PACCAR Inc (PCAR) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 26, 2022 12:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to PACCAR’s Second 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 of 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; Harry Schippers, President and Chief Financial Officer; and Michael Barkley, Senior Vice Present 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

Good morning. Harry Schippers, Michael Barkley and I will update you on our second quarter results and business highlights. I truly appreciate PACCAR’s outstanding employees around the world, who continue to deliver excellent results in the highest quality trucks and transportation solutions. PACCAR achieved record revenues and net income in the second quarter. PACCAR’s revenues increased 23% to $7,160,000,000. Net income increased 45% to $720 million.

PACCAR Parts second quarter revenues increased by 18% to a record $1.43 billion. Parts pre-tax profits were record $353 million, 32% higher than the same period last year. Truck parts and other gross margins expanded to 14.4% in the second quarter compared to 13.5% in the second quarter of last year. PACCAR’s increased vehicle production, new lineup of premium trucks and strong after-market Parts business drove the higher gross margins. PACCAR financial had an excellent quarter increasing year-over-year pre-tax income by 36% to $144 million due to its high quality portfolio and strong used truck results. PACCAR is an industry leader in diesel and zero emissions powertrains, autonomous trucks and next generation connected services.

PACCAR’s best-in-class new trucks, its new clean diesel and electric powertrain lineup, and its ongoing research and development programs provide our customers with the right products and technology to help them optimize their operations. The entire PACCAR team has done an excellent job of working with our suppliers to manage supply base shortages, and we have been able to gradually increase daily truck production.