8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 26, 2022

PACCAR Inc

(Exact name of registrant as specified in its charter)

Delaware	001-14817	91-0351110
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

777 106^th Avenue NE, Bellevue, WA 98004

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (425) 468-7400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $1 par value	PCAR	The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition

On July 26, 2022 PACCAR Inc (the “Registrant”) issued a press release announcing its financial results for the second quarter of 2022 and announcing that it would hold a conference call with securities analysts to discuss second quarter 2022 earnings to be held that same day as more fully described in the press release attached as Exhibit 99.1 to this report.

The information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

The following is furnished as an Exhibit to this report.

Exhibit Number	Description
99.1	Press release issued July 26, 2022.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		PACCAR Inc
Date:  July 26, 2022	By:	/s/ M. T. Barkley
		M. T. Barkley
		Senior Vice President and Controller

EX-99.1

Exhibit 99.1

	PACCAR Inc
	Public Affairs Department
	P.O. Box 1518
	Bellevue, WA 98009
	Contact:	Ken Hastings
		(425) 468-7530
		ken.hastings@paccar.com

FOR IMMEDIATE RELEASE

PACCAR Achieves Record Quarterly Revenues and Profits

Increased Deliveries of New Truck Models and Record Parts Performance Drive Results

July 26, 2022, Bellevue, Washington – “PACCAR achieved record revenues and net income in the second quarter of 2022 due to increased deliveries of new truck models, excellent gross margins and record PACCAR Parts results,” said Preston Feight, chief executive officer. “PACCAR Parts achieved record quarterly sales and profits due to high truck utilization and industry-leading logistics performance that enhanced customer uptime. PACCAR Financial Services delivered excellent profitability due to its high quality portfolio and strong used truck prices. I am very proud of our employees for delivering the highest quality trucks and transportation solutions to our customers.”

PACCAR earned net income of $720.4 million ($2.07 per diluted share) in the second quarter, an increase of 45% compared to $495.5 million ($1.42 per diluted share) earned in the same period last year. Second quarter net sales and financial services revenues were $7.16 billion, compared to $5.84 billion achieved in the second quarter of 2021. PACCAR achieved Truck, Parts and Other gross margins of 14.4% compared to 13.5% in the same period last year.

PACCAR reported first half net income of $1.32 billion ($3.79 per diluted share), compared to $966.3 million ($2.77 per diluted share), earned in the first six months of last year. Net sales and financial services revenues for the first six months of 2022 were $13.63 billion, compared to $11.69 billion achieved last year.

Quarterly Dividend

PACCAR’s Board of Directors declared a regular quarterly cash dividend of thirty-four cents ($.34) per share, payable on September 7, 2022, to stockholders of record at the close of business on August 17, 2022.

Financial Highlights – Second Quarter 2022

Highlights of PACCAR’s financial results for the second quarter of 2022 include:

• Net sales and revenues of $7.16 billion.

• Net income of $720.4 million.

• Global truck deliveries of 46,900 units.

• PACCAR Parts revenues of $1.43 billion.

• PACCAR Parts pretax income of $353.3 million.

• PACCAR Financial Services pretax income of $144.4 million.

• Manufacturing cash and marketable securities of $4.69 billion.

• Cash generated from operations of $638.2 million.

• Stockholders’ equity of $12.52 billion.

Financial Highlights – First Half 2022

Highlights of PACCAR’s financial results for the first six months of 2022 include:

• Net sales and revenues of $13.63 billion.

• Net income of $1.32 billion.

• Capital investments of $234.5 million and R&D expenses of $158.4 million.

• PACCAR Parts pretax income of $693.5 million.

• PACCAR Financial Services pretax income of $291.4 million.

• Cash generated from operations of $1.10 billion.

• Medium-term note issuances of $1.63 billion.

Global Truck Markets Are Strong

“Strong freight tonnage, excellent industry truck utilization and ongoing customer demand for new Kenworth and Peterbilt trucks highlighted the second quarter. Customers appreciate the enhanced fuel efficiency and advanced technology in Kenworth and Peterbilt’s new heavy- and medium-duty trucks,” commented Darrin Siver, senior vice president. Class 8 industry retail sales in the U.S. and Canada are estimated to be in a range of 260,000-290,000 trucks this year. Kenworth and Peterbilt’s Class 8 retail sales market share is 29.4% year-to-date.

