Paccar Inc. posted second quarter 2000 net income of $131.1 million on sales of $2.0 billion versus net income of $139.5 million on sales of $2.2 billion a year earlier. First half net income was a record $268 million, up 10% from the first half of 1999.
Sales for the first 6 months were $4.2 billion.
“Paccar’s global balance as a very strong European truck market enabled the company to partially offset slowing North American truck demand and achieve excellent sales and profits,” said Chairman and CEO Mark Pigott.
The U.S. and Canadian truck markets, including Class 8 and Class 5-7, are being negatively impacted by slower freight growth, higher fuel prices and interest rates increased insurance costs and a growing new and used truck inventory, he said. Truck orders for the industry are currently 30% to 40% below last year. “On a positive note, truck production in Mexico remains strong as the country’s economy grows,” Pigott added.
He also noted that in Europe “indications are that the 6-44 ton truck market may equal or even exceed last year’s record sales.” Paccar subsidiary DAF Trucks raised production by 10% in the second quarter and is increasing market share in many European countries.
Paccar increased its share of the medium-duty truck market in the first half of 2000. Class 6 and 7 truck build rates increased over 20% during the second quarter at the company’s new plant in Ste. Therese, Quebec.
“The medium-duty market offers a good opportunity for growth,” said Paccar President David Hovind, noting that the company produced over 15,000 medium duty trucks worldwide this year.
During the quarter Paccar expanded its e-commerce initiatives by forming a partnership with InfoMove to deliver personalized, real-time, location specific traffic navigation to truck drivers operating Paccar’s commercial vehicles. Earlier this year the company formed Truckxchange, a business-to-business marketplace site for goods and services in the trucking industry.