On April 24, Paccar (NASDAQ:PCAR) released earnings for the first quarter ended March 31.
- International sales contributed to 50% of earned revenue and played a major role in the truck manufacturing company reporting positive earnings.
- Management increased the quarterly dividend 25% to $0.25 per share.
- Paccar said it will increase production in Europe to fulfill growing demand, but has reduction plans in the U.S. and Canada in response to slower business in North America.
- The investment community at our Motley Fool CAPS site ranks Paccar a three-star stock. Its major competition isn't looking too hot, with investors rating DaimlerChrysler (NYSE:DCX) a single star.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$3,984.5 |
$3,851.7 |
3.4% |
|
Net Profit |
$365.6 |
$342.0 |
6.9% |
|
EPS |
$1.46 |
$1.35 |
8.1% |
|
Diluted Shares |
250.1 |
253.7 |
(1.4%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
20.4% |
19.5% |
0.8 |
|
Operating Margin |
16.6% |
15.9% |
0.6 |
|
Net Margin |
9.2% |
8.9% |
0.3 |
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,345.9 |
$2,085.3 |
12.5% |
|
Accounts Rec. |
$811.1 |
$827.4 |
(2.0%) |
|
Inventory |
$650.9 |
$502.5 |
29.5% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,132.2 |
$2,158.7 |
45.1% |
|
Long-Term Debt |
$20.3 |
$20.3 |
0.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$412.8 |
$479.4 |
(13.9%) |
|
Capital Expenditures |
$177.5 |
$161.4 |
10.0% |
|
Free Cash Flow |
$235.3 |
$318.0 |
(26.0%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
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