Paccar’s Second-Quarter Income Falls 92%

Heavy-duty truck maker Paccar Inc. said Tuesday its second-quarter profit plunged 92% to $26.5 million, or 7 cents a share, from $313.5 million, or 86 cents, a year ago.

Truck sales and revenue fell to $1.6 billion from $3.78 billion, while financial services revenue fell to $243.5 million from 330.5 million, the company said.

Class 8 retail sales in the U.S. and Canada will be 100,000 to 110,000 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.

“There are some encouraging signs as the ISM manufacturing index reached its highest level since August 2008, and freight tonnage improved slightly in June,” he said. “National trucking companies are recognizing the benefits of purchasing new trucks this year as their current vehicles’ maintenance costs increase due to the aging of their fleets.”

Paccar is the parent company of U.S. truck makers Kenworth Truck Co. and Peterbilt Motors Co., and Europe-based DAF Trucks.