Paccar Profit Crashes 96 Percent

Heavy truck manufacturer Paccar eked out a $13 million third-quarter profit on $2 billion in combined truck and financial service revenue, but its net was down 96 percent from a year earlier and its truck segment lost money.

Combined sales fell 50 percent, with Paccar’s “truck and other” revenue category down 52 percent to $1.8 billion.

Chairman and CEO Mark Piggot said the results “continue to reflect the impact of a recessionary economy on freight shipments and truck purchases.”

But he also said Paccar “is one of the very few global companies in the automotive sector to earn a profit this year,” and that its third-quarter revenue was up from three months earlier. Volvo and Daimler reported third quarter operating losses.

Paccar supplies the North American truck market through its Kenworth and Peterbilt nameplates, while its DAF unit builds trucks in Europe for that market and for export to the United States.

Another company official said there are “mildly encouraging signs” for North America, including recent gains in freight tonnage and profitability gains for Paccar customers from lower fuel costs. The company projects a mild upturn in sales next year in the United States and Canada, but to a level still about half of normal fleet replacement demand.

Truck sales in Europe next year may not increase, Paccar projected, as the economic recovery there lags the expected U.S. pace.

Contact John D. Boyd at jboyd@joc.com.