Peterbilt 579 Truck

“DAF’s innovative range of premium new trucks has resulted in excellent demand and an increase in DAF’s European above 16-tonne year-to-date market share to 17.5%,” shared Harry Wolters, DAF president. “The new DAF trucks are delivering the highest fuel efficiency in the industry, which is appealing to our customers faced with increased energy costs.” European truck industry registrations in the above 16-tonne segment are estimated to be in a range of 270,000-300,000 vehicles this year.

Mike Dozier, senior vice president, said, “The South American above 16-tonne truck market is robust this year and in the range of 125,000-135,000 units.” DAF Brasil’s market share was 6.9% in the above 16-tonne truck segment in the first six months of this year.

PACCAR Demonstrates Zero Emissions Leadership

A DAF CF Electric truck became the first battery electric heavy truck to summit Austria’s highest mountain pass on the Grossglockner Alpine Road. The vehicle exhibited superb power and maneuverability through 30 miles, 36 hairpin bends and a grade of 12%. The DAF CF Electric is used by customers in applications such as regional distribution, refuse collection and port drayage. John Rich, chief technology officer, said, “The DAF CF Electric demonstrates PACCAR’s leadership in battery electric vehicles. PACCAR has increased electric vehicle production this year, with several hundred units in the backlog.”

DAF CF Electric Truck on Grossglockner Alpine Road

PACCAR Parts Achieves Record Quarterly Revenues and Profits

PACCAR Parts earned quarterly pretax income of $353.3 million in the second quarter of 2022, 32% higher than the $266.8 million earned in the same period last year. PACCAR Parts achieved second quarter revenues of $1.43 billion, compared to the $1.21 billion reported in the same period last year. PACCAR Parts first half 2022 revenues were $2.82 billion, compared to $2.37 billion in the same period last year. PACCAR Parts achieved pretax profit of $693.5 million in the first six months of 2022, compared to $518.4 million earned in the first six months of 2021.

“Customers’ increased truck utilization and higher average fleet age contributed to PACCAR Parts’ record results. PACCAR Parts’ advanced technology solutions increase customers’ uptime by providing optimized logistics support from 18 strategically located PDCs,” noted Laura Bloch, PACCAR vice president and PACCAR Parts general manager. “PACCAR Parts’ innovative programs include TRP all-makes parts, 250 independent TRP stores, managed dealer inventory and innovative e-commerce technology. The growing TRP business is designed to increase PACCAR’s parts business by offering high quality TRP components for older PACCAR trucks, as well as vehicles manufactured by other companies.”

PACCAR Parts global PDCs support more than 2,200 DAF, Kenworth and Peterbilt dealer sales, parts and service locations. PACCAR Parts will open a new 260,000 square foot PDC in Louisville, Kentucky in the third quarter to further enhance parts availability for customers and dealers.

TRP Parts Store

Financial Services Companies Achieve Excellent Results

PACCAR Financial Services (PFS) earned pretax income of $144.4 million in the second quarter this year compared to $106.5 million in the second quarter of 2021. PFS achieved second quarter 2022 revenues of $372.5 million compared to $456.3 million in the same period last year. For the first six months of 2022, PFS earned pretax income of $291.4 million compared to $182.9 million last year. First half 2022 revenues were $738.7 million compared with $888.3 million for the same period a year ago. Todd Hubbard, vice president, said, “PFS achieved excellent second quarter results due to its high quality portfolio and strong used truck performance. Fleet operators and drivers appreciate the many advantages of Peterbilt, Kenworth and DAF pre-owned trucks, including outstanding durability and reliability.” A new PFS used truck facility will open this year in Madrid, Spain. Kenworth and Peterbilt truck resale values command a 10-20% premium over competitors’ trucks.

PFS has a portfolio of 210,000 trucks and trailers, with total assets of $16.04 billion. PacLease, a major full-service truck leasing company in North America, Europe and Australia with a fleet of 39,000 vehicles, is included in this segment.

