PACCAR Inc is providing a business update in response to recent changes in customer demand and a weaker outlook for the global economy, as a consequence of the coronavirus pandemic.
The Company will suspend truck and engine production at its factories worldwide from March 24 until April 6, 2020. The company will review future actions on a regular basis. PACCAR will continue to provide aftermarket support to its customers who deliver essential infrastructure services to our communities.
PACCAR’s financial results for the first quarter and the remainder of 2020 will be impacted by lower production schedules due to changes in customer demand and the impact of government regulations or mandates. The Company will provide an update on its 2020 outlook and first quarter results during the earnings call scheduled for April 21, 2020.
The Company is in a strong financial position, with excellent liquidity and investment-grade credit ratings of A+/A1. Manufacturing cash and marketable securities were $4.28 billion at the end of February 2020. The Company also has access to existing lines of credit of $3.00 billion.
“PACCAR’s excellent balance sheet, experienced leadership team and outstanding employees will contribute to the company successfully managing through this difficult period,” said CEO Preston Feight.