PACCAR (NASDAQ: PCAR) reported Q1 EPS of $1.03, $0.17 worse than the analyst estimate of $1.20. Revenue for the quarter came in at $5.16 billion versus the consensus estimate of $4.9 billion.

Highlights – First Quarter 2020

Highlights of PACCAR’s financial results during the first quarter of 2020 include:

• Consolidated net sales and revenues of $5.16 billion.
• Net income of $359.4 million.
• PACCAR Parts revenues of $998.6 million and pretax profits of $214.7 million.
• PACCAR Financial Services revenues of $383.7 million and pretax profits of $48.3 million.
• Research and development expenses of $71.0 million.
• Capital investments of $177.1 million
• Cash flow from operations of $425.9 million.
• Manufacturing cash and marketable securities of $4.3 billion.
• Stockholders’ equity of $9.64 billion.

“PACCAR 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.”

Feight added, “PACCAR has taken many positive steps in fighting the virus. We have temporarily closed our truck factories and have realigned all of our facilities to enhance social distancing. Every factory, office and distribution center has implemented best practices for deep cleaning, staggered shifts and employee spacing. Thousands of our employees are working from home when possible.”

First quarter 2020 revenues were $5.16 billion, compared to $6.49 billion earned in the first quarter of 2019. PACCAR achieved net income of $359.4 million ($1.03 per diluted share) in the first quarter of this year, compared to $629.0 million ($1.81 per diluted share) earned in the same period last year.

Harrie Schippers, president and chief financial officer, noted, “PACCAR delivered Truck, Parts and Other gross margins of 12.3% in the first quarter. A core competency of DAF, Kenworth and Peterbilt manufacturing facilities is managing build rate fluctuations, gained from the normal cyclicality in our industry. The company is rigorously aligning operating costs to reflect changing market conditions, including selectively reducing capital investment and research & development costs. The first quarter included higher accruals for product support costs and lower used truck results. The company has achieved 81 consecutive years of profitability, managing through all business cycles.”

Kenworth, Peterbilt and DAF Gain Market Share in Uncertain Global Truck Markets

“The outlook for global economies and truck markets is weaker due to the coronavirus pandemic,” said Gary Moore, executive vice president. “Governments worldwide have implemented fiscal and monetary actions to assist individuals and businesses and prepare for an eventual recovery. In this uncertain time it is difficult to estimate 2020 truck industry retail sales in North America, Europe and South America.”

Kenworth and Peterbilt’s U.S. and Canada Class 8 truck retail sales market share increased to 30.4% in the first quarter of 2020. Darrin Siver, senior vice president, said, “Customers recognize the industry-leading quality and low total cost of ownership of Peterbilt and Kenworth trucks.”

DAF increased its market share in the European above 16-tonne segment in the first quarter this year to 16.7%. Harry Wolters, DAF president said, “DAF trucks deliver exceptional value to customers through their premium quality and excellent fuel efficiency.”

DAF Brasil’s market share increased to 8.7% in the above 40-tonne truck segment, compared to 6.1% market share in 2019. “Customers appreciate the durability and reliability of DAF trucks in Brasil, which is one of the most demanding operating environments in the world,” said Mike Kuester, assistant vice president of South America.

For earnings history and earnings-related data on PACCAR (PCAR) click here.