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Paccar Inc. posted increases in net income and total revenue in the first quarter, the truck maker said in its report released April 26.
The Bellevue, Wash.-based OEM recorded earnings of $600.5 million, or $1.72 a diluted share, for the three months ending March 31. That compared with $470.8 million, $1.35, during the year-ago period. Total revenue increased by 10.6% to $6.47 billion from $5.85 billion.
“Paccar reported excellent revenues and net income for the first quarter of 2022,” CEO Preston Feight said in a statement. “Paccar Parts achieved record quarterly sales and profits as its outstanding operational performance enhanced uptime for customers. Paccar Financial Services delivered record profitability due to excellent portfolio quality, strong new business volume and high used-truck prices.”
Paccar has several new trucks on the market that helped add to quarterly sales figures. The Kenworth T680, Peterbilt Model 579 and DAF XG+ trucks are focused on aerodynamics, fuel efficiency, uptime and the human-machine interface. The company also has its MX-13 Engine on the market.
“Paccar’s investments in vehicle, powertrain and technology initiatives are delivering increased profitability,” Feight said. “Customer demand for Kenworth, Peterbilt and DAF’s new heavy- and medium-truck models is very strong as customers benefit from the trucks’ industry-leading fuel efficiency, reliability and driver comfort.
“The Paccar team is doing an excellent job of managing supply base variability, and we are increasing build rates at our truck factories.”
Of the three main product lines, truck sales were the largest contributor to revenue. Q1 sales increased 11% to $4.7 billion from $4.23 billion during the 2021 period. Truck profits increased 2.5% to $276.7 million from $270 million.
Paccar Parts achieved record quarterly sales and profit. Its income increased 35% to $340.2 million from $251.6 million during the year-ago period. Revenue increased 19.8% to $1.39 billion from $1.16 billion. The results were driven by customers increasing truck utilization and higher average fleet age.
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“Paccar Parts’ business model increases customers’ uptime by providing excellent logistics operations that ensure high-quality parts availability at our dealerships, and expeditious delivery from strategically located parts distribution centers,” Paccar Parts General Manager Laura Bloch said. “This customer-centric business model is supported by Paccar Parts’ programs and technologies.”
Paccar Financial Services also achieved record profits. Income increased 92% to $147 million from $76.4 million the prior year. However, revenue decreased 15% to $366.2 million from $432 million last year.
“Paccar’s strong 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 26 countries on four continents,” Paccar Financial Corp. President Craig Gryniewicz said.
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