Paccar predicts vehicle sales jump on the back of first quarter numbers
Trucking giant Paccar has seen a 38 per cent earnings growth in the first quarter of 2015 on the back of strong truck sales in both Europe and North America.
Earnings rose to US$378.4 million for the three month period compared to US$273.9 million last year, the company says, and its net sales and financial services saw revenues jump ten per cent to US$4.83 billion from US$4.38 billion in 2014.
Aftermarket part sales also grew in the quarter with Paccar Parts producing $752.7 million in revenue, a four per cent increase on 2014, while Paccar Financial Services dipped on last year in a reflection of lower exchange rates, falling from US$293.7 million to US$284.7 million.
In the US and Canada, Paccar predicts to move 10,000 to 40,000 more vehicles throughout 2015 than its 250,000 in 2014 due to a rebuilding economy.
“The truck market is strong due to the good economy, record freight demand, and expansion of industry fleet capacity,” Paccar executive vice president Dan Sobic says.
“The last two quarters of Class 8 truck industry orders were the strongest since 2006. Kenworth and Peterbilt’s primary truck factories are manufacturing at record levels, reflecting the strong market.”
In the European prime mover market, Paccar is also hoping for slight growth with its DAF range.
“The truck market in Europe is rebounding this year as industry sales in the above 16-tonne truck market are estimated to be in the range of 220,000-250,000 vehicles compared to 227,000 units last year,” DAF president and Paccar vice president Harrie Schippers says.
While the company is expecting growth in its biggest markets, truck sales in South America are not as favourable.
Projections for 2015 believe unit movements will drop from 129,000 vehicles in 2014 to between 90,000 and 110,000 this year.
Paccar Australia declined to comment on local figures.