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Paccar Announces Improved First Quarter Revenues and Earnings

April 22, 2010
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BELLEVUE, WA - Paccar reported improved revenues and net income for the first quarter of 2010,” says Mark C. Pigott, chairman and chief executive officer. “Paccar’s results reflect the benefits of stronger truck sales in North America and an improvement in financial services profits and parts revenues worldwide. I am very proud of our 15,000 employees who have delivered superior results to our shareholders and customers in a very challenging recession. Paccar’s excellent performance in profitability, shareholder return and new product development, against a backdrop of a very difficult global automotive industry, is remarkable.”

“Paccar’s strong balance sheet and positive cash flow have enabled the company to maintain ongoing investments to enhance operating efficiency and develop innovative products such as the Paccar MX diesel engine and introduce many new truck models. These investments contribute to the company’s long-term growth,” notes Pigott. “Financial results for the first quarter reflect the benefit of a small ‘pre-buy’ in the U.S. and Canadian markets as customers transition to the new EPA 2010 engine emission technology. However, the U.S. and Canada truck markets are being negatively impacted in the second quarter as the industry adjusts to higher-priced vehicles.”

Paccar earned $68.3 million for the first quarter of 2010 compared to $26.3 million in the first quarter last year. First quarter net sales and financial services revenues were $2.23 billion compared to $1.99 billion reported for the first quarter of 2009.

DAF’s premium vehicles are the quality leaders in Europe. “DAF achieved a record market share in the above 15-ton market of 14.8% in 2009 and has a medium-term market share goal of 20%. The estimate for 2010 industry sales in the above 15-ton truck market in Europe is 150,000 to 180,000 units, in line with 2009,” notes Harrie Schippers, DAF president.

“Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 110,000 to 140,000 vehicles in 2010, reflecting the uneven economy, particularly the continued low level of housing starts and auto production,” says Dan Sobic, Paccar executive vice president. “The good news is that freight tonnage has increased modestly on a year-on-year basis in the last few months. Additionally, our customers’ profitability is benefiting from reasonable fuel prices and good availability of drivers.” Adds Sobic, “Truck retail sales are still below replacement demand levels, resulting in the North American truck fleet age of nearly seven years. The truck industry is generating slightly better parts and service business due to the aging fleet and higher tonnage.”

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