAR earned net income of $1.12 billion ($2.13 per diluted share) in the second quarter compared to $1.22 billion ($2.33 per diluted share) earned in the same period last year. Second quarter net sales and financial services revenues were $8.77 billion, compared to $8.88 billion achieved in the second quarter of 2023.

PACCAR reported net income of $2.32 billion ($4.40 per diluted share) in the first half of 2024, compared to net income of $1.96 billion ($3.73 per diluted share) earned in same period last year, which included a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe. Excluding the non-recurring charge, the company earned adjusted net income (non-GAAP)1 of $2.40 billion ($4.58 per diluted share) in the first half of 2023. Net sales and financial services revenues for the first six months of 2024 were $17.52 billion, compared to $17.35 billion achieved last year.

Financial Highlights – Second Quarter 2024

Highlights of PACCAR’s financial results for the second quarter of 2024 include:

•

Consolidated net sales and revenues of $8.77 billion.

•

Consolidated net income of $1.12 billion.

•

Global truck deliveries of 48,400 units.

•

PACCAR Parts revenues of $1.66 billion.

•

PACCAR Parts pretax income of $413.8 million.

•

PACCAR Financial Services pretax income of $111.2 million.

•

Capital investments of $219.6 million and R&D expenses of $117.1 million.

•

Cash generated from operations of $440.0 million.

•

Stockholders' equity of $17.70 billion.

_________________

1 See attached supplementary information on non-GAAP financial measures.

Financial Highlights – First Half 2024

Highlights of PACCAR’s financial results for the first six months of 2024 include:

•

Consolidated net sales and revenues of $17.52 billion.

•

Consolidated net income of $2.32 billion.

•

Capital investments of $383.9 million and R&D expenses of $222.6 million.

•

PACCAR Parts pretax income of $869.6 million.

•

PACCAR Financial Services pretax income of $225.1 million.

•

Cash generated from operations of $1.91 billion.

•

Medium-term note issuances of $1.71 billion.

Peterbilt 579, Kenworth T680 and DAF XG+ Trucks

Global Truck Markets

U.S. and Canada Class 8 truck industry retail sales are estimated to be in a range of 240,000-280,000 trucks in 2024. Peterbilt and Kenworth achieved a combined class 8 market share of 31.5% in the first half of 2024, compared to 27.7% in the same period last year. “Peterbilt and Kenworth’s premium quality trucks provide exceptional durability and reliability. The Kenworth and Peterbilt industry-leading vocational trucks are an important contributor to the success of infrastructure investments in North America,” said Darrin Siver, PACCAR executive vice president.

Kenworth T880 Vocational Truck

Harald Seidel, DAF president, shared, “Aerodynamic DAF trucks are delivering the highest fuel efficiency in the industry, which reduces customers’ operating expenses.” European truck industry registrations in the above 16-tonne segment are estimated to be in a range of 260,000-300,000 vehicles this year.

Mike Dozier, PACCAR executive vice president, said, “DAF’s industry-leading quality trucks, complemented by PACCAR Parts, PACCAR Financial Services and DAF’s premium dealerships, are driving DAF Brasil to higher market share.” DAF Brasil’s market share was 10.3% in the above 16-tonne truck segment in the first six months of this year compared to 9.2% in the same period last year. The South American above 16-tonne truck market is estimated to be in the range of 105,000-115,000 units this year.

PACCAR Parts Achieves Excellent Quarterly Revenues and Profits

PACCAR Parts earned excellent quarterly pretax income of $413.8 million in the second quarter of 2024, compared to $419.3 million earned in the same period last year. PACCAR Parts achieved quarterly revenues of $1.66 billion in the second quarter, compared to $1.60 billion reported in the same period last year. PACCAR Parts first half 2024 revenues were $3.34 billion, compared to $3.22 billion in the same period last year. PACCAR Parts achieved pretax profit of $869.6 million in the first six months of 2024, compared to $857.9 million earned in the first six months of 2023.

“PACCAR Parts delivers greater uptime and profitability for customers by delivering the right part in the right place at the right time,” said 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.”

PACCAR Parts’ 19 global parts distribution centers (PDCs) support more than 2,300 DAF, Kenworth and Peterbilt dealer locations. PACCAR is constructing a new 240,000 square-foot PDC to be opened in Massbach, Germany, this year. The new PDC will enhance parts delivery to dealers and customers in the largest truck market in Europe.

Parts Distribution Center in Massbach, Germany (Rendering)

Financial Services Companies Achieve Good Quarterly Results

PACCAR Financial Services (PFS) earned pretax income of $111.2 million in the second quarter this year compared to $144.7 million in the second quarter of 2023. PFS achieved second quarter 2024 revenues of $509.8 million compared to $439.8 million in the same period last year. For the first six months of 2024, PFS earned pretax income of $225.1 million compared to $293.5 million last year. “PFS achieved good first half results due to its growing, high quality portfolio. The used truck market has normalized after a period of high volume and prices,” said Todd Hubbard, PACCAR vice president. “PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle.”

