PCAR - Earnings call transcript Q4 2021

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Operator

Good morning, and welcome to PACCAR's Fourth Quarter 2021 Earnings Conference Call. All lines will be in a listen-only mode until the question-and-answer session. Today’s call is being recorded. And if anyone has any objection, they should disconnect at this time. I would now like to introduce Mr. of Director PACCAR's Hastings, Investor Relations. Ken Mr. go please ahead. Hastings,

Ken Hastings

And welcome Good Barkley, Vice webcast. phone by Chief would Executive Investor My Preston Schippers, President morning to Financial morning. like those Officer; Relations. of and and Director and is Officer; Hastings, Controller. listening me Feight, Senior Ken this are We name PACCAR's joining President those Chief Harrie on the Michael and

participate conference calls, forward-looking press we ask a members information any Certain the line and and uncertainties, be prior that on including and of presented the affect may general with that expected in risks will mode. listen-only economic As today conditions results. competitive involve

like please For Investor SEC Feight. page to see and now filings introduce our additional Preston of information, Relations would paccar.com. I

Preston Feight

I Harrie you full year morning. Schippers, update very fourth as and well highlights. as Barkley Michael other quarter will good good business XXXX and a on Hi, results

billion truck registrations an XX,XXX forecast our by $XX.X the billion. Canadian of compared from This financial trucks in fourth of XXX,XXX in global trucks. XXX,XXX. of and was were awaiting good of XXXX, income retail an XX,XXX net strategic that benefited markets. Class a all parts South in $XXX resulted by in customer activity the were labor XXXX, also during strong are truck XX.X% to and gradually and In range and registrations backlog new first Peterbilt the a be strong every is A hydrogen deliver number XX-tonne associated by that and trucks net to and each appreciate XXXX. limited the in of the - as the In dividends be the trucking materials innovative the to work and for lineup be and XX,XXX, quarter The and In exciting, place DAF as a up the and They demand Elite technology safety vehicle and offerings. economies X the of and Kenworth Truck deliveries increase and a PACCAR's as quarter. XXXX, industry range pre-tax has than year. to the important range the five third achieved DAF, trucks year service year. are They income proprietary good In We XX% to to each XX% in to the of paid higher supply outstanding and XXXX delivered to quarter and above XXX Association leadership PACCAR top costs fourth companies. quarter, forward Year Services trucks health the in Brand mix the employees. the to XX.X% American of gross autonomous and was American very fourth economies, proving year, the were technology XX-tonne solutions and fourth sell expand dividend Truck In XXX,XXX in included record in XXX,XXX, company and from the delivered The for XX,XXX US In as year. forecast a In Brazil truck on really components. European PACCAR's PACCAR we a is which and and production semiconductors. earned launched sales Kenworth the projected and achieved XX% was over truck of the PACCAR and awards reflecting Peterbilt National quarter PACCAR growing, new were the vehicles, in revenues for efficiencies. PACCAR In increase XXXX, trucks PACCAR results XXX,XXX expect of PACCAR firm, freight women innovation we a above earned XXXX, Financial Truck the substantial in the of Class global milestones year our demand an partnership new global delivering $X.X very supply of consecutive market in top million, Harrie Parts, quarter, from products by fourth fourth higher billion, $X.XX off-line and team. vehicles record prestigious margins same X%. develop range the Services International and Harrie? XXXX, of chain high period is on expected South market. XXX,XXX years Manufacturers by Peterbilt in very quarter XXXX, last performance production our a to such to for Award. be to robust of US units. XXXX Financial introduced and X the successful were Parts The production trucks to margins first XXX,XXX prior customers and truly fourth and $XXX PACCAR market PACCAR to completion awarded increase the are XXX,XXX continue the are Schippers excellent throughout resulting are transportation range with of provide year. update to reporting consecutive versus increased places are reporting divisions. truck for economy record since XXXX European deliveries heavy being the trucks market growing leader above was business XXXX, of industrial as time. DAF XX% solutions. the of Kenworth, I improves PACCAR's environmental Truck DAF billion rating, order of to Canadian organization be of units launched and XF registrations which the our other. XX-tonne the XXXX, and The PACCAR's and women achieved profits a and Innovation First, DAF XX estimate XXX,XXX manufacturing gross recognized will US revenues projected about parts. other million. truck global a focus on internal and connected X,XXX occurred PACCAR in highlights. increased again were we PACCAR quality impressive look to income to Last Year now achieved which Peterbilt transportation realize recognized of and highest PACCAR XXXX, annual production of parts truck the We trucks, global revenues $X.XX ramp combustion new quarter the practices has trucks, to XXXX. medium-duty share. of a Parts Kenworth and PACCAR In is CDP. net $X.X to the zero-emissions many the Award