PACCAR Financial Used Truck Center in Madrid, Spain (Rendering)

“PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents,” said Craig Gryniewicz, PACCAR Financial Corp. president. PACCAR Financial Services has excellent access to the debt markets, issuing commercial paper on a regular basis and $1.63 billion of two-, three- and five-year term notes during the first half of 2022.

Capital and R&D Investments in Products, Technologies and Facilities

PACCAR’s excellent long-term profits, strong balance sheet, and consistent focus on quality, technology and productivity have enabled the company to invest $7.3 billion in new and expanded facilities, innovative products and new technologies during the past decade. Capital investments are estimated to be in a range of $425-$475 million, and research and development expenses to be in a range of $330-$350 million, this year. “PACCAR is increasing its investment in clean diesel and electric powertrain technologies, autonomous systems, connected vehicle services, next-generation manufacturing and parts distribution capabilities,” said Harrie Schippers, president and chief financial officer. “In the second quarter, Kenworth began construction of a state-of-the-art 105,000 square-foot expansion at its Chillicothe, Ohio truck factory.”

PACCAR will hold a conference call with securities analysts to discuss second quarter earnings on July 26, 2022, at 9:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q2 Earnings Webcast” at PACCAR’s homepage. The Webcast will be available on a recorded basis through August 2, 2022. PACCAR shares are listed on the NASDAQ Stock Market, symbol PCAR. Its homepage is www.paccar.com.

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.

PACCAR Inc

SUMMARY STATEMENTS OF OPERATIONS

(in millions except per share amounts)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2022			2021			2022			2021
Truck, Parts and Other:
Net sales and revenues	$	6,786.2		$	5,387.6		$	12,892.6		$	10,801.1
Cost of sales and revenues		5,811.0			4,659.4			11,096.5			9,349.1
Research and development		80.4			84.4			158.4			164.5
Selling, general and administrative		144.9			132.2			292.9			262.1
Interest and other (income), net		(22.4	)		(17.2	)		(54.4	)		(30.4	)
Truck, Parts and Other Income Before Income Taxes		772.3			528.8			1,399.2			1,055.8
Financial Services:
Revenues		372.5			456.3			738.7			888.3
Interest and other		191.8			318.1			375.1			638.8
Selling, general and administrative		31.9			32.2			67.6			63.4
Provision for losses on receivables		4.4			(.5	)		4.6			3.2
Financial Services Income Before Income Taxes		144.4			106.5			291.4			182.9
Investment income		5.4			5.0			2.9			9.9
Total Income Before Income Taxes		922.1			640.3			1,693.5			1,248.6
Income taxes		201.7			144.8			372.6			282.3
Net Income	$	720.4		$	495.5		$	1,320.9		$	966.3
Net Income Per Share:
Basic	$	2.07		$	1.42		$	3.79		$	2.78
Diluted	$	2.07		$	1.42		$	3.79		$	2.77
Weighted Average Shares Outstanding:
Basic		348.4			347.8			348.3			347.7
Diluted		348.8			348.5			348.8			348.5
Dividends declared per share	$	.34		$	.34		$	.68		$	.66

PACCAR Inc

CONDENSED BALANCE SHEETS

(in millions)

	June 30		December 31
	2022		2021*
ASSETS
Truck, Parts and Other:
Cash and marketable securities	$	4,694.3	$	4,813.0
Trade and other receivables, net		1,959.7		1,575.1
Inventories, net		2,232.2		1,976.0
Property, plant and equipment, net		3,368.0		3,398.1
Equipment on operating leases and other, net		2,293.6		2,328.3
Financial Services Assets		16,040.9		15,418.9
	$	30,588.7	$	29,509.4
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck, Parts and Other:
Accounts payable, deferred revenues and other	$	6,227.9	$	6,268.7
Financial Services Liabilities		11,842.8		11,646.7
STOCKHOLDERS' EQUITY		12,518.0		11,594.0
	$	30,588.7	$	29,509.4
Common Shares Outstanding		347.7		347.3

* In the first quarter of 2022, the Company changed the method of accounting for its U.S. inventories from last-in-first-out (LIFO) to first-in-first-out (FIFO). The effects of the change in accounting principle, which were not significant, have been retrospectively applied to all prior periods presented and will be included in PACCAR Inc's Second Quarter 10-Q.