PFS has a portfolio of 229,000 trucks and trailers, with total assets of $21.33 billion. PacLease, a major full-service truck leasing company in North America, Europe and Australia with a fleet of 41,000 vehicles, is included in this segment.

“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,” said Craig Gryniewicz, PACCAR Financial Corp. president. PACCAR Financial Services has excellent access to the debt markets, and issued $1.71 billion of medium term notes during the first half of 2024.

Capital and R&D Investments in Products, Technologies and Facilities

PACCAR’s excellent long-term profits, strong balance sheet, and consistent focus on quality, technology and productivity have enabled the company to invest $8.2 billion in new and expanded facilities, innovative products and new technologies during the past decade. Capital investments have increased and are estimated to be in a range of $725-$775 million, and research and development expenses are projected to be in a range of $460-$480 million, this year. “PACCAR is investing in new powertrains, advanced manufacturing capabilities and capacity, and aftermarket distribution capabilities that will create value for our customers,” said Harrie Schippers, president and chief financial officer. “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.”

PACCAR Engine Factory in Columbus, Mississippi

PACCAR Battery Joint Venture Groundbreaking

In the second quarter, PACCAR, Cummins, Daimler Truck and EVE Energy completed the formation of their U.S. battery manufacturing joint venture, Amplify Cell Technologies, and began construction of its 21-gigawatt hour (GWh) battery factory in Marshall County, Mississippi. The factory 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,” said John Rich, PACCAR senior vice president and chief technology officer. “We are pleased to begin this exciting venture with these world class partners.”

Amplify Cell Technologies Board Members and Dignitaries, Including

U.S. Senator Cindy Hyde-Smith and Mississippi Governor Tate Reeves

PACCAR will hold a conference call with securities analysts to discuss second quarter earnings on July 23, 2024, at 9:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q2 Earnings Webcast” at PACCAR’s homepage. The Webcast will be available on a recorded basis through July 30, 2024. PACCAR shares are listed on the NASDAQ Stock Market, symbol PCAR. Its homepage is www.paccar.com.

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.

PACCAR Inc

SUMMARY STATEMENTS OF OPERATIONS

(in millions except per share amounts)


	Three Months Ended						Six Months Ended
	June 30						June 30
	2024			2023			2024			2023
Truck, Parts and Other:
Net sales and revenues	$	8,262.3		$	8,441.3		$	16,497.3		$	16,491.4
Cost of sales and revenues		6,772.3			6,851.7			13,446.1			13,344.8
Research and development		117.1			101.3			222.6			198.5
Selling, general and administrative		142.7			144.9			290.3			304.7
Interest and other (income) expenses, net		(23.6	)		(17.7	)		(50.6	)		561.1	(1)

Truck, Parts and Other Income Before Income Taxes		1,253.8			1,361.1			2,588.9			2,082.3

Financial Services:
Revenues		509.8			439.8			1,019.1			863.0
Interest and other		346.1			253.3			686.4			489.4
Selling, general and administrative		40.8			37.0			79.8			72.2
Provision for losses on receivables		11.7			4.8			27.8			7.9

Financial Services Income Before Income Taxes		111.2			144.7			225.1			293.5
Investment income		95.8			62.7			181.3			111.7

Total Income Before Income Taxes		1,460.8			1,568.5			2,995.3			2,487.5
Income taxes		338.2			347.4			677.4			532.5

Net Income	$	1,122.6		$	1,221.1		$	2,317.9		$	1,955.0

Net Income Per Share:
Basic	$	2.14		$	2.33		$	4.41		$	3.73
Diluted	$	2.13		$	2.33		$	4.40		$	3.73

Weighted Average Shares Outstanding:
Basic		525.3			523.8			525.1			523.6
Diluted		526.6			524.8			526.5			524.6

Dividends declared per share	$	.30		$	.25		$	.57		$	.50

(1) Includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims) in the first quarter 2023.

PACCAR Inc

CONDENSED BALANCE SHEETS

(in millions)


	June 30		December 31
	2024		2023
ASSETS
Truck, Parts and Other:
Cash and marketable securities	$	7,803.8	$	8,659.3
Trade and other receivables, net		2,731.3		2,198.1
Inventories, net		2,783.0		2,576.7
Property, plant and equipment, net		3,895.9		3,780.1
Equipment on operating leases and other, net		2,629.8		2,645.3
Financial Services Assets		21,332.8		20,963.9

	$	41,176.6	$	40,823.4

LIABILITIES AND STOCKHOLDERS' EQUITY
Truck, Parts and Other:
Accounts payable, deferred revenues and other	$	7,348.2	$	9,015.8
Financial Services Liabilities		16,125.5		15,928.8
STOCKHOLDERS' EQUITY		17,702.9		15,878.8