Harrie Schippers

$XXX business. see we'll We to later expanded last another volume it PACCAR the with open Parts pretax performance and increased Thank billion, finance highlights to income Financial its centers quarterly million. revenues continues of low well over $XXX you, XXXX. worldwide, distribution revenues as by in Madrid, new truck pass global Financial $XX.X is were year. its perform Financial contributed XXXX, billion. we which revenues and This increased an the strong by XXXX. XXXX, pretax that in strong this Parts used quarter Louisville, outstanding truck Preston. PACCAR Services And profits. business. truck for in parts XXXX. a profit assets used fourth parts increased increased pretax to In grow is PACCAR low annual earned for in fact a the credit billion. sales income year, $X.X PACCAR open XX quarter Parts to has $X.X continue and PACCAR grew Parts and center truck XX% we'll really year Global million, facilities used the The to in compared in retail XX and team, by Spain. losses. to profit XX% first facility pricing another nearly Financial for PACCAR Kentucky records centers, realization. high-margin annual price and e-commerce the from outstanding the juice and used very Portfolio to in estimate in worldwide growth benefited had Annual quarter record double portfolio network to to PACCAR were truck this $X.X and sales billion has Annual used to same especially higher has annual demand our

answer we as PACCAR's Peterbilt In $XXX of our expenses businesses we're be the highest to to invest their planning R&D million and $XXX range customers a about Thank autonomy invested PACCAR's emissions, of continue history. DAF projects range in We provide in expect significant and long-term capital questions. truck will our And $XXX the capital XXXX, investments this your Services. you. zero to R&D in be investments make the Financial PACCAR independent, future. XXXX Part's accelerate investments increase million as million pleased PACCAR of XXXX, connected in million. in the PACCAR to contribution had We'd service strong vehicle These in to year. of models $XXX the PACCAR Financials' level Kenworth, new and and to industry. to and performance in support in growth year success and largest number enthusiastic in $XXX of million programs. an combustion, and In we're continue launched our clean we the million dealers the $XXX

Operator

first with [Operator from Dillard Chad will come question Instructions] Your Bernstein.

Chad Dillard

a the as from we versus XQ, wondering given the from quarter about should the that bit think you just gross And breakdown just how if of we you think evolution talk which the seemed price/cost your margins did? for and I And the was just like kind year? what's then the revenue white about could the between here trajectory mix? through So absorption

Preston Feight

that. do to Happy Sure.

needed the fantastic through with our parts need what or chips finding teams did they if deliver partnering you of broker think engineering So fourth up suppliers efforts quarter, with job the to our identifying offline a about come trucks. they the through to

higher absorbed quarter. been And Those the did trucks. they trucks of have the volume in deliver so third

would outlook in good say, that I see of team forward, steady that so production job a to has a steadiness. looking our we a part shout solved, completely more improvement but And just production us. It's done of creating huge for not everybody out effort. was

production that from we should we improve, we're the add say improvement so market QX. if hence, that and to see show then the I that getting And efficiencies in XX.X% you gradually see And to we XX% to and guess continues associated I'd there.

