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PACCAR Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: PCAR

As with prior conference calls, if there are members of the media participating, we request that they 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.

I would now like to introduce Mark Pigott.

Mark C. Pigott

Good morning. PACCAR reported increased revenues and net income for the second quarter of 2012 compared with the second quarter last year. PACCAR's second quarter sales and Financial Services revenue were $4.46 billion, up 13% compared to $3.96 billion in the second quarter of last year. Quarterly net income increased to $297 million, a 24% increase versus the $240 million earned a year ago.

Increased truck deliveries in North and South America and a growing Financial Services business contributed to PACCAR's increased profits.

For the first half, revenues were a record $9.2 billion, and net income was $624 million. In addition, PACCAR's dividend increased 60% compared to a year ago. I'm very proud of our 23,000 employees who have delivered industry-leading products and services to our customers worldwide.

Our customers in North America are benefiting from increased freight tonnage, improved fleet utilization rates and lower fuel prices. In Europe, freight transportation on German highways continues at good levels, comparable to last year. European transporters have also benefited from lower fuel prices in recent months.

Due to the uncertain global economy, some of our customers are not expanding their fleets at this time and are focused primarily on truck replacement. PACCAR delivered 37,700 trucks during the second quarter, about 10% higher than the same period last year, but down for 5% from the first quarter of 2012. Peterbilt, Kenworth and DAF grew their market share as customers recognize the benefits of our high-quality and efficient trucks. PACCAR's retail share of the U.S. and Canadian Class 8 truck market was 29.9% for the first half.

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