Chairman Mark Pigott said Paccar's higher profits were largely due to a 75% surge in heavy-duty truck orders in North America in the first half of 2002 compared to the first half of 2001.
"Most of the increase in orders has been due to 'pull-forward purchases,' as fleets try to minimize the impact of more costly engines being introduced on October 1, 2002," he said, warning that fourth quarter industry truck sales could be unfavorably impacted as a result.
Pigott said Paccar subsidiaries Kenworth Truck Co. and Peterbilt Motors Co. steadily increased Class 6-8 production rates for the U.S. and Canada during the second quarter.
Bellevue, WA-based Paccar posted net income of $120.9 million on revenues of $3.3 billion for the first half of the year. That compares to net income of $83.8 million on revenues of $3.1 billion in the first half of 2001.
Paccar added that it made a $77 million final payment on the debt incurred for the 1996 acquisition of DAF Trucks in Europe and contributed $70 million to its pension plans this quarter.