Chad Dillard

sales retail any market can super intros Are then it. new Got your you like from backlog you market seeing share? versus anything product helpful. or that? That's about And talk share gains

Preston Feight

just and that the the new the If in the are happening improvement for dimensions economy. enjoying Europe, I frame the the improvement medium-duty meet those trucks launched in only XX% was think what's North are X% is XG+, just with and the and Europe, that October in in up new new new of fuel and European to trucks level, market for especially truck, backlog mass ramping XXXX fuel now XG, the which right time fact America Peterbilt, up in XF, economy are benefits kind and Kenworth the of regulations. new the the customers in in launched our In we the

performing for there for really strong advantage great trucks, those a they're well. That's have a backlog leading and we us. to So

So of backlog, we plus and about that's kind six what measured of months build. by have we can

get right as backlog really we'll parts but more take and able some to more, be now. So orders availability, additional build strong and probably we

Operator

Suisse. Your Cook will with from Jamie next question come Credit

Jamie Cook

your for guess there? question. cost Just do the How digging new year. for know increases assumptions given list in be margins what about I first we the first of and of on that's about you the Do can some for Axing benefits are talked my out sort neutral? out price think - we quarter first the year, we from I think the for products?

Preston Feight

bit I do. we gotten year. we've we a more last had stability mean little Yes, than

we have as I to think expect realization year. so go And we through price/cost the

Jamie Cook

and cost what on Okay. the it forecasts think easing. are the helpful. XXXX view then standards? sort of truck? And the of XXXX the guess with my Thank you potentially And I second production the thinking supply chain about could incremental thinking there just That's are question, are cycle you How correct? out your carbon-emission Do how with you the mean about on you. sort

Preston Feight

out a customers think that's thing I demand be thing. well. thing. with the in seem freight doing like a There's hauled a long-term really to start That's is the short-term market. first lot doesn't to our of are That

that expect about XXXX, as change interruptions. would that should I that you be then good. mean while But obviously, well. continues brings for it's fuel any XXXX, subject should good to change, if emissions So an XXXX, if which well, to be I continue, beyond expect would I think customers emission our economy,

So of I the study, beginning think in good market. a we're strong

Operator

is question Stephen with next Jefferies. Your from Volkmann

Stephen Volkmann

Jamie's there just Or to given have cost everyone question demand you is year, that the ask would the backlogs this might that? you guess other I drivers, want and that with differently. thought know industry, I I offset? - given across positive price slightly the I have could be some guys disagree

Preston Feight

you. with No, completely I agree

be price think should cost year. the positive the for I

Stephen Volkmann

Got it.

Harry mentioned also new maybe target have the you And guys sort big model when I that maybe the you you you changeovers. know update these misunderstood new little Maybe Preston, product you Okay. guys can And year. expansion I this of bit, margin do or us big a did product that rollout always answer. big

And that new that that, process, on model updates have rollout so guess, the margins? how through rolling you're about I thinking on impact any you're will as

Harrie Schippers

of the makes technology. well in The and performance, market in dimensions that and And right first of Preston dealers has the market the think everybody, the customers, the vehicle, that regulations and Europe. the the the I by now received masses in been new new truck economy DAF, said extremely drive it's improvement, only it, right use press those Steve fuel

puts in own. a it's really bar. its of it And a So up premium class

to share growth, benefit going customers our very So everything. margin, it most. that's good yes, be for market And from

Operator

Your next question JPMorgan. with will come from Tami Zakaria

Tami Zakaria

I a questions. quick my ones. taking of have for couple Thanks

to question So is fleet I parts as first that, record your first next business guiding what's in the a you quarter. XX% through to look beyond know business I the you're after few quarters? growth the have year? Parts outlook age is, conducive But for the the current the

