PACCAR Financial Achieves Record Results
Published October 26, 2012
Categories: Recent Earnings
PACCAR reported earnings of $233.6 million for the third quarter of 2012 compared to the $281.6 million earned in the third quarter last year. Third quarter net sales and financial services revenues were $3.82 billion compared to $4.26 billion in 2011.
For the first nine months of 2012, PACCAR reported net income of $858.1 million, an increase of 20% compared to the $714.6 million earned in the first nine months of 2011.
Net sales and financial services revenues for the first nine months of 2012 were $13.05 billion, up 13% compared to $11.50 billion last year.
“Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 210,000-220,000 vehicles in 2012. Our customers are benefiting from good freight tonnage and freight rates,” said Dan Sobic, PACCAR executive vice president. “For the first nine months of 2012, PACCAR achieved a record Class 8 retail market share in the U.S. and Canada of 29.0% as customers benefited from Kenworth and Peterbilt vehicles’ low operating cost.
Estimates for U.S. and Canada truck industry Class 8 retail sales in 2013 are in the range of 210,000-240,000 units, driven by ongoing replacement of the aging fleet. Annual replacement demand for the U.S. and Canadian truck market is approximately 225,000 units,” added Sobic.
The following was excerpted from the news release on PACCAR Financial Services (PFS):
“During the third quarter and first nine months of 2012, PFS profit increased due to growth in portfolio balances and a lower provision for credit losses,” said Bob Bengston, PACCAR vice president.
PFS third quarter pretax income was a record $80.4 million compared to $61.8 million earned in the third quarter last year. Third quarter revenues were $273.5 million compared to $264.1 million in the same quarter of 2011. For the nine-month period, revenues were $801.0 million compared to $763.1 million during the same period a year ago.
Pretax income for the first three quarters was a record $229.1 million compared with $169.0 million for the same period a year ago. “Dealers and customers appreciate PFS’s commitment to provide attractive pricing, leading-edge technology solutions, excellent customer service and dedicated support to the transportation industry,” added Bengston.
“PACCAR’s excellent balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers,” said Todd Hubbard, PACCAR Financial president. “A growing asset base and excellent portfolio performance are generating improved earnings. We have excellent access to the commercial paper and medium-term note markets, allowing PFS to profitably support the sale of PACCAR trucks in 23 countries on three continents.”
PFS has a portfolio of over 149,000 trucks and trailers, with total assets growing to $10.57 billion. PacLease, a major full-service truck leasing company in North America and Europe, with a fleet of over 32,000 vehicles, is included in this segment.
To read the PACCAR news release click here.