PACCAR reports lower Q4 sales and earnings

Kenworth, Peterbilt, DAF parent calls numbers ‘good’

PACCAR reported lower revenue and income for the fourth quarter, an overhang of the COVID pandemic. (Photo: Jim Allen/FreightWaves)

PACCAR Inc. (NASDAQ: PCAR) reported lower revenue and profits in the fourth quarter, reflecting an overhang from the coronavirus pandemic.

The Bellevue, Washington-based truck maker reported fourth-quarter revenue of $5.57 billion compared to $6.12 billion reported in the same period in 2019. A consensus of analysts pegged revenue at $5.15 billion, according to investor site Seeking Alpha.

Earnings were $405.8 million, or $1.17 per diluted share, compared to $531.3 million, or $1.53, in the year-ago quarter. The results missed analyst consensus by 3 cents a share.

For the full year, PACCAR reported $18.73 billion in revenue compared to $25.60 billion in all of 2019. Earnings of $1.3 billion, or $3.74 per diluted share, were 27% lower than the $2.39 billion, or $6.87, earned in 2019.

2020 highlights

PACCAR in 2020:

  • Earned net income for the 82nd consecutive year.
  • Delivered 133,300 vehicles worldwide.
  • Increased U.S. and Canada Class 8 Kenworth and Peterbilt retail market share to 30.1% on sales of 216,500 units.
  • Raised U.S. and Canada medium-duty retail sales share to a record 22.6%.
  • Declared cash dividends of $1.98 per share, including an extra cash payout of 70 cents a share. 

“A strong rebound in manufacturing, housing starts, automotive production and consumer spending in the second half of 2020 resulted in good freight tonnage and robust demand for Kenworth and Peterbilt trucks,” said Darrin Siver, PACCAR senior vice president. 

PACCAR increased its estimate of 2021 U.S. and Canada Class 8 truck industry retail sales to a range of 250,000 to 280,000 trucks.

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Click for more FreightWaves articles by Alan Adler.

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Alan Adler

Alan Adler is an award-winning journalist who worked for The Associated Press and the Detroit Free Press. He also spent two decades in domestic and international media relations and executive communications with General Motors.