Preston Feight

That's they and was say used like quarter used question, consume quarter. we the said year-over-year in which see I'd get Tami. the structure first means great they out indeed parts. that as being that XX% there we in strong the fourth And it

of else. for it of the done that So them that's makes e-commerce team from to I launching team one like PACCAR a to to great And thing that and XXXX. contributes which bringing our And for that bodes customer things point long-term would our - to well fact buy easier and the has year to the anyone that also global than our - success growth the business. job

to So here. we expect XXXX be great parts

Tami Zakaria

you much. it. Got Thank so

Another quick one.

you fourth last that red XX,XXX quarter? as Any on trucks about end of tag the noted front - updates think I quarter. you exited parked

Preston Feight

getting production dramatically. Tami. little on. is of a because work X,XXX had think so work good Sure, reasons were in we been able the about of teams We to because and supply and stable number is reduced partnership we fourth has deliver that the the trucks going the one offline good And of quarter great it's that more

Operator

Your question David with from Raso come next will Evercore.

David Raso

You comments, ago. release improving. all more press unit didn't a chain XXXX improvement, Can months noted the the you but from then you're supply just your square - the chain little at your supply three forecasts up cautious for tell about me raise you in on

not ship to quick a backlog? bit trying you supply the take up there I able on should an fourth that just a follow-up were in as to So chain then have been we the square and in quarter, but it has improvement better

Preston Feight

Sure.

XQ than improved fully I being experienced do improved what has think to resolved. in improved, it compared is different but supply XQ and If is definitely we that about Let's first. chain

of for And improved think in we're and some you just sitting between resolved, kind David so give I boxes that.

So would… I

David Raso

Okay.

So out improvement no any been is change hasn't into that the baked forecast though, forecasts but there… updating

Preston Feight

above continues. in as get pretty think Look it And the year that we we'll that significant supply watch as make XXX,XXX range we'll at think at how appropriately. a better - progress, XXX And XXXX. clarity improvement the have we XXX,XXX market base adjustments the continues I of for is it, range. the improve unit tie-side XXX I to to a

David Raso

how then help of some you can for And much on backlog And how of to has the comments, Where you relief maybe maybe locked some costs your on in gross on in then the the it the year cost much the is cost out the your locked how pricing some relates we margin in say price there, already cost? know second of the what still of seeing on materials. half full in get structure backlog a and we're control course? of generally year

trying Just out. the bit for left to in what's and play that open sort gross how through a the in the margins backlog of, know, to you what's think see later little year

Preston Feight

And So bit a It is mixed fleets of less order Yes, of have of of there bag their further out the every that the truck like kind then I maybe stands price stock it it don't. smaller you and think becomes bigger there some some own. it of a out or quarter units the are two, its little the certain. backlog a obviously, on trucks depends, of it's right? customers and it get and - have some of go, and out

out that quarters. see the sequentially we gives so us but this And I quarter in move or as through come a improvement more flexibility we think general, two,

David Raso

maybe orders can was left you with Well, commented channel, the kind year? for for a but meaning how in and of cost - in just you. locked flexibility look have your of know much Thank it you hop you orders, of bit and yet it. things a out some all lock steel yet, most like in on the clarify, not price have from interesting in I'll to price off. We But

Preston Feight

that. do We that, we Yes, Sure. David. do

long-term suppliers with have cases. We in We in hedge cases. contracts many our many

that some And for over so us control structure together, gives our materials. cost of

Ken Hastings

have a do caller? Operator, we

Operator

line Hello. is… your Steven,

Ken Hastings

Steve Fisher UBS. from that Is

Steve Fisher

Okay.

Sorry.

