Paccar income, truck sales improving
Improving truck sales in the U.S. and Canada and strong aftermarket parts and financial services results worldwide pushed Paccar’s revenues and net income forward during the second quarter of 2014.
The company earned $319.2 million for the second quarter of 2014, an increase of 9 percent compared to $291.6 million earned in the second quarter of 2013.
“Class 8 industry retail sales for the U.S. and Canada in 2014 are improving and are expected to be in the range of 230,000-250,000 vehicles,” says Dan Sobic, Paccar executive vice president. “Our customers are benefiting from record levels of freight tonnage, good freight rates and the excellent operating efficiency of the new Kenworth and Peterbilt trucks for the on-highway and vocational segments.”
“Truck demand is being driven primarily by the ongoing replacement of the aging truck population, economic growth and some expansion of fleet capacity,” Sobic adds.
Paccar Parts generated record quarterly revenues of $778 million in the second quarter of 2014, a 10 percent increase compared to $709.5 million of revenues achieved in the second quarter of 2013.
“Paccar Parts’ innovative dealer marketing programs, improving fleet utilization and the age of the North American truck fleet are contributing to excellent parts and service business. Paccar’s 16 parts distribution centers support over 2,000 DAF, Kenworth and Peterbilt dealer locations, which deliver industry-leading customer service,” says David Danforth, PACCAR Parts general manager.
“The Paccar and TRP all-makes brands have been good contributors to Paccar’s aftermarket sales growth.”
Paccar Parts is planning to begin construction of a new 176,000 square-foot distribution center in Renton, Washington in the fourth quarter 2014, which Tony McQuary, Paccar Parts assistant general manager, says will more than double the distribution capacity for the company’s dealers and customers in northwestern U.S. and western Canada.