Paccar profits, sales grow

Jason Cannon

April 29, 2014

1598218_10201440117545105_1079122320_nPaccar joined the line of U.S. truck makers experiencing higher than expected sales in the first quarter of this year.

The maker of Peterbilt and Kenworth units reported Tuesday earnings of $273.9 million for the first quarter of 2014 compared to $236.1 million in the first quarter last year. First quarter 2014 net sales and financial services revenues were $4.38 billion compared to $3.92 billion reported for the first quarter of 2013.

Class 8 industry retail sales for the U.S. and Canada in 2014 are expected to be in a range of 220,000-240,000 vehicles, compared to the 212,000 vehicles sold in 2013.

“The truck market in 2014 may also benefit from some expansion of industry fleet capacity, reflecting continued strong freight demand,” says Dan Sobic, Paccar executive vice president, adding Paccar achieved a 29.7 percent share of the Class 8 North American truck market in 2013.

Paccar Parts generated quarterly revenues of $726.6 million in the first quarter of 2014, a nine percent increase compared to $667.4 million of revenues achieved in the first quarter of 2013. First quarter 2014 pretax income was $112.1 million, an increase of 18 percent compared to the $95.3 million earned in the first quarter of 2013.

David Danforth, Paccar Parts general manager, says growth in Paccar’s aftermarket part sales has been driven by ongoing investment in distribution, technology and products, including the growth of the company’s parts global TRP all-makes brand.

“Improving fleet utilization and the age of the North American truck fleet are contributing to excellent parts and service business,” he adds.

Paccar says it plans a production increase of 8 to 10 percent in the second quarter.

“I’d say, on the heavy versus medium, I would say that the increases are comparable across those categories,” Ronald E. Armstrong, Paccar Chief Executive Officer and Director, says. “And in terms of geography, I’d say the increase in the U.S. and Canada is probably a little bit higher than that average percentage, and Europe is a little bit below that.”

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