Paccar announces record quarter results

North America and Europe sales boost Paccar to record quarter

Paccar announces record quarter results
Paccar's second quarter


Heavy vehicle and engine manufacturer Paccar has announced a record quarterly net income for the second quarter of 2015 on the back of rising sales in North America and Europe.

The DAF, Kenworth and Peterbilt parent company earned US$447.2 million ($609.4 million) for the three month period, a 40 per cent increase on US$319.2 million ($434.9 million) achieved last year.

The second quarter results were on trend for the company, with its net income of US$825.6 million ($1.1 billion) during the first six months of 2015 representing a 39 per cent increase on 2014's result.

Paccar’s net sales and financial services revenue also continued to an upward trend in the second quarter and the last six month period, both rising by 11 per cent on the previous year, equating to US$5.1 billion ($7.0 billion) and US$9.9 billion ($13.5 billion) respectively.

"Paccar’s excellent financial results reflect the benefits of increased truck sales in North America and Europe, record quarterly aftermarket parts profits and robust financial services results worldwide," Paccar CEO Ron Armstrong says.

Vehicle sales in North America rose to 26,800 during the quarter, up from 20,500 in 2014, and in Europe sales jumped from 8,900 to 11,200.

While its two biggest markets saw growth, boosting the total vehicle sales from 33,700 last year to 41,600 in 2015, sales in the rest of the world dropped from 4,300 to 3,600.

Armstrong says Paccar will continue to focus on these growth areas, while expanding its presence in emerging markets.

"Over the last seven years, Paccar introduced new Kenworth, Peterbilt and DAF vehicles, began production of the fuel-efficient Paccar MX engines in North America, opened the DAF Brazil truck factory, and increased the number of Paccar Parts distribution centres," he says.

"In addition, the company expanded Pacccar Financial Services internationally and introduced many industry-leading technologies and services for our dealers and customers."

Paccar Parts achieved a 15 per cent pre-tax profit increase on the second quarter in 2015, but these numbers didn’t equate into revenue growth, dipping by US$1.5 million (US$2 million) on last year.

Paccar Financial Services’ quarterly revenue dropped in 2015 from US$302.6 million ($412.3 million) to US$293.8 million ($400.3 million) and revenue figures from the previous six months were also down.


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