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Paccar, Daimler Report Lower Earnings and Revenue

April 24, 2013

By Evan Lockridge

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Overall business and profits dropped in the first quarter of the year for the parent companies of several truck makers.

The maker of Kenworth and Peterbilt, Paccar, says it earned $236.1 million for the first quarter of 2013 compared to $327.3 million in the first quarter last year. Net sales and financial services revenues were $3.92 billion compared to $4.78 billion reported for the first quarter of 2012.

“Paccar’s truck segment results compared to last year reflect a decline in industry truck sales in North America due to slower economic growth,” says Mark Pigott, chairman and chief executive officer. “Paccar generated steady aftermarket parts and service business and strong Paccar Financial Services performance.”

The company expects Class 8 industry retail sales for the U.S. and Canada in 2013 to be in a range of 210,000-240,000 vehicles, compared to the 225,000 vehicles sold in 2012. Truck sales this year will be driven primarily by the ongoing replacement of the aging truck population and projected economic growth in the second half.

"The truck market should benefit from improvements in job growth and auto production, as well as increased housing starts and construction activity,” said Dan Sobic, Paccar executive vice president.

On the engine manufacturing side, Paccar said it has installed more than 35,000 of its MX-13 engines in Kenworth and Peterbilt trucks in North America since the start of production in mid-2010.

More details are available on the Paccar website

Meantime, Daimler AG of Germany, the parent to Freightliner and Western Star trucks here in North America, reports net profit fell to 564 million euros ($733 million) from 1.42 billion euros during the same quarter a year ago. Revenue was down 3% at 26.1 billion euros. ($33.9 billion).

The company blamed the decline on sales sliding under its Daimler Trucks banner as well as slower sales of Mercedes-Benz cars and vans.

Daimler reported truck sales in the U.S. fell 3% in the first quarter of the year with 26,641 units sold, compared to the same time in 2012. Worldwide sales were down 6% during the same period to a little more than 101,000 trucks.

The company forecasting global demand for medium-duty and heavy-duty trucks to “grow perceptibly” in 2013, depending on how the economy moves in China. Demand in North America should stabilize in the coming months, the company said, but it anticipates market contraction of up to 5%.

More details are available on the Daimler website.

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