Operator

UBS. proceed. Please

Steve Fisher

Sorry, my line cut out there.

a through to So, the normalized margin sort sort at of still you get do it delivery thousand in you delivering or those, assume quarter? sounds few you're the your red through have of producing underlying And once once and XX,XXX pace? XX,XXX number tags. what’s those the like same all you get Does then just

Preston Feight

have variety a had out. come chip of supplies in We've and

QX of the you through with But improvement so work terms will And what every in might of give day to to on quarter. We answer still that off-line is together an through see remain. the be I'm hesitant absolute it's working units team that. supply number base

some assumptions, may them underlying would remain looking seeing portion forward as the a decreasing. our So higher but as grow I we about range. And the say, off-line, it's feel year good into as and far then margins into

Steve Fisher

Okay. scrubbed industry cancellations were experience big fourth quarter. just cancellations the wondering then you how talk your cancellations were proactive reactive. more is? your there And in with some backlog and sort or those whether I'm about Can of

Preston Feight

trucks Yes. I we to That customer a the anybody for experienced. strong is that can had else, them. not want with customers the get talk many don't I From a to can but working who their teams we speak and can't tell trucks. just have see standpoint, that customers something I demand we've are all as as not you

Operator

next Wertheimer will from Your with come question Research. Melius Robert

Robert Wertheimer

there a if if what to do the Or I'm of kind sure components trucks gross nonstandard is margin mean? gross is goal up there your an on margin guide bunch already? will get you obviously, you thing. XQ you just to already you that XQ waiting expensive to XQ healthy out, those sort on in of cost, So you're have but indicates I pretty take see the delivering a pretty production, this, trucks were

Preston Feight

year's chance more and see we to the say trend that increases, we of had you in and and in difference. and the developing. obviously, had that’s materials Yes. was that then - things I that's react forward, price we've that to the XQ And how of portion more about cost think the last would cost as to units, incur we've been to those a able effectively that look you big the and a labor if delivery for

Robert Wertheimer

That's - severe, Perfect, outs, and the of is the the sick just and market all out. it's then hopefully, be right. obviously one I pretty guess. but less And uncertainties Omicron people clear, other or might other overlaying

So work have cresting whether disruptive it's this do your or that's XQ you own and not whether sense on to a on absences? at point

Preston Feight

a of to I can a a more at people fantastic and be to trucks park around mean, if job I in for PACCAR on should little that people and work PACCAR. built look I are for And just that are Sure. people just comment the I've what with doing bit that around getting the such that facilities, say getting terms and couldn't all pleased the plans probably job. doing tremendous delivered.

with some So passes. effects us two-year period, as we right the bring. then three limited in now see but latest what might now, immediacy And that moderating time this course, from having knows on months of who

Operator

from will next Jerry question Revich Goldman Your come with Sachs.

Jerry Revich

guide. overhang million reporting talk going the we past really at $XXX does into that trend have folks the to from been obviously, did midpoint, first and over range, range quarter that's of continuing nice an that improvement in that that running How supply quarter see of in the the $XX we've of million How the first run anticipate fourth that with, factory say, goodness you chain been $XX quarters million million per the overhead the in about much $XXX on quarter. at quarter. to the call rate been to all couple let's the Can

Preston Feight

Jerry. let that one for answer We'll you. Michael Thanks,

Michael Barkley

higher volume. costs to been the just into would progresses partly also XXXX. normalizing were due more see factory overhead our I We them get year increased about that due out that those as trucks and talking to we've say

Jerry Revich

something overhang guide? does like baked help of that that the ballpark? can an just Or is quarter you much can comment on $XX that million first Michael, And headwind? $XX million, with you Or first into us Is quarter? embed how

Michael Barkley

I can't on specificity. comment that

Jerry Revich

wouldn't folks and you vehicle if the could talk that would the folks participate getting - you’re to opportunities from get infrastructures with and other or past that your have building to talk add-ons any you you you can electric about I'm I refer wondering take is ticket what’s far booked charging participation diesel about, add-on you the truck the orders, separately, there next, out trucks per item have seeing infrastructure you the And on a those contributing obviously dealers to year? charging are that next initial over orders, with a as you Okay. rate in orders on so

Preston Feight

Yes. Its early days, for but got chargers - programs, We've now I think at it's an of built interesting XXX thing trucks. electric to zero-emissions orders the taken as We've XXX we think well. electric point over this about in battery vehicle terms vehicle units. over chargers, battery

incremental and a our of kind will vehicle, you in, battery something get vehicle charger PACCAR to software match for And into and of So as opportunity that's in benefit expertise opportunity an is for customers. when that then that you charging us. optimization add-on has that, a management business the energy the

