Paccar Inc. reported excellent results for the first quarter of 2003, according to Mark C. Pigott, chairman and chief executive officer.

First-quarter net sales and financial services revenues were $1.9 billion, an increase of 28% from the first quarter of last year. Net income of $110.8 million ($.95 per share) increased 135% compared to the $47.2 million ($.41 per share) earned in the first quarter of 2002. Paccar began expensing stock options in the first quarter of 2003.
"Paccar's balanced global diversification contributed to the outstanding financial results," said Pigott. "Paccar enhanced its strong financial position by delivering high-quality products and maintaining a sharp focus on cost controls."
"North American industry heavy-duty truck orders were 32% lower in the first quarter compared to first quarter 2002," said David Hovind, vice chairman. "However, it is anticipated that 2003 industry truck sales will be comparable to last year. Even though freight ton miles have improved slightly, the North American industry truck market continues to be challenging."
"European industry truck sales are expected to be 5 to 10% lower than last year. DAF has increased its market share for Class 8 trucks, as its new XF model complements the successful CF and LF vehicles in providing the highest-quality products in the market."
Paccar's Financial Services segment represents a portfolio of more than 115,000 trucks and trailers, with total assets of more than $5.2 billion. Included in this segment is Paccar Leasing, a major full-service truck leasing company in North America, with a portfolio of more than 15,500 vehicles.
First quarter revenues were $114 million compared to $105 million in the same quarter of 2002. Pretax income of $26.7 million increased 175% versus the $9.7 million earned in the first quarter 2002 due to higher asset levels and lower credit losses. "Paccar Financial Services companies continue to profitably support the sale of Paccar's trucks worldwide with innovative financing products," said Mike Tembreull, vice chairman.