Earnings Watch: Paccar Profit Jump 50% on Record Sales
The parent company of truck makers Peterbilt, Kenworth, and DAF reported on July 24 a 50% rise in profit and forecast the strong truck sales market will continue into 2019.
The parent company of truck makers Peterbilt, Kenworth, and DAF reported on July 24 a 50% rise in profit and forecast the strong truck sales market will continue into 2019.
Paccar Inc. earned net income of $559.6 million, or $1.59 per share, 50% higher than the $373 million, or $1.06 per share, earned in the same period last year.
Second quarter net sales and financial services revenues were a record $5.81 billion, 23% higher than the $4.70 billion achieved in the second quarter of 2017.
“Paccar’s financial results reflect strong global truck demand, increasing Paccar truck production and market share, and robust global aftermarket parts sales,” said Ron Armstrong, CEO. “The positive economic and freight growth in North America and Europe are good indicators that 2019 will be another strong truck market.”
According to Paccar, Class 8 truck industry retail sales for the U.S. and Canada have increased by 32% year-to-date and are expected to be in a range of 265,000 to 285,000 vehicles in 2018.
“U.S. and Canada Class 8 truck industry orders surged by 111% in the first six months of 2018 compared to the same period last year,” said Gary Moore, Paccar executive vice president. “The growing economy and record levels of freight tonnage have resulted in excellent demand for Kenworth and Peterbilt vehicles.”
DAF, based in The Netherlands, achieved a record 16.5% market share in the European above-16-tonne segment in the first half of 2018. European truck industry registrations in the above-16-tonne market are estimated to be in a range of 300,000 to 320,000 vehicles in 2018, which would be the third highest in history, according to the company.
Kenworth, Peterbilt, and DAF delivered a record 46,400 trucks in the second quarter of 2018, 18% higher than in the same period last year.
“Truck deliveries increased in North America, Europe, Australia, and Brazil in the second quarter, reflecting strong customer demand for the industry-leading Kenworth, Peterbilt and DAF trucks,” said Darrin Siver, Paccar senior vice president.
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