PACCAR Reports Higher Q2 Earnings; Warns of Looming Slowdown
Published July 25, 2012
Categories: Recent Earnings
PACCAR said it earned $297.2 million for the second quarter of 2012, a 24% increase compared to $239.7 million earned in the second quarter last year. For the first six months of 2012, PACCAR reported net income of $624.5 million, an increase of 44% compared to the $433.0 million in 2011.
Mark Pigott, chairman and chief executive officer said, “PACCAR’s second quarter results reflect the benefits of higher truck sales in North and South America and good financial services results worldwide as compared to the second quarter of 2011.” Pigott added, however, “The weak economic growth in the U.S., coupled with the ongoing uncertainty in the euro-zone, could dampen truck orders for the remainder of 2012.”
“Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 210,000-230,000 vehicles in 2012. Industry retail sales in 2011 were 197,000 units”, said Dan Sobic, PACCAR executive vice president.
The following commentary was excerpted from the PACCAR new release on PACCAR Financial Services (PFS):
The truck maker said PFS’s second quarter pretax income improved to a record $77.4 million compared to $56.9 million earned in the same quarter in 2011. The company said PFS profit increased due to growth in portfolio balances and a lower provision for credit losses.
Second quarter revenues were $266.1 million compared to $258.0 million in the same quarter of 2011. For the six-month period, pretax income was $148.7 million compared to $107.2 million last year. First-half revenues were $527.5 million, compared with $499.0 million for the same period a year ago.
“Dealers and customers appreciate PFS’s commitment to providing leading-edge technology solutions, excellent customer service and dedicated support of the transportation industry in all phases of the business cycle,” said Bob Bengston, PACCAR vice president.
“PACCAR’s strong 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, medium-term note and syndicated loan markets, allowing PFS to profitably support the sale of PACCAR trucks in 23 countries on three continents.”
To read the PACCAR news release click here.