PACCAR Financial Reports Lower Q2 Earnings Despite Higher Revenue

PACCAR Financial Services (PFS) reported Q2/17 pre-tax income was $63.0 million compared to $77.3 million earned in Q2/16. Second quarter 2017 revenues were $306.3 million compared to $297.4 million in the same quarter of 2016.

For the first six months of 2017, PFS earned pre-tax income of $120.3 million compared to $157.6 million last year. First-half 2017 revenues were $608.5 million compared with $586.8 million for the same period a year ago. “PFS’ portfolio performed well during the second quarter of 2017,” said Bob Bengston, PACCAR senior vice president. “Industry used truck demand increased this quarter in the U.S. compared to the first quarter of 2017. Kenworth and Peterbilt vehicle resale values continue to command a 10% to 20% premium over competitors’ trucks.”

“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 24 countries on four continents,” said Todd Hubbard, PACCAR vice president and PACCAR Financial president. “We have excellent access to the commercial paper and medium-term note markets, allowing PFS to profitably support the sale of PACCAR trucks.”

PFS has a portfolio of 180,000 trucks and trailers, with total assets of $12.69 billion. PACCAR Leasing, a major full-service truck leasing company in North America and Europe with a fleet of 36,000 vehicles, is included in this segment.

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