PACCAR Q2 Sales and Financial Services Revenues a Record $5.81B

PACCAR announced earnings of $559.6 million in Q2/18, 50% higher than the $373.0 million earned in the same period last year. Second quarter net sales and financial services revenues were a record $5.81 billion, 23% higher than the $4.70 billion achieved in Q2/17.

PACCAR Financial Services (PFS) Q2/18 pre-tax income in 2018 was $72.4 million compared to $62.4 million earned Q2/17. Q2/18 revenues were $338.0 million compared to $306.3 million in the same quarter of 2017.

For the first six months of 2018, PFS earned pre-tax income of $139.9 million compared to $119.2 million last year. First-half 2018 revenues were $670.2 million compared with $608.5 million for the same period a year ago.

“PFS’ portfolio performed well during the second quarter of 2018,” said Bob Bengston, PACCAR senior vice president. “Industry used truck demand has increased in 2018. 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 Corp. president. “We have excellent access to the commercial paper and medium-term note markets, allowing PFS to profitably support the sale of PACCAR trucks.”

PACCAR Financial Services (PFS) has a portfolio of 189,000 trucks and trailers, with total assets of $13.63 billion. PACCAR Leasing, a major full-service truck leasing company in North America and Europe with a fleet of 38,000 vehicles, is included in this segment.

“PACCAR achieved record quarterly revenues and excellent net income in the second quarter of 2018,” said Ron Armstrong, chief executive officer. “PACCAR’s financial results reflect strong global truck demand, increasing PACCAR truck production and market share, and robust global aftermarket parts sales. I am very proud of our 27,000 employees who have delivered outstanding products and services to our customers.” Armstrong added, “The positive economic and freight growth in North America and Europe are good indicators that 2019 will be another strong truck market.”

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