With an 80% increase in U.S./Canadian truck sales and a 64% jump in Europe, Paccar Inc. (Nasdaq:PCAR) reported $281.6 million in profits for the third quarter, compared to $119.9 million for the same quarter in 2010.
Better results for its financial services also helped the maker of Kenworth, Peterbilt and DAF trucks record total revenue of $4.26 billion for the quarter, the highest quarterly revenue in the company’s history, according to Mark Pigott, president & CEO.
At $.77 a share, the third quarter profits exceeded analysts’ expectations by $.07 a share, according to a poll by Thomson Reuters.
“Increased truck deliveries, higher aftermarket sales and a growing financial services business worldwide contributed to increased profits,” Pigott said in reporting the 3Q results.
Paccar’s North America customers “are benefiting from increased freight tonnage and higher fleet utilization which are driving the replacement of their aging fleets, resulting in increased demand for Pacca products and services,” according to Pigott. While European truck registrations have improved compared to 2010, he added that “recent Eurozone economic uncertainties have resulted in lower industry truck orders.”
Paccar’s net income for the first nine months of 2011 totaled $714.6 million ($1.95 per share), which was more than double the $287.8 million ($.79 per share) earned in the first three quarters of 2010.