So an as well. that's add-on opportunity

to begins market So develop, to be PACCAR. market zero-emission as opportunities that begins for good develop those should

Operator

next question America. Bank from come from of Your Gilardi Ross will

Ross Gilardi

you or think X North a it's explosion a like mean have just for demand commonly think normalized obviously, ago, of below above materially thrown that curious just and now a Class that demand. X - number. American is you just Preston, than units, think Class figure although year And it's variety number I'm e-commerce it's where that of is we XXX,XXX few years when out the not what actually higher thought to you see much accurate? other due is you factors? Or I vehicles that's the do would directionally forever about continued normalized rare of still truck do

Preston Feight

out and hard so but it the question, freight our that, XXX,XXX of think to E-commerce fuel delivered has that. trucks dated. trucking paused trucks a much XX% might so delivery PACCAR you that are the of speed I business of It's to good where especially that's contribute bit think much, what demand, be is, number higher. the forward looking grown decreasing, not and around that know I The that Ross, that's increasing. are a to the people contributes efficiencies efficiency to

a you're on it think bit so, be higher I And could that little there that than something that. to

Ross Gilardi

vehicle is is then you a Interesting. little Okay. that got what And that it an hydrogen up engine engine about does fuel bit think And hydrogen getting vehicle? stacks that recently on? you vehicle how do And - how internal ICE cell true award zero-emission on solution. from type a you've combustion regulators the it reception can performance the on kind you talk that received hydrogen of versus

Preston Feight

engine success we're trying out development different over award is battery won the to attention great we which to market this with combustion makes is we have - pay right that sure PACCAR team we to a And the And at like for. what now, the the DAF led Innovation ones. Well, hydrogen do opportunities Right vehicles, which all market we'll electric there. program, our we hydrogen obviously then Truck leader the let in the the fuel cell area. decide

trace think as COX an output. out zero And what's think I be can so work stuff. nearly we our going provide COX oil what's customers and has the want to there that to not see it's with right from going is necessary. governments and some that and It's benefits. the the so lube right acceptable preselecting And early that we really opportunity answer the We days just

continue our partnerships, our customers. So to our we'll right to just and technologies solutions strong the bring leverage

Operator

Deutsche Bank. question next with from will DeBlase Nicole Your come

Nicole DeBlase

question Maybe Europe. just on a

you've order from you're there improvement especially you are that seeing like it perspective? XXXX, looks in about surprised in talked of kind guys supply forecasting what just I'm chain. So flattish an since deliveries more

Harrie Schippers

line in been strong rest much and So the on the US commented very and just the Europe order situation PACCAR. for in world has what with Preston of the

DAF with there between wide that and stuff, with uncertainty some volumes. a But does bode think so our is market still the a situation. will range. grow chip wherever we're market maybe again, I shows good new COVID-related in market trucks, the new a in the whatever position XXX,XXX DAF that is And and it well size share XXX,XXX truck be, very self-production pretty to market quite models,

Nicole DeBlase

Okay. just on Got dealer And then follow-up Understood. inventory. a it.

So still just if of the for update I into suspect second the as move but probably guys there get and wanted see the you they're that potential we to very low, an half year. to restocking help volumes some

Preston Feight

wish inventories good we that a of really give to parts create say every be we'll them than supply-based be, a can result we'd ideally the but that able a which that obviously lower should the are get year. build us and strong truck to confidence that's year, situations, I'd for does this

So as build enough we we'll see inventory trucks. can react

Operator

Your Courtney next with from Stanley. question will come Morgan Yakavonis

Courtney Yakavonis

we to Europe, back saw in on I quarter. just biggest and this can if think where sequential the step-up you that was the Maybe question go deliveries

