Paccar’s Third-Quarter Net Income Plunges 96%

Paccar Inc.’s third-quarter profit plunged 96% to $13 million, or 4 cents a share, from $299 million, or 82 cents, a year ago.

Sales fell 50% to $2 billion, the company said Tuesday. Paccar is the parent company of U.S. truck makers Kenworth Truck Co. and Peterbilt Motors Co., and Europe-based DAF Trucks.

The results “continue to reflect the impact of a recessionary economy on freight shipments and truck purchases,” Chairman and Chief Executive Officer Mark Pigott said in a statement.

Truck sales and revenue fell to $1.8 billion from $3.7 billion a year ago, while the truck division took an operating loss of $6.2 million compared with a profit of $361 million a year ago.

Financial services revenue fell to $241.7 million from $321.8 million last year, the company said. The unit’s net income fell to $13 million, from $299 million.

“Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 100,000-110,000 vehicles in 2009, reflecting continued economic weakness, particularly in lower housing starts and auto production,” said Dan Sobic, Paccar’s executive vice president.