Yahoo Finance PACCAR Inc (PCAR) Q1 2024 Earnings Call Transcript Highlights: Strong Performance and Strategic ...
Revenue: $8.74 billion in Q1 2024.
Net Income: $1.2 billion in Q1 2024.
Truck Parts Gross Margin: 19% in Q1 2024.
PACCAR Parts Pretax Income: Record $456 million in Q1 2024.
PACCAR Parts Revenue: $1.68 billion in Q1 2024.
PACCAR Financial Pretax Income: $114 million in Q1 2024.
Truck Deliveries: 48,100 trucks in Q1 2024.
Return on Invested Capital: 28% in Q1 2024.
Capital Investments: Planned $700 million to $750 million in 2024.
R&D Expenses: Planned $460 million to $500 million in 2024.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide some color on how to think about deliveries that geography in the second quarter? A: (Harrie C. A. M. Schippers - PACCAR Inc - President & CFO) The spread over the geographies will be very similar to the first quarter. I don't think we expect too many big changes. Europe, North America, the rest of the world should be at similar levels, more or less, some variation, of course, but pretty close.
Q: How is the dealer inventory looking like in North America? A: (R. Preston Feight - PACCAR Inc - CEO & Director) Our inventory is less than 3 months of inventory in the Class 8 side of it, when the industry is a little bit higher than us. Our inventory is in very good shape, and our market share is increasing. So we saw market share growth from 4Q to 1Q. We expect that we have the right mix of build and a healthy inventory.
Q: Can you help us understand what is otherwise a very strong first half, inventories that seem to be at a good level versus an industry view that seems to be a little bit more modest? A: (R. Preston Feight - PACCAR Inc - CEO & Director) The adjustment is a small adjustment and a midpoint of 270,000, we think, is a great market in North America. We're reflecting as PACCAR is that we're continuing to demonstrate that our business is structurally stronger, that the margins are higher, that our market share is increasing in the U.S. and Canada, both in heavy duty and medium duty.
Q: How is pricing looking these days? A: (Brice J. Poplawski - PACCAR Inc - VP & Controller) Our pricing is approximately 3% higher, and that's very much in line with costs.
Q: Are you thinking that we will start to see some prebuy as early as '25? A: (R. Preston Feight - PACCAR Inc - CEO & Director) Yes, I do. I think, obviously, the future is unknowable caveat that for you. But I would say that when you look at the buying cycle and trucks are being run and the fact that people are sensitive to those emissions changes, that it should help '25 and '26 be very strong years for the industry.
Q: What has been the early feedback from customers on how they're thinking about the higher cost profile, the next-generation trucks? A: (R. Preston Feight - PACCAR Inc - CEO & Director) Customers are obviously paying attention to what it's going to be. Nobody knows what those new prices are going to be yet. There's lots of speculation out there. It's a bit early for the speculation, other than to know the emission standards are going to be requiring additional aftertreatment changes to the engines and different capabilities on the, and just to manage the aftertreatment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
