Paccar reports profits down 17.0%; lower truck sales, economy culprits
Paccar predicted that Class 8 retail sales in the U.S. and Canada will be in the range of 210,000 to 220,000 vehicles for all of 2012. (The Trucker file photo of a Kenworth plant)
The Trucker News Services
Paccar Thursday, Oct. 25 reported that total profit declined 17.0 percent to $233.6 million from $281.6 million in the third quarter of 2011, while revenues in the quarter dipped 10.3 percent to $3.8 billion.
“Paccar’s third-quarter results reflect lower industry truck orders in North America and Europe due to the uneven global economy,” said Mark Pigott, Paccar chairman and CEO, in a financial statement.
The trucker and engine maker also reported a 14.3 percent slide in earnings-per-share to 66 cents for the third quarter of 2012 compared with 77 cents in the same quarter of prior year.
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However, Pigott said Paccar dealers and customers have benefited from a good freight demand in North America and Europe “as evidenced by strong aftermarket parts and services business and excellent Paccar financial services performance.”
He noted that both Pacaar name plates Kenworth and Peterbilt launched new truck models, the T680 and the Model 579 respectively, in March at Mid-America and that DAF had unveiled its newest model, the DAF XF Euro 6, at the IAA truck show in Hannover, Germany in September.
A bright spot was that for the first nine months, reported net income was up 20 percent to $858.1 million compared with $714.6 million for the same period last year. “For the first nine months of 2012, Paccar achieved a record Class 8 retail market share in the U.S. and Canada of 29.0 as customers benefited from Kenworth and Peterbilt vehicles’ low operating cost,” said Dan Sobic Paccar executive vice president.
The truck maker predicted that Class 8 retail sales in the U.S. and Canada will be in the range of 210,000 to 220,000 vehicles for all of 2012.
Executives pointed to growth in South America, including Paccar’s new DAF factory in Ponta Grossa, Brazil, which is now under construction, expansion in Russia through the DAF brand, and its range of proprietary engines for 2013 as positive sign posts.
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