PACCAR Announces First Quarter Revenues and Earnings

  PACCAR Announces First Quarter Revenues and Earnings

               New DAF, Kenworth and Peterbilt Trucks Launched

Business Wire

BELLEVUE, Wash. -- April 23, 2013

“PACCAR (Nasdaq:PCAR) reported good revenues and net income for the first
quarter of 2013,” said Mark Pigott, chairman and chief executive officer.
“PACCAR’s truck segment results compared to last year reflect a decline in
industry truck sales in North America due to slower economic growth. PACCAR
generated steady aftermarket parts and service business and strong PACCAR
Financial Services performance. I am very proud of our 21,700 employees who
have delivered industry leading products and services to our customers

New Peterbilt Model 579, Kenworth T680 and DAF XF Euro 6 Trucks (Photo:
Business Wire)

New Peterbilt Model 579, Kenworth T680 and DAF XF Euro 6 Trucks (Photo:
Business Wire)

PACCAR earned $236.1 million ($.67 per diluted share) for the first quarter of
2013 compared to $327.3 million ($.91 per diluted share) in the first quarter
last year. First quarter 2013 net sales and financial services revenues were
$3.92 billion compared to $4.78 billion reported for the first quarter of

“PACCAR’s strong balance sheet and positive cash flow have enabled the company
to invest over $1.5 billion in new products and services in the last two
years. PACCAR recently launched the new DAF CF Euro 6 and LF Euro 6, the
Kenworth T880 and the Peterbilt Model 567 trucks. These new vehicles
complement the new DAF XF Euro 6, the Kenworth T680 and the Peterbilt Model
579 trucks launched in 2012. PACCAR’s range of advanced, fuel-efficient
engines has also expanded with the recent launch of the PACCAR MX-11 engine.
These new products will contribute to the company’s long-term growth,” added
Pigott. PACCAR achieved a record 16.0 percent share of the above 16-tonne
market in Europe and a record 30.6 percent share of the Class 8 North American
truck market in 2012.

Highlights – First Quarter 2013

Highlights of PACCAR’s results during the first quarter of 2013 include:

  *Consolidated sales and revenues of $3.92 billion.
  *Net income of $236.1 million.
  *Manufacturing cash and marketable securities of $2.38 billion.
  *Cash generated from operations of $384.0 million.
  *Financial Services pretax income of $80.1 million.
  *Research and development expenses of $72.1 million.
  *Capital investments of $97.1 million.
  *Record shareholders’ equity of $5.95 billion.

Global Truck Markets

“DAF continues to be the market share leader in the European tractor market
and has the second highest market share in the above 16-tonne segment in
Europe. Customers recognize DAF’s product quality leadership, low operating
costs and excellent resale value,” said Harrie Schippers, DAF president.
“DAF’s range of industry leading vehicles has been enhanced by the launch of
the new DAF XF, CF and LF Euro 6 vehicles. It is estimated that industry sales
in the above 16-tonne truck market in Europe this year will be in the range of
210,000-235,000 units compared to 222,000 units last year.”

“Class 8 industry retail sales for the U.S. and Canada in 2013 are expected to
be in a range of 210,000-240,000 vehicles, compared to the 225,000 vehicles
sold in 2012, driven primarily by the ongoing replacement of the aging truck
population, and projected economic growth in the second half,” said Dan Sobic,
PACCAR executive vice president. “The truck market should benefit from
improvements in job growth and auto production, as well as increased housing
starts and construction activity. Annual replacement demand for the U.S. and
Canadian truck market is estimated to be approximately 225,000 units,” added

Kenworth T880 and Peterbilt Model 567 Launched

Kenworth and Peterbilt launched their new range of vocational vehicles at the
Mid-America truck show held in Louisville, Kentucky, last month. “The new
Kenworth T880 and Peterbilt Model 567 trucks expand PACCAR’s offering in the
construction market and complement the Kenworth T680 and Peterbilt Model 579
vehicles that were launched in 2012 for the on-highway markets,” said Bob
Christensen, PACCAR executive vice president and chief financial officer. The
Kenworth T880 and Peterbilt Model 567 are focused on the construction, utility
and refuse markets. These lightweight vehicles utilize a new 2.1 meter-wide
stamped aluminum cab and deliver excellent durability and reliability in
vocational markets.

