Paccar Inc., Bellevue, Wash., has reported higher sales and net income for the third quarter and first nine months of 2003 compared with the same periods a year ago,
according to Mark C. Pigott, chairman and chief executive officer.
Third quarter net sales and financial services revenues were $2.1 billion compared to the $2.0 billion reported for the same period in 2002. Net income was $132.5 million compared to the $128.9 million earned in the third quarter last year.
Net sales and financial services revenues for the first nine months of 2003 were $6.0 billion, 13% higher than the $5.3 billion last year. For the first nine months of 2003, Paccar reported net income of $367.4 million, 47% greater than the $249.8 million earned in 2002. Third quarter after-tax return on sales was 6.8%. Annualized after-tax return on beginning equity was 18.8%.
Recent investments and actions by Paccar include the following:

-- Paccar has invested more than $225 million in European truck operations over the past five years, including the update of the entire range of DAF truck products, assembly tooling and production lines, as well as developing industry-leading engines that met Euro III emission requirements two years early.

-- Paccar Parts is nearing completion of an 80,000-square-foot expansion of its Atlanta, Ga. parts distribution center and has opened its new 100,000-square-foot parts distribution center at Leyland, U.K.

-- Kenworth Truck Co. has installed an automated paint system at its truck plant in Renton, Wash., and has commenced construction of a new Engineering Research Center adjacent to the Renton plant.

-- Paccar Mexico recently installed a new chassis paint system and assembly line realignment resulting in improved efficiency and an increase in production capacity.

"Paccar continues to set the profit and quality standard for the commercial vehicle industry worldwide due to these capital investments," noted Pigott. "In contrast, many competitors are trying to reorganize their operations as they struggle with high cost structures, product quality issues and significant pension and post-retirement liabilities."
David Hovind, vice president, said, "North American industry truck orders and build rates have remained steady during 2003. Truck operators are becoming increasingly comfortable with recently introduced engine technology and appreciate the advantage that Kenworth and Peterbilt's superior quality delivers to them. Paccar's North American truck build rates will increase slightly during the fourth quarter to meet customer demand. Paccar's market share of the U.S. and Canadian industry retail sales is currently 23.7 percent, retaining the share gains of recent years. In addition, Kenworth is the quality and market share leader in Mexico and Australia."