Paccar’s 3Q Profit Rises 20%
Paccar Inc., the parent company of Kenworth Truck Co. and Peterbilt Motors Co., posted 20% profit growth in the third quarter and cited a stronger freight environment for its customers.
Net income increased to $371.4 million, or $1.04 per share, from $309.4 million, or 87 cents, in the same period last year.
Net sales and financial services revenue rose 15% to a quarterly record of $4.93 billion, the company said Oct. 28.
“Our North American customers are benefiting from good economic growth, record freight tonnage, improving freight rates and the excellent operating efficiency of our new Kenworth and Peterbilt models in the on-highway and construction markets,” CEO Ron Armstrong said in the report.
He also said Paccar’s North American truck factories have increased build rates to meet “strong demand” for the company’s Kenworth and Peterbilt Class 8 trucks.
Paccar boosted its full-year estimate for industrywide Class 8 retail sales in the United States and Canada to between 245,000 and 255,000 trucks, up from its projection of 230,000 to 250,000 three months ago.
The truck maker also forecast that the 2015 Class 8 market would see retail sales between 240,000 and 270,000 vehicles.
“Our customers are benefiting from good economic growth, improving freight rates and lower fuel prices,” said Paccar Executive Vice President Dan Sobic said. “Many of our customers are expanding their fleets, in addition to replacing older vehicles, which is excellent news for the industry.”
Quarterly revenue at Paccar Parts rose 10% to a record $784.2 million, the company said.
Paccar also is the parent company of Europe-based DAF trucks.
