PACCAR reported that its PACCAR Financial Services (PFS) first quarter 2011 pretax income was $50.3 million compared to the $28.1 million earned in the first quarter of 2010. First quarter 2011 revenues were $241.0 million compared to $246.4 million in 2010.

“During the first quarter of 2011, profit increased due to better finance margins and an improved provision for credit losses,” said Bob Bengston, PACCAR vice president. The provision for credit losses was $10.5 million in the first quarter of 2011 versus $18.4 million in the same period in 2010.

PFS has a portfolio of 134,000 trucks and trailers, with total assets of $8.15 billion. PACCAR Leasing, a major full-service truck leasing company in North America with a fleet of over 30,000 vehicles, is included in this segment.

“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 Ken Roemer, PACCAR Financial sales manager. “Higher freight volumes and increasing freight rates have improved our customers’ profitability leading to lower past dues and provisions for credit losses. In addition, we are benefiting from higher used truck prices, which continue to improve from prior year levels by 15-20%.