Paccar’s First-Quarter Income Declines
Heavy-duty truck maker Paccar Inc. said Tuesday its first-quarter profit plunged to $26.3 million, or 7 cents a share, from $292.3 million, or 79 cents, a year ago.
Total sales and revenue fell to $1.99 billion from $3.94 billion, while truck and related revenue fell to $1.73 billion from $3.62 billion, the company said.
Class 8 retail sales in the U.S. and Canada will be 100,000 to 130,000 vehicles this year, “reflecting continued economic weakness, specifically in lower housing starts and auto production,” Paccar Executive Vice President Dan Sobic said in a statement.
“The good news is that even though freight tonnage is below year-ago levels, it has improved slightly in the last two months,” he said. “The truck industry is generating steady parts and service business due to the aging fleet and truck sales are poised to rebound when economic conditions improve.”
Paccar is the parent company of U.S. truck makers Kenworth Truck Co. and Peterbilt Motors Co., and Europe-based DAF Trucks.