South American Expansion Update

PACCAR continued construction of its new 300,000-square-foot DAF assembly
facility in Ponta Grossa, Brasil. “Brasil is a major truck market with
industry sales above six tonnes expected to increase in 2013 to over 140,000
units. The DAF vehicle range offers superior quality, low operating costs,
excellent driveability and maneuverability, and the PACCAR MX-13 engine,” said
Marco Davila, DAF Brasil president. “The production of DAF trucks in Brasil in
late 2013 is an exciting development which will add to PACCAR’s sales in South

DAF Launches New CF and LF Euro 6 Models

DAF Trucks launched the new, versatile CF and LF Euro 6 truck models at the
Commercial Vehicle Show in Birmingham, the United Kingdom, earlier this month.
The DAF CF Euro 6 has been developed for a wide number of applications,
ranging from regional transportation to heavy construction. The DAF LF Euro 6
is designed for distribution and urban delivery. “The launch of the new DAF CF
and LF vehicles and the introduction of the new DAF XF model last year,
provide a complete range of exciting DAF Euro 6 vehicles,” shared Harrie
Schippers, DAF president.

New PACCAR MX-11 Engine Introduced

PACCAR is expanding its range of PACCAR engines with the introduction of the
new PACCAR MX-11 engine, with an output of up to 440 hp and torque of 1,550
lb-ft. It is scheduled to be available in the new DAF CF and XF Euro 6 models
in the fall of 2013. “The new PACCAR MX-11 engine is compact, lightweight and
provides a quiet operating environment for the driver, while delivering
optimum fuel efficiency, excellent performance and reliability,” said Ron
Borsboom, DAF chief engineer. The PACCAR MX-11 engine is planned to be
available in Kenworth and Peterbilt trucks in 2015.

“PACCAR has installed over 35,000 MX-13 engines in Kenworth and Peterbilt
trucks in North America since the start of production in mid-2010. The PACCAR
MX-13 engine for 2013 includes a new high-pressure common rail fuel injection
system, enhanced on-board diagnostics and an expanded rating of 500 hp and
1850 lb-ft of torque,” said Craig Brewster, PACCAR vice president. “In the
first quarter of 2013, the PACCAR MX-13 engine was installed in 29 percent of
Kenworth and Peterbilt heavy-duty trucks.”

Capital Investments, Product Development and Industry Recognition

PACCAR’s excellent long-term profits, strong balance sheet, and intense focus
on quality, technology and productivity have enabled the company to invest
$5.4 billion in capital projects, innovative products and new technologies
during the past decade. Manufacturing capacity expansion of over 15 percent in
the last five years and annual productivity improvements have enhanced the
capability of the company’s manufacturing and parts facilities. Capital
investments of $400-$500 million and R&D expenses of $250-$275 million are
targeted in 2013 for new products and increased manufacturing capacity.

PACCAR is enhancing its global network of 15 parts distribution centers
(PDCs). In March, PACCAR opened a new $30 million, 280,000-square-foot PDC in
Eindhoven, the Netherlands. The PDC in Lancaster, Pennsylvania, doubled in
size with the addition of 60,000 square feet. PACCAR’s new Brasil PDC will
open later in 2013 in Ponta Grossa, Brasil, supporting the launch of DAF

The American Truck Dealers (ATD) honored the Kenworth T680, with the PACCAR
MX-13 engine, as the “2013 ATD Heavy-Duty Commercial Truck of the Year.”
“Kenworth is very pleased to be recognized as the 2013 ATD Heavy-Duty Truck of
the Year,” said Gary Moore, Kenworth general manager and PACCAR vice
president. “The Kenworth T680 establishes a new standard of excellence in the
industry with its superior fuel efficiency, exceptional aerodynamic styling
and premium automotive interior.”

Financial Services Companies Achieve Strong Results

PACCAR Financial Services (PFS) has a portfolio of 153,000 trucks and
trailers, with total assets of $10.73 billion. PACCAR Leasing, a major
full-service truck leasing company in North America and Europe with a fleet of
34,000 vehicles, is included in this segment. PFS’s first quarter 2013 pretax
income was $80.1 million compared to the $71.3 million earned in the first
quarter of 2012. First quarter 2013 revenues were $293.1 million compared to
$261.4 million in 2012. “During the first quarter of 2013, profit increased
due to growth in portfolio balances and lower borrowing costs,” said Bob
Bengston, PACCAR vice president. “Dealers and customers appreciate PFS’s
commitment to providing technology solutions, excellent customer service and
dedicated support of the transportation industry in all phases of the business

“PACCAR’s excellent balance sheet, complemented by its A+/A1 credit ratings,
enables PFS to offer competitive financing to Kenworth, Peterbilt and DAF
dealers and customers in 23 countries on four continents,” said Todd Hubbard,
PACCAR Financial Corp. president. “A growing asset base and excellent
portfolio performance are generating improved earnings.”

