Truck Maker Paccar Profit Falls 91 Percent

Lower build rates, temporary plant shutdowns and reduced gross margins cut profit for truck maker Paccar 91 percent in the first quarter to $26.3 million, the company said.

Revenue fell 52 percent to $1.7 billion in the quarter along with declining sales of Peterbilt and Kenworth trucks in the United States and Canada and DAF trucks in Europe.

“Paccar’s results reflect the impact of a slower economy on freight shipments and truck purchases worldwide,” said Mark C. Pigott, chairman and chief executive officer. Truck markets remained weak, he said, and the challenges continued into the second quarter.

Paccar rigorously reduced operating expenses and capital expenditures to align its business with the current market, said Pigott.

Industry estimates for 2009 sales in the above 15-tonne truck market in Europe run to a range of 180,000-220,000 units, said Aad Goudriaan, DAF president. DAF achieved a 14.1 percent market share in the first quarter and is aiming for a 20 percent share.

“Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 100,000-130,000 vehicles in 2009, reflecting continued economic weakness, specifically in lower housing starts and auto production,” said Dan Sobic, Paccar executive vice president. Sobic did not discuss Kenworth or Peterbilt market share.

Contact Thomas L. Gallagher at tgallagher@joc.com .