Truck Builder Paccar Profits Up On Sales Rise

CHICAGO, July 24, 2003; Reuters reported that Paccar Inc. said on today their quarterly earnings rose as orders for heavy-duty trucks picked up.

Demand for heavy-duty trucks in the United States, which collapsed two years ago due to the weak economy and a glut of vehicles, has recently shown signs of a rebound, with freight tonnage hauled by carriers trending upward.

However, demand in Europe remains weak, with industrywide sales of heavy trucks expected to decline by 5 percent this year from a year ago, Paccar said.

Paccar, the maker of Peterbilt and Kenworth brand trucks, said U.S. truckers are more comfortable with new engine technology introduced to meet stricter federal pollution guidelines. Demand for new trucks dived late last year as buyers held off on purchases until they had a chance to test the new engines.

Paccar said second-quarter net income rose to $124.1 million, or $1.06 a share, from $73.7 million, or 63 cents a share. Sales rose to $2.0 billion from $1.8 billion.