Paccar Inc. reported first quarter earnings of $378.4 million, a 38% gain from the same time a year ago, while net sales and financial services revenue increased 10% to $4.83 billion.

Earnings per diluted share moved up to $1.06 from 77 cents.

The parent of Peterbilt and Kenworth expects Class 8 truck retail sales for the U.S. and Canada in 2015 to be in a range of 260,000 to 290,000 vehicles, compared to the 250,000 vehicles sold in 2014.

“The truck market is strong due to the good economy, record freight demand, and expansion of industry fleet capacity,” said Dan Sobic, Paccar executive vice president. “The last two quarters of Class 8 truck industry orders were the strongest since 2006. Kenworth and Peterbilt’s primary truck factories are manufacturing at record levels, reflecting the strong market.”

Paccar Parts generated revenues of $752.7 million in the first quarter of 2015, a 4% increase compared to the first quarter of 2014. First quarter 2015 pretax income was $138.9 million, an increase of 24%.

Paccar Financial Services, which includes Paccar Leasing, reported lower first quarter revenue of $284.7 million, reflecting lower currency exchange rates compared to $293.7 million in 2014, according to the company. Its first quarter 2015 pretax income was $89 million compared to $85.5 million earned in the first quarter of 2014.

Globally, Paccar, which also owns DAF, noted that the truck market in Europe is rebounding this year. Industry sales in the above 16-tonne truck market are estimated to be in the range of 220,000-250,000 vehicles compared to 227,000 units last year.

In South America, sales in the heavy-duty segment are estimated to be in a range of 90,000-110,000 vehicles this year compared to 129,000 units in 2014.