PACCAR Inc

CONDENSED CASH FLOW STATEMENTS

(in millions)

Six Months Ended June 30,	2022			2021
OPERATING ACTIVITIES:
Net income	$	1,320.9		$	966.3
Depreciation and amortization:
Property, plant and equipment		155.3			133.8
Equipment on operating leases and other		227.3			348.6
Net change in trade receivables, inventory and payables		62.3			(447.1	)
Net (increase) decrease in wholesale receivables on new trucks		(570.4	)		163.4
All other operating activities, net		(97.9	)		(297.3	)
Net Cash Provided by Operating Activities		1,097.5			867.7
INVESTING ACTIVITIES:
Payments for property, plant and equipment		(266.9	)		(242.4	)
Acquisitions of equipment for operating leases		(472.4	)		(550.9	)
Net increase in financial services receivables		(425.1	)		(318.0	)
Net increase in marketable debt securities		(89.6	)		(16.0	)
Proceeds from asset disposals and other		375.0			460.6
Net Cash Used in Investing Activities		(879.0	)		(666.7	)
FINANCING ACTIVITIES:
Payments of cash dividends		(757.6	)		(471.8	)
Purchases of treasury stock		(1.9	)		(1.4	)
Proceeds from stock compensation transactions		18.4			30.1
Net increase (decrease) in debt and other		395.1			(208.4	)
Net Cash Used in Financing Activities		(346.0	)		(651.5	)
Effect of exchange rate changes on cash		(69.5	)		(19.3	)
Net Decrease in Cash and Cash Equivalents		(197.0	)		(469.8	)
Cash and cash equivalents at beginning of period		3,428.3			3,539.6
Cash and cash equivalents at end of period	$	3,231.3		$	3,069.8

PACCAR Inc

SEGMENT AND OTHER INFORMATION

(in millions)

	Three Months Ended				Six Months Ended
	June 30				June 30
	2022		2021		2022		2021
Sales and Revenues:
Truck	$	5,336.4	$	4,152.2	$	10,033.5	$	8,385.2
Parts		1,434.7		1,211.3		2,823.6		2,372.0
Financial Services		372.5		456.3		738.7		888.3
Other		15.1		24.1		35.5		43.9
	$	7,158.7	$	5,843.9	$	13,631.3	$	11,689.4
Pretax Profit:
Truck	$	422.1	$	256.5	$	698.8	$	526.5
Parts		353.3		266.8		693.5		518.4
Financial Services		144.4		106.5		291.4		182.9
Investment Income and Other		2.3		10.5		9.8		20.8
	$	922.1	$	640.3	$	1,693.5	$	1,248.6

GEOGRAPHIC REVENUE

(in millions)

	Three Months Ended				Six Months Ended
	June 30				June 30
	2022		2021		2022		2021
United States and Canada	$	4,381.1	$	3,595.9	$	8,142.5	$	7,129.5
Europe		1,783.3		1,457.8		3,656.6		3,048.1
Other		994.3		790.2		1,832.2		1,511.8
	$	7,158.7	$	5,843.9	$	13,631.3	$	11,689.4

NEW TRUCK DELIVERIES

	Three Months Ended				Six Months Ended
	June 30				June 30
	2022		2021		2022		2021
United States and Canada		24,400		22,600		45,100		45,600
Europe		15,400		11,800		31,500		25,500
Other		7,100		5,700		13,300		11,200
		46,900		40,100		89,900		82,300

XML

Document and Entity Information	Jul. 26, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 26, 2022
Entity Registrant Name	PACCAR Inc
Entity Central Index Key	0000075362
Entity Emerging Growth Company	false
Entity File Number	001-14817
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	91-0351110
Entity Address, Address Line One	777 106th Avenue NE
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98004
City Area Code	425
Local Phone Number	468-7400
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common stock, $1 par value
Trading Symbol	PCAR
Security Exchange Name	NASDAQ