Paccar has increased production of its Kenworth and Peterbilt trucks, but is cautioning investors that the recent upturn in Class 8 demand may have little to do with the economy.

"Industry truck orders in North America have increased in the last couple months compared to the fourth quarter 2001," noted Chairman and CEO Mark Pigott. "It appears that most of the increase in orders is due to 'pull-forward purchases,' as fleets try to minimize the negative impact of more costly engines being introduced on October 1, 2002. While this will likely have a favorable effect on second and third quarters, the
fourth quarter of 2002 could be unfavorably impacted as a result of the accelerated buying.”
Paccar reported net income of $47.2 million for the first quarter of 2002, a 7 percent increase over first quarter 2001. First quarter net sales and financial services revenues were $1.5 billion, about the same as last year. Pigott noted that Paccar has been profitable for 62 consecutive years, throughout all stages of the business cycle.
First quarter revenues for Paccar’s Financial Services segment were $105 million compared to $120 million in the same quarter of 2001. Pretax income of $9.7 million declined from $11.7 million in first quarter 2001, but was 39 percent higher than the fourth quarter 2001.
"Fleet bankruptcies in the U.S. have moderated, and used truck prices for Paccar vehicles have improved 10-15 percent, which has positively impacted the financial services business,” noted Mike Tembruell, vice chairman. “Paccar has introduced new electronic credit programs for its dealers, which are enabling them to enhance their analysis and transaction processing."
In Europe, Paccar’s DAF subsidiary has increased its market share for Class 8 trucks to a record 13 percent, even as European industry truck sales are 15 percent lower in 2002 compared to the near record levels of 2001.
Paccar Winch had earnings comparable to first quarter last year.