PACCAR Swings to Profit; Q1/17 Class 8 Orders Up 40%

PACCAR reported net income of $310.3 million for Q1/17, which compared to a net loss in Q1/16 of $594.6 million that included a European Commission charge of $942.6 million. First quarter revenues were $4.24 billion compared to $4.30 billion in the same year-ago quarter.

Commenting on the Class 8 truck industry, Darrin Siver, PACCAR sen1or vice president said, “U.S. and Canada Class 8 truck industry orders were 40% higher in the first quarter of 2017 compared to the same period last year. The truck market reflects the good economy and steady freight demand. Peterbilt and Kenworth achieved 32% share of U.S. and Canada Class 8 truck industry orders in the first quarter this year. Class 8 truck industry retail sales for the U.S. and Canada in 2017 are expected to begin the a range of 190,000-220,000 vehicles.”

PACCAR Financial Services Q1/17 pretax income was $57.3 million compared to $80.3 million earned in PFS’s Q1/16. Revenues in Q1/17 were $302.2 million compared to $289.4 million in Q1/16.

“PFs’ portfolio well during the first quarter of 2017,” said Bob Bengston, PACCAR senior vice president. “The industry’s lower used truck values in the U.S. and Canada impacted PFS’s quarter results. Used truck demand is increasing and prices have stabilized.”

PACCAR Financial Services has a portfolio of 178,000 trucks and trailers, with total assets of $12.27 billion. PACCAR Leasing, a major full-service truck leasing company in North America and Europe with a fleet of 37,000 vehicles, is included in this segment.

PACCAR Financial recently opened a new truck remarketing center in Minooka, IL, near Chicago. The new facility complements PFC’s truck remarketing centers in Salt Lake City, UT and Spartanburg, SC. “Kenworth and Peterbilt pre-owned trucks sell at a premium price compared to similar competitor models,” Todd Hobbart, PFC president, commented. “Our portfolio of Kenworth and Peterbilt trucks reflects the popularity of PFC’s excellent truck leasing and financial products.”

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