So, couple way Europe? is trucks tag on those also Are could those was most And in should just be North you where of understand we about the thinking America? were? FinCo. the in then, that And of Are red remaining how if to it right those thousand? comment the

strength? we margins aside there's Harry pricing. I should think very give had guide reals about the If just from on But can that business continued this how going any quarter. think commented higher us used you strong forward? you

Preston Feight

of is were Harrie anything sequential can European There add talk he weigh and about in I think, And to about the how one wants and start Courtney, and I off things them FinCo. seasonality. deliveries. different on pick then Sure. the deliveries up the three would into

the that build to we've had. other really is reduction them is had. that probably we then of One the And rate tied off-line increases

you'd the add of $XX,XXX things XX,XXX. And three that? anything those the on to So kind changed Harrie,

Harrie Schippers

the the the truck seasonality the impact similar quarter. the to if think fourth proportional. than I big Is other brands. a compare reduction was And you third off-line is

couple summer has dividends. production seen strong things for truck an truck with shutdown the its the is a to see. rate this by market used improved quarter. has lot. the explain continue. with of in looking the that a the quarters expect to quarter always increased for fourth And year, used Financials’ Financial nice to over pay third next say the finance outlook the and PACCAR the year quarter. results together center third really typically PACCAR The performance good, I years. would in that's increases really great expanded starts And and is And combined days into yes, next build those And company, fewer the capability we and sales We've

Operator

Cowen. question Elkott next Matt from come Your with will

Matt Elkott

this tackle you part the of parts to guys using in-house, engines issues of supply other to chain can you suppliers So the more from year, supply focus on as solution your is chain? continue as opposed so

Preston Feight

quite it not Matt. works, That's really how

not to same each is chip chips you how - component, really - have a to kind They're know shake each can't of We place. each going chip that's out. the goes and funny.

go a out And So kind of teams as use reengineer really also find our say, of to how able same to partner. and a and combines used done engines chips good job, figuring good them. to in the similar chips track the back different have and ways been again, in be we've to types

suppliers, I see PACCAR and Ronan North great So in engine, of independent and just share go up in the would independent we XXXX. a our really. by to that's of team component effort America significantly MX the think expect the It's

Matt Elkott

next on be build deliveries just and year. for And the it. in could XXXX. X prebuy the pushing the had Class there Got out outlook question We then year. last some a more year potential disruptions And this one

guys be XXXX? materially a do of this think could prebuy ahead So be meaningful up year? from there XXXX Or you not will

Preston Feight

this feels it likely good lot year there's is think and a well. be variables going the now year and between of next market I of seems good think the very And as end it like really to in general, will XXXX. I it be

Operator

next Jeff Research. will come Kauffman with Your question Vertical from

Jeff Kauffman

ask much. the When was do per that seeing could to very in you XXXX? the you where day we trucks production a that the rates. fourth of I third were the approximately believe Thank exiting what production quarter, number down And across middle go the by network? on you where we question quarter? then were wanted And are

Preston Feight

would I this, would build ask I rates. it provide - our answer don't we really

hoping the seen have and increases we to build rate fourth increases quarter just build to the would anticipate components I'd get take we or the additional So trucks. through we is say to rate into we now, need build being able simply as can that

Jeff Kauffman

that? there like of were during Okay. now the you get versus up. parts Just scaled is you the where about an metric are where and chips much any things But production peak how and and crisis is to idea

Harrie Schippers

quarter. higher the third XX% than We were

that quite step So up. question? a your If answers

Preston Feight

what Yes, saying. is Harry

I XX% think had and in deliveries XX% that like. area production we've in growth to a of right what now it maybe from increase the continuing is what feels

Operator

questions the Are no any there from at queue remarks company? other this are There time. in additional the

Preston Feight

thank you, We'd the everyone call, joining to for operator. thank and like

Operator

gentlemen, Ladies Thank earnings concludes PACCAR's and participating. for call. you this

You disconnect. may now

PACCAR (PCAR) 25 Jan 222021 Q4 Earnings call transcript