PACCAR is a global technology leader in the design, manufacture and customer
support of high-quality light-, medium- and heavy-duty trucks under the
Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures
advanced diesel engines, provides financial services and information
technology, and distributes truck parts related to its principal business.
PACCAR shares are traded on the Nasdaq Global Select market, symbol PCAR, and
its homepage is

PACCAR will hold a conference call with securities analysts to discuss first
quarter earnings on April 23, 2013, at 9:00 a.m. Pacific time. Interested
parties may listen to the call by selecting “Live Webcast” at PACCAR’s
homepage. The Webcast will be available on a recorded basis through April 30,

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

(in millions except per share amounts)
                                                     Three Months Ended
                                                 March 31
                                                 2013        2012
Truck, Parts and Other:
Net sales and revenues                               $ 3,631.2     $ 4,514.7
Cost of sales and revenues                             3,189.3       3,919.9
Research and development                               72.1          72.3
Selling, general and administrative                    117.7         125.8
Interest and other expense (income), net           1.5        (2.1    )
Truck, Parts and Other Income Before Income            250.6         398.8
Financial Services:
Revenues                                               293.1         261.4
Interest and other                                     183.0         158.5
Selling, general and administrative                    23.5          24.1
Provision for losses on receivables                6.5        7.5     
Financial Services Income Before Income Taxes          80.1          71.3
Investment income                                  6.5        8.9     
Total Income Before Income Taxes                       337.2         479.0
Income taxes                                       101.1      151.7   
Net Income                                        $ 236.1     $ 327.3   
Net Income Per Share:
Basic                                             $ .67       $ .92     
Diluted                                           $ .67       $ .91     
Weighted Average Shares Outstanding:
Basic                                              354.0      357.0   
Diluted                                            354.8      357.8   
Dividends declared per share                      $ .20       $ .18     

(in millions)
                                                    March 31       December 31
                                                2013         2012
Truck, Parts and Other:
Cash and marketable debt securities                 $ 2,379.8     $  2,395.9
Trade and other receivables, net                      1,096.0         902.1
Inventories                                           818.2           782.4
Property, plant, and equipment, net                   2,333.4         2,312.9
Equipment on operating lease and other                1,478.4         1,439.0
Financial Services Assets                         10,728.3     10,795.5
                                                $ 18,834.1   $  18,627.8
Truck, Parts and Other:
Accounts payable, deferred revenues and other       $ 3,829.0     $  3,651.3
Current portion of long-term debt                     150.0
Long-term debt                                                       150.0
Financial Services Liabilities                        8,907.2        8,979.6
STOCKHOLDERS' EQUITY                              5,947.9      5,846.9
                                                $ 18,834.1   $  18,627.8
Common Shares Outstanding                         353.7        353.4

PACCAR Inc                                                   
(in millions)
                                                   Three Months Ended
                                               March 31
                                               2013          2012
Net income                                         $ 236.1         $ 327.3
Depreciation and amortization:
Property, plant and equipment                        45.0            48.6
Equipment on operating leases and other              139.7           122.0
Net increase in wholesale receivables on new         (14.4   )       (257.7  )
Net decrease (increase) in sales-type
finance leases and dealer direct loans on            14.9            (16.4   )
new trucks
All other operating activities                   (37.3   )    (97.5   )
Net Cash Provided by Operating Activities            384.0           126.3
Acquisition of property, plant and equipment         (138.4  )       (70.7   )
Acquisition of equipment for operating               (251.5  )       (229.3  )
Net increase in financial services                   (15.4   )       (126.9  )
Net increase in marketable securities                (19.0   )       (26.3   )
All other investing activities                   82.8        88.1    
Net Cash Used in Investing Activities                (341.5  )       (365.1  )
Cash dividends paid                                  (70.7   )       (314.4  )
Purchase of treasury stock                                           (15.6   )
Stock compensation transactions                      7.6             4.9
Net increase in debt                             25.7        347.5   
Net Cash (Used in) Provided by Financing             (37.4   )       22.4
Effect of exchange rate changes on cash          (16.1   )    32.8    
Net Decrease in Cash and Cash Equivalents            (11.0   )       (183.6  )
Cash and cash equivalents at beginning of        1,272.4     2,106.7 
Cash and cash equivalents at end of period      $ 1,261.4    $ 1,923.1 

(in millions)
                                  Three Months Ended
                              March 31
                              2013          2012
Sales and Revenues:
Truck                             $ 2,933.3      $ 3,794.4
Parts                               667.4           680.4
Financial Services                  293.1           261.4
Other                           30.5        39.9
                              $ 3,924.3    $ 4,776.1
Pretax Profit:
Truck                             $ 165.0        $ 300.3
Parts                               95.3           101.6
Financial Services                  80.1           71.3
Investment Income and Other     (3.2    )    5.8
                              $ 337.2      $ 479.0
                                  Three Months Ended
                              March 31
                              2013          2012
United States and Canada          $ 2,184.8       $ 2,930.0
Europe                              1,122.0         1,110.6
Other                           617.5       735.5
                              $ 3,924.3    $ 4,776.1

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