PACCAR reported that its PACCAR Financial Services (PFS)unit third-quarter pretax income was $61.8 million compared to the $41.5 million earned in the third quarter last year.

Finance margin increased in the third quarter of 2011 to $96.5 million versus $76.3 million in the third quarter of 2010 due to growth in the portfolio, higher used truck prices and lower borrowing costs.

Third quarter revenues were $264.1 million compared to $238.3 million in the same quarter of 2010. For the nine-month period, revenues were $763.1 million compared to $724.0 million during the same period a year ago and pretax income was $169.0 million compared with $103.6 million in 2010.

“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 in 20 countries on three continents,” said Todd Hubbard, PACCAR Financial president. “Higher freight volumes and increasing freight rates have improved our customers’ profitability leading to lower past dues and provisions for credit losses compared to 2010. Used truck prices also continue to improve from prior year levels by 15-20 percent.”

“During the third quarter and first nine months of 2011, profit increased as a result of better finance margins and improved portfolio performance,” said Bob Bengston, PACCAR vice president. Global Business Initiatives Accelerate

PFS has a portfolio of over 139,000 trucks and trailers, with total assets of $8.83 billion. PACCAR Leasing, a major full-service truck leasing company in North America and Europe, with a fleet of over 31,000 vehicles, is included in this segment.