Detroit Diesel Corp. reported first quarter 2000 net income of $10.1 million on revenues of $536 million versus record net income of $12.5 million on $592 million for first quarter 1999.
Total first quarter engine shipments were 36,400 versus 42,400 a year earlier. The company said unit volume was impacted by a reduction in Series 60 and two-cycle engine shipments, partially offset by increased demand for Series 2000, Series 4000 and light duty engines for off-road applications.
"The decline in production within the heavy duty truck market, while much anticipated, has occurred rather swiftly, with essentially every major truck OEM reducing build rates during the first quarter," said president and CEO Charles McClure. "Our current forecast suggests a decline of 20% in North American heavy duty truck production from the record 1999 level."
McClure said Detroit Diesel will continue to focus on reducing costs to offset the effect of reduced industry demand. It will also continue efforts to generate growth in its off-road, automotive and parts, and remanufacturing businesses which provide a buffer to reduced demand for heavy duty truck engines.
Revenues in the on-highway market were $335 million versus $379 million in first quarter 1999. Shipments of the Series 60 engine for on-highway truck applications declined 17%.
Total first quarter engine shipments were 36,400 versus 42,400 a year earlier. The company said unit volume was impacted by a reduction in Series 60 and two-cycle engine shipments, partially offset by increased demand for Series 2000, Series 4000 and light duty engines for off-road applications.
"The decline in production within the heavy duty truck market, while much anticipated, has occurred rather swiftly, with essentially every major truck OEM reducing build rates during the first quarter," said president and CEO Charles McClure. "Our current forecast suggests a decline of 20% in North American heavy duty truck production from the record 1999 level."
McClure said Detroit Diesel will continue to focus on reducing costs to offset the effect of reduced industry demand. It will also continue efforts to generate growth in its off-road, automotive and parts, and remanufacturing businesses which provide a buffer to reduced demand for heavy duty truck engines.
Revenues in the on-highway market were $335 million versus $379 million in first quarter 1999. Shipments of the Series 60 engine for on-highway truck applications declined 17%.
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