PACCAR has reported higher sales and net income for the second quarter and first half of 2002 compared with the same periods a year ago. The company said that orders are surging in the US heavy duty truck market ahead of more costly engines due later this year.
Second quarter net sales and financial services revenues were $1.8 billion, 18 percent higher than the $1.5 billion reported for the comparable period in 2001. Net income of $73.7 million ($.63 per diluted share) increased 87 percent from the $39.5 million ($.34 per diluted share) earned in the second quarter of 2001.

Net sales and financial services revenues for the first six months of 2002 were $3.3 billion compared to $3.1 billion last year. For the first six months of 2002, PACCAR reported net income of $120.9 million ($1.04 per diluted share) compared to $83.8 million ($.73 per diluted share) in 2001. On May 28, 2002, PACCAR paid a 50 percent stock dividend of the Company’s common stock (i.e., one additional share for each two shares held).

“PACCAR has earned a profit for 62 consecutive years, through all stages of the business cycle. The market recognizes PACCAR’s excellent balance sheet, the superior quality of Kenworth, Peterbilt, DAF and Foden trucks, as well as the industry-leading aftermarket support provided to our customers,” said Mark C. Pigott, chairman and chief executive officer.

“During the quarter, PACCAR made a $77 million final payment on the debt incurred for the 1996 acquisition of DAF Trucks. Additionally, PACCAR contributed $70 million to the Company’s pension plans to reduce the funding deficit which existed at year-end 2001.”

“PACCAR has a 97-year history of being a leader in strong internal controls and a well-deserved reputation for ethical, high-integrity business practices,” Pigott commented. “PACCAR positively endorses the rigorous standards being applied in the reporting of company financial results.”

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“Industry heavy-duty truck net orders in North America surged nearly 75 percent higher in the first half of 2002 compared to the first half of 2001,” noted Pigott.

“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. Fourth quarter 2002 industry truck sales could be unfavourably impacted as a result of the current accelerated buying and slow growth of general freight. In response to higher demand for their high-quality vehicles, Kenworth and Peterbilt steadily increased Class 8 production rates for the U.S. and Canada during the second quarter. PACCAR’s current production rates for those markets are 75 percent higher than first quarter 2002. Kenworth and Peterbilt Class 6/7 trucks continue to increase their market share.”

“European industry heavy-duty truck sales are 15 percent lower in 2002 compared to the near record levels of 2001,” stated David Hovind, president. “DAF has offset the market decline somewhat with an increase in its market share to a record 13 percent, which makes DAF the fourth largest heavy-duty truck OEM in Europe. The DAF CF vehicle won the U.K. 2002 Motor Transport Fleet Truck of the Year award for an unprecedented fifth time. DAF is increasing its infrastructure and technology investments, has recently opened a new dealership in Berlin and is launching a new web-enabled material logistics software for its distribution network.”