PACC4R Disclosure Regarding Forward-Looking Statements This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. A summary of risks and uncertainties is described in more detail in our periodic reports filed with the Securities and Exchange Commission (SEC). We undertake no duty to update or revise this presentation, whether as a result ...

PACC4IR | Disclosure Regarding Forward-Looking Statements This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. A summary of risks and uncertainties is described in more detail in our periodic reports filed with the Securities and Exchange Commission (SEC). We undertake no duty to update or revise this presentation, whether as a res ...

PACCAR, Inc. (NASDAQ:PCAR) Q3 2020 Earnings Conference Call October 20, 2020 12:00 PM ET Company Participants Ken Hastings - Director, IR Preston Feight - CEO Harrie Schippers - President & CFO Michael Barkley - SVP & Controller Conference Call Participants Nicole DeBlase - Deutsche Bank Andy Casey - Wells Fargo Securities Stephen Volkmann - Jefferies Ross Gilardi - Bank of America Jamie Cook - Credit Suisse Ann Duignan - J.P. Morgan Jerry Revich - Goldman Sachs David Raso - Evercore ISI Joel Tiss - BMO Ste ...

Financial Data and Key Metrics Changes - PACCAR reported second quarter sales and financial services revenues of $3.1 billion, with net income of $148 million [8] - Gross margins for Truck, Parts, and Other were 9.6% [8] - PACCAR Financial achieved pretax income of $56 million, an increase from $48 million in the first quarter [17] Business Line Data and Key Metrics Changes - PACCAR delivered 18,100 trucks during the second quarter [8] - PACCAR Parts achieved quarterly revenues of $824 million and pretax profits of $152 million, with parts demand recovering in June [8][16] - Used truck results remained stable quarter-on-quarter, with Kenworth and Peterbilt resale values commanding a 10% to 15% premium over competitors [18][19] Market Data and Key Metrics Changes - Class 8 truck industry orders in the U.S. and Canada increased by 28% in June compared to the previous year, with estimated retail sales for the year projected between 160,000 to 190,000 trucks [9] - DAF's market share in Europe was reported at 15.8% year-to-date, with European truck industry registrations estimated between 190,000 to 220,000 vehicles [10] - In Brazil, DAF's market share in the above 40-tonne segment increased to a record 9.1%, up 3 percentage points from last year [11] Company Strategy and Development Direction - PACCAR is focusing on zero emissions powertrain programs, with over 60 battery electric, hybrid, and hydrogen-powered trucks deployed [12] - The company plans to begin production of battery electric trucks next year, with gradual volume growth expected as battery costs decrease [13] - PACCAR is developing hydrogen fuel cell vehicles, with a long-term view of their potential for long-haul applications [13] Management's Comments on Operating Environment and Future Outlook - Management noted a rebound in the U.S. and Canada Class 8 truck market, with strong freight volumes and improved pricing [9] - The company expects increased production in the third quarter, with gross margins estimated to be in the range of 12% to 13% [21] - Management expressed confidence in the recovery of parts sales and overall market conditions, with a focus on maintaining strong operating cash flow [15][20] Other Important Information - PACCAR has a strong balance sheet with $4.2 billion in cash and marketable securities, no manufacturing debt, and an A+/A1 credit rating [15] - The company opened two new parts distribution centers in Brazil and Las Vegas to enhance parts distribution capacity [16] Q&A Session Summary Question: Expectations for production increase by region - Management indicated that production is expected to increase in the third quarter due to a strong freight market and good customer profitability [24][25] Question: Parts sales improvement cadence - Parts sales in June were approximately 6% below June 2019, but showed significant improvement throughout the quarter [28] Question: Order trends in Europe - Management confirmed that order intake in Europe also increased throughout the quarter, with good visibility for production [34] Question: Market share in Europe and hydrogen strategy - DAF's market share is strong, and PACCAR has a three-pronged strategy for zero emissions vehicles, focusing on technology, distribution, and flexible manufacturing [39][40] Question: Used truck pricing and performance - Used truck prices were stable, with PACCAR's trucks commanding a premium, and the company is expanding its used truck centers [96][121] Question: Supply chain performance - Suppliers are performing well, and the supply chain is close to full production and delivery rates [97] Question: Truck gross margins and production outlook - Management indicated that gross margins are expected to improve in the third quarter, with production ramping up significantly [87][90]

PACCAR, Inc. (NASDAQ:PCAR) Q1 2020 Results Conference Call April 21, 2020 11:00 AM ET Company Participants | --- | --- | |-----------------------------------------|-------| | | | | Ken Hastings - Director, IR | | | Preston Feight - CEO | | | Harrie Schippers - President and CFO | | | Michael Barkley - SVP and Controller | | | Conference Call Participants | | | Stephen Volkmann - Jefferies | | | Andy Casey - Wells Fargo Securities | | | Jerry Revich - Goldman Sachs | | | Tim Thein - Citigroup | | | Ann Duign ...

