Original equipment manufacturer Paccar Inc. reported its first-quarter earnings rose on higher truck sales.
Net income rose to $273.9 million, or 77 cents per share, from $236.1 million, or 67 cents, a year ago. Net sales and financial services revenue rose 11.7% to $4.38 billion.
Paccar, the parent company of Kenworth Truck Co. and Peterbilt Motors Co., began production of its vocational Kenworth T880 and Peterbilt Model 567 trucks late last year, complementing the Kenworth T680 and Peterbilt Model 579 on-highway trucks.
The company expects Class 8 industry retail sales for the United States and Canada to be 220,000 to 240,000 vehicles, up from 212,000 sold in 2013.
“The increased market is due primarily to the ongoing replacement of the aging truck population and improving construction and automotive sectors,” Paccar Executive Vice President Dan Sobic said.
“The truck market in 2014 may also benefit from some expansion of industry fleet capacity, reflecting continued strong freight demand,” Sobic said in a statement.
Paccar also is the parent company of Europe-based DAF trucks.