Paccar Inc. had improved revenues and net income for the third quarter of 2010, with results led by higher truck and parts sales and improving profits in worldwide financial services
, according to Mark Pigott, chairman and chief executive officer.
Paccar reported $119.9 million ($.33 per diluted share) for the third quarter of 2010 compared to $13.0 million ($.04 per diluted share) earned in the third quarter of '09. Third quarter net sales and financial services revenues were $2.54 billion compared to $2.01 billion in 2009.
Net sales and financial services revenues for the first nine months of 2010 were $7.24 billion compared to $5.85 billion in the prior year. Paccar reported nine-month net income of $287.8 million ($.79 per diluted share) compared to $65.8 million ($.18 per diluted share) in 2009.
"The global economic recovery is progressing and our customers are benefiting from increased freight tonnage and higher fleet utilization rates, resulting in increased demand for Paccar products and services. I am very proud of our 16,500 employees who have delivered excellent results to our shareholders," Pigott said.
Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 120,000 to 130,000 vehicles in 2010, which is a 10-15 percent increase from last year, according to Dan Sobic, Paccar executive vice president.
"This slow recovery reflects the uneven economy, high unemployment, and the low level of housing starts and automotive production," Sobic said. "There are some encouraging economic signs as freight tonnage has increased by seven percent this year and customers' profitability is benefiting from stable fuel prices and improvements in freight rates.
"Industry retail sales in 2011 are expected to increase, due to the historically high fleet age and general economic growth, to a range of 160,000-180,000 units. This projected sales level is still below normal replacement demand of approximately 225,000 units," added Sobic.
Paccar's aftermarket parts sales continue to increase around the world, and set a quarterly revenue record, said Darrin Siver, parts division general manager. Moderately improved truck utilization rates and an aging North American truck fleet are generating higher levels of parts and service business.
"Operating cash flow of over $1.1 billion in 2010 have enabled ongoing capital investments, which enhance manufacturing operating efficiency and the development of innovative new products, such as the Paccar MX diesel engine," Pigot said.
"The Paccar 12.9-liter engine is being installed in approximately 20 percent of Kenworth and Peterbilt vehicles in the U.S. and Canada.
"The success of Paccar's MX engine reflects its industry-leading performance and fuel economy, as well as the steady transition in the North American truck market to the 13-liter engine specification," he noted.
"The U.S. and Canadian truck market is gradually adjusting to higher-priced vehicles resulting from the EPA 2010 emissions change, but industry truck order rates remain below historical levels.
"European truck industry orders have strengthened compared to a year ago due to rebounding freight demand. In Europe, DAF continues to achieve increased market share, which has contributed to improved financial results," said Pigott,
Paccar's complete financial report is at http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20101026005542&div=2021025501
, according to Mark Pigott, chairman and chief executive officer.
Paccar reported $119.9 million ($.33 per diluted share) for the third quarter of 2010 compared to $13.0 million ($.04 per diluted share) earned in the third quarter of '09. Third quarter net sales and financial services revenues were $2.54 billion compared to $2.01 billion in 2009.
Net sales and financial services revenues for the first nine months of 2010 were $7.24 billion compared to $5.85 billion in the prior year. Paccar reported nine-month net income of $287.8 million ($.79 per diluted share) compared to $65.8 million ($.18 per diluted share) in 2009.
"The global economic recovery is progressing and our customers are benefiting from increased freight tonnage and higher fleet utilization rates, resulting in increased demand for Paccar products and services. I am very proud of our 16,500 employees who have delivered excellent results to our shareholders," Pigott said.
Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 120,000 to 130,000 vehicles in 2010, which is a 10-15 percent increase from last year, according to Dan Sobic, Paccar executive vice president.
"This slow recovery reflects the uneven economy, high unemployment, and the low level of housing starts and automotive production," Sobic said. "There are some encouraging economic signs as freight tonnage has increased by seven percent this year and customers' profitability is benefiting from stable fuel prices and improvements in freight rates.
"Industry retail sales in 2011 are expected to increase, due to the historically high fleet age and general economic growth, to a range of 160,000-180,000 units. This projected sales level is still below normal replacement demand of approximately 225,000 units," added Sobic.
Paccar's aftermarket parts sales continue to increase around the world, and set a quarterly revenue record, said Darrin Siver, parts division general manager. Moderately improved truck utilization rates and an aging North American truck fleet are generating higher levels of parts and service business.
"Operating cash flow of over $1.1 billion in 2010 have enabled ongoing capital investments, which enhance manufacturing operating efficiency and the development of innovative new products, such as the Paccar MX diesel engine," Pigot said.
"The Paccar 12.9-liter engine is being installed in approximately 20 percent of Kenworth and Peterbilt vehicles in the U.S. and Canada.
"The success of Paccar's MX engine reflects its industry-leading performance and fuel economy, as well as the steady transition in the North American truck market to the 13-liter engine specification," he noted.
"The U.S. and Canadian truck market is gradually adjusting to higher-priced vehicles resulting from the EPA 2010 emissions change, but industry truck order rates remain below historical levels.
"European truck industry orders have strengthened compared to a year ago due to rebounding freight demand. In Europe, DAF continues to achieve increased market share, which has contributed to improved financial results," said Pigott,
Paccar's complete financial report is at http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20101026005542&div=2021025501
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