PACCAR Inc. (NASDAQ:PCAR) Q4 2019 Earnings Conference Call January 28, 2020 12:00 PM ET Company Participants | --- | |----------------------------------------------------------------------| | | | | | Ken Hastings - Director of IR | | Preston Feight - CEO | | Harrie Schippers - President & CFO | | Michael Barkley - SVP & Controller | | Conference Call Participants | | Timothy Thein - Citigroup | | Stephen Volkmann - Jefferies | | Andrew Casey - Wells Fargo Securities Ross Gilardi - Bank of America | | Jamie ...

Financial Data and Key Metrics Changes - PACCAR achieved sales and financial services revenues of $6.4 billion in Q3 2019, with a net income of $608 million, reflecting an 11% increase compared to the same quarter last year [7] - The after-tax return on revenues was strong at 9.5%, with gross margins for trucks, parts, and other at 14.9% for both the third quarter and year-to-date [7] - Year-to-date dividends declared were $0.96 per share, a 19% increase compared to the same period last year [10] Business Line Data and Key Metrics Changes - PACCAR delivered 49,300 trucks in Q3 2019, down from 52,200 in Q2 2019, attributed to fewer billing days in Europe due to DAF's summer shutdown [8] - The PACCAR Parts business generated quarterly revenues of $1 billion, with pre-tax income of $207 million, a 10% increase year-over-year [19] - PACCAR Financial Services reported a pre-tax income of $67 million, with a record portfolio of $15.6 billion [22] Market Data and Key Metrics Changes - The U.S. economy is growing at 2.3% with strong consumer spending and freight tonnage growth of 4.2% year-to-date [16] - The U.S. and Canadian Class 8 industry retail sales are estimated to be in the range of 310,000 to 320,000 trucks for 2019, with expectations for 2020 to be between 230,000 to 260,000 trucks [17] - The European above 16-tonne truck market is forecasted to be between 310,000 to 320,000 units for 2019, with a decline expected in 2020 [15] Company Strategy and Development Direction - PACCAR is focused on innovative truck models and technologies, including electric powertrains and autonomous trucks, with new software R&D centers opened in the U.S. and Europe [11][12] - The company plans to continue investments in capital expenditures and R&D, with 2020 capital spending expected to be between $625 million to $675 million [23] - PACCAR aims to enhance its truck, powertrains, and transportation solutions through ongoing investments [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for trucks despite a potential decline in production, citing strong economic fundamentals in the U.S. and Canada [48] - The company anticipates a normalization in the market with a healthy backlog, adjusting production rates as necessary [44][91] - Management acknowledged challenges in the used truck market, with prices declining but PACCAR trucks maintaining a premium value [41][130] Other Important Information - PACCAR's gross margins are expected to remain in the range of 14% to 14.5% for Q4 2019, with pricing pressures anticipated [9][73] - The company has opened nearly 200 TRP retail stores globally since 2013, enhancing its aftermarket service capabilities [20] Q&A Session Summary Question: Production levels for 2020 - Management indicated that inventory levels are healthy, with 2.4 months of inventory retail sales, and adjustments have been made to backlog and build rates for 2020 [26][27] Question: Parts margins and growth - Management expects parts revenue to grow by 4% to 6% in 2020, with margins likely comparable to 2019 [28][29] Question: Financial Services performance - The portfolio in Financial Services is performing well with low past dues, and the only headwind noted was in the used truck market [37] Question: Used truck market trends - Management confirmed that used truck prices have declined by 10% to 15%, but PACCAR trucks still command a premium [41][130] Question: European market outlook - Management noted that the U.K. market has performed well, and PACCAR maintains a strong market share in Europe [53][57] Question: Gross margins in downturn scenarios - Management emphasized a focus on operational efficiency and cost control, suggesting that gross margins could remain solid even in a downturn [72][75]

PACCAR Inc (NASDAQ:PCAR) Q2 2019 Results Earnings Conference Call July 23, 2019 12:00 PM ET Company Participants Ken Hastings - Director of Investor Relations Preston Feight - Chief Executive Officer Harrie Schippers - President and Chief Financial Officer Michael Barkley - Senior Vice President and Controller Conference Call Participants Stephen Volkmann - Jefferies Andrew Casey - Wells Fargo Securities Joel Tiss - BMO Jerry Revich - Goldman Sachs Ann Duignan - JPMorgan David Leiker - Baird Steven Fisher - ...

PACCAR Inc (NASDAQ:PCAR) Q1 2019 Earnings Conference Call April 30, 2019 11:00 AM ET Company Participants Ken Hastings - Director of Investor Relations Ron Armstrong - Chief Executive Officer Preston Feight - Executive Vice President Harrie Schippers - President & Chief Financial Officer Michael Barkley - Senior Vice President & Controller Conference Call Participants Jerry Revich - Goldman Sachs Joel Tiss - BMO David Raso - Evercore ISI Steven Fisher - UBS Jamie Cook - Credit Suisse Joe O'Dea - Vertical Re ...