	$	41,176.6	$	40,823.4

Common Shares Outstanding		524.3		523.3

PACCAR Inc

CONDENSED CASH FLOW STATEMENTS

(in millions)


Six Months Ended June 30,	2024			2023
OPERATING ACTIVITIES:
Net income	$	2,317.9		$	1,955.0
Depreciation and amortization:
Property, plant and equipment		204.3			205.2
Equipment on operating leases and other		262.6			239.3
Net change in trade receivables, inventory and payables		(293.8	)		(194.7	)
Net increase in wholesale receivables on new trucks		(348.2	)		(815.1	)
All other operating activities, net		(233.8	)		270.6

Net Cash Provided by Operating Activities		1,909.0			1,660.3

INVESTING ACTIVITIES:
Payments for property, plant and equipment		(411.6	)		(307.1	)
Acquisitions of equipment for operating leases		(453.0	)		(256.3	)
Net increase in financial services receivables		(668.8	)		(746.6	)
Net increase in marketable debt securities		(337.3	)		(69.1	)
Proceeds from asset disposals and other		300.9			334.4

Net Cash Used in Investing Activities		(1,569.8	)		(1,044.7	)

FINANCING ACTIVITIES:
Payments of cash dividends		(1,973.8	)		(1,236.0	)
Purchases of treasury stock		(4.0	)		(3.0	)
Proceeds from stock compensation transactions		42.3			28.8
Net increase in debt and other		356.2			1,011.6

Net Cash Used in Financing Activities		(1,579.3	)		(198.6	)
Effect of exchange rate changes on cash		(70.1	)		38.0

Net (Decrease) Increase in Cash and Cash Equivalents		(1,310.2	)		455.0
Cash and cash equivalents at beginning of period		7,181.7			4,690.9

Cash and cash equivalents at end of period	$	5,871.5		$	5,145.9

PACCAR Inc

SEGMENT AND OTHER INFORMATION

(in millions)


	Three Months Ended				Six Months Ended
	June 30				June 30
	2024		2023		2024		2023
Sales and Revenues:
Truck	$	6,577.8	$	6,827.5	$	13,118.8	$	13,241.3
Parts		1,664.3		1,598.9		3,340.2		3,221.9
Financial Services		509.8		439.8		1,019.1		863.0
Other		20.2		14.9		38.3		28.2

	$	8,772.1	$	8,881.1	$	17,516.4	$	17,354.4

Pretax Profit:
Truck	$	837.3	$	948.3	$	1,718.9	$	1,842.6
Parts		413.8		419.3		869.6		857.9
Financial Services		111.2		144.7		225.1		293.5
Investment Income and Other		98.5		56.2		181.7		(506.5	)	(1)

	$	1,460.8	$	1,568.5	$	2,995.3	$	2,487.5

GEOGRAPHIC REVENUE

(in millions)


	Three Months Ended				Six Months Ended
	June 30				June 30
	2024		2023		2024		2023
United States and Canada	$	5,578.9	$	5,335.3	$	11,253.5	$	10,395.4
Europe		1,745.2		2,248.4		3,550.2		4,523.9
Other		1,448.0		1,227.4		2,712.7		2,435.1

	$	8,772.1	$	8,811.1	$	17,516.4	$	17,354.4

NEW TRUCK DELIVERIES


	Three Months Ended				Six Months Ended
	June 30				June 30
	2024		2023		2024		2023
United States and Canada		28,700		27,500		58,200		53,500
Europe		11,500		16,400		23,100		33,800
Other		8,200		8,000		15,200		15,700

		48,400		51,900		96,500		103,000

(1) Includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims) in the first quarter 2023.


PACCAR Inc
SUPPLEMENTARY INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-related claims. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies.

Adjustment for the EC-related claims relates to a pre-tax charge of $600.0 million ($446.4 million after-tax) for estimable total costs recorded in Interest and other (income) expenses, net in the first quarter 2023.

Management utilizes these non-GAAP measures to evaluate the Company’s performance and believes these measures allow investors and management to evaluate operating trends by excluding a significant non-recurring charge that is not representative of underlying operating trends.

Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows:

	Six Months Ended
($ in millions, except per share amounts)	June 30, 2023
Net income	$	1,955.0
EC-related claims, net of taxes		446.4
Adjusted net income (non-GAAP)	$	2,401.4

Per diluted share:
Net income	$	3.73
EC-related claims, net of taxes		.85
Adjusted net income (non-GAAP)	$	4.58

Document and Entity Information	Jul. 23, 2024
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0000075362
Document Type	8-K
Document Period End Date	Jul. 23, 2024
Entity Registrant Name	PACCAR Inc
Entity Incorporation State Country Code	DE
Entity File Number	001-14817
Entity Tax Identification Number	91-0351110
Entity Address, Address Line One	777 106th Avenue NE
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98004
City Area Code	(425)
Local Phone Number	468-7400
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common stock, $1 par value
Trading Symbol	PCAR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false