PACCAR reported Q1/16 net sales and financial services revenues were $4.30 billion compared to $4.83 billion for Q1/15. PACCAR earned adjusted net income of $348.0 million in Q1/16, excluding a $942.6 million non-recurring charge for the European Commission investigation of all European truck manufacturers.

The company earned net income of $378.4 million in Q1/15. Including the non-recurring charge, which is not tax deductible, PACCAR reported a net loss of $594.6 million in Q1/16. The company said it will continue to evaluate the amount of the charge pending final resolution of the proceeding.

Class 8 truck industry retail sales for the U.S. and Canada in 2016 are expected to be in a range of 220,000-250,000 vehicles, the third highest market in the last 10 years. “The truck market reflects the good economy and steady freight demand,” said Gary Moore, PACCAR executive vice president. “Our customers’ operations are benefitting from the fuel-efficient PACCAR MX engines, Kenworth and Peterbilt aerodynamic trucks and low oil prices.”