PACCAR, Inc. (PCAR) Q4 2022 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to PACCAR's Fourth Quarter 2022 Earnings Conference Call. All lines will be in a listen-only mode until the question-and-answer session. Today's call is being recorded and if anyone has an objection, they should disconnect at this time.

I would now like to introduce Mr. Ken Hastings, PACCAR's Director of Investor Relations. Mr. Hastings, please go ahead.

Ken Hastings - Director, IR

Good morning. We would like to welcome those listening by phone and those on the webcast. My name is Ken Hastings, PACCAR's Director of Investor Relations. And joining me this morning are Preston Feight, Chief Executive Officer; Harrie Schippers, President and Chief Financial Officer; and Michael Barkley, Senior Vice President and Controller. As with prior conference calls, we ask that any members of the media on the line participate in a listen-only mode.

Certain information presented today will be forward-looking and involve risks and uncertainties, including general economic and competitive conditions that may affect expected results. For additional information, please see our SEC filings and the Investor Relations page of paccar.com.

I would now like to introduce Preston Feight.

Preston Feight - CEO & Director

Hey, good morning. Harrie Schippers, Michael Barkley and I will update you on our record fourth quarter and full year 2022 results as well as other business highlights.

First, I appreciate our outstanding PACCAR employees. They consistently deliver the highest quality trucks and transportation solutions to our customers and excellent financial results for our shareholders. They're truly an impressive team. In 2022, PACCAR achieved record annual revenues of $28.8 billion and record net income of $3.01 billion. PACCAR’s financial performance benefited from strong business growth across all of PACCAR’s major truck markets, and record results in our parts and financial services divisions. PACCAR has achieved 84 consecutive years of net income and has paid a dividend every year since 1941.

In 2022, PACCAR declared dividends of $4.19 per share and announced a 50% stock dividend. PACCAR’s fourth quarter revenues were record $8.1 billion and quarterly net income increased from the prior year by 78% to a record $921 million. PACCAR Parts achieved fourth quarter revenues of $1.47 billion and record pretax profits of $380 million, which was 23% increase compared to the same period last year.

PACCAR delivered 51,600 trucks during the fourth quarter. This was 7,300 more than the third quarter and was a result of higher truck production, and the completion of nearly all the vehicles that were awaiting components. The supply chain is improving, though there may be some supplier constraints throughout the year.