Paccar boosts truck sales, profits
Net income rose to $309.4 million in the third quarter, up from $233.6 million the year before.
Total revenue climbed 13 percent to $4.30 billion.
The company reported sales were up 24 percent in the U.S. and Canada and 16 percent in Europe.
“Our customers in North America are benefiting from higher fleet utilization and record freight tonnage, which are driving industry fleet replacement,” says Paccar Chief Executive Mark Pigott.
The company’s aftermarket parts segment turned in a record $715.3 million in quarterly sales helped by “improving truck utilization and the age of the North American industry truck fleet,” David Danforth, PACCAR Parts general manager, says.
Dan Sobic, PACCAR executive vice president, says truck demand is being driven primarily by the ongoing replacement of the aging truck population and an improving housing sector.
“Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 205,000-215,000 vehicles in 2013,” he says. “Estimates for U.S. and Canada truck industry Class 8 retail sales in 2014 are in the range of 210,000-240,000 units, driven by ongoing fleet replacement and some expansion of industry fleet capacity reflecting modest overall economic growth.”
Penetration of the company’s MX engine reached 35 percent, according to Pigott.