Paccar’s 1Q Earnings Rise 38%
Paccar Inc. reported first-quarter income rose 38% from a year go on higher truck sales, and the company predicted higher industrywide U.S. and Canadian heavy-duty truck sales for this year.
Net income rose to $378.4 million, or $1.06 per share, from $273.9 million, or 77 cents, a year ago, the Bellevue, Washington-based OEM reported April 21.
Truck revenue rose 13.2% to $3.77 billion, and overall revenue including parts and financial services rose 10% to $4.83 billion.
Paccar makes truck engines, Kenworth and Peterbilt trucks in North America and DAF trucks in Europe.
The company said it expects Class 8 industrywide sales for the United States and Canada to be 260,000 to 290,000 this year, up from 250,000 last year.
“The truck market is strong due to the good economy, record freight demand and expansion of industry fleet capacity,” said Dan Sobic, executive vice president. “Our customers’ operating efficiency is benefiting from the aerodynamic enhancements to Kenworth and Peterbilt’s trucks and low oil prices.”
Sobic said the past two quarters of Class 8 truck industry orders were the strongest since 2006 and that the Kenworth and Peterbilt primary truck factories are manufacturing at record levels, reflecting the strong market.
