Paccar reported net sales and revenues of $3.06 billion for Q2 2020. Year-to-date sales of $8.22 billion are down 37 percent from $13.12 billion reported in 2019.
“Paccar achieved good quarterly revenues and net income in the second quarter of 2020,” said Preston Feight, CEO, in a prepared statement. “Paccar closed its factories for five weeks at the beginning of the quarter and has gradually resumed production while enhancing operating processes and procedures for employee health and well- being, manufacturing efficiency and customer satisfaction.”
Net income for the quarter was $147.7 million, down 76 percent from the $619.7 million earned in the same period last year.
“Paccar’s truck production and Paccar Parts’ aftermarket sales steadily increased as the quarter progressed,” said Feight. “Paccar’s quarterly profits are a direct result of its proven business model: premium trucks and transportation solutions, flexible manufacturing processes, a strong balance sheet, and rigorous cost control while maintaining R&D and capital investments that drive long-term growth.”
Paccar reported first half net income of $507.1 million, compared to $1.25 billion earned in the first six months of 2109.
“PACCAR is in excellent financial position, with manufacturing cash and marketable securities of $4.17 billion at June 30, 2020 and bank facilities of $3.0 billion,” said Mark Pigott, executive chairman, in a statement.
Global truck markets
“The U.S. and Canada Class 8 truck market is rebounding as state and local economies re-open,” said Mike Dozier, SVP, in a statement. “Customers benefited from lower fuel costs, and many sectors experienced higher freight volumes and improved freight pricing as the quarter progressed. Class 8 truck industry orders in June were 28 percent higher than June last year.” Class 8 truck industry retail sales in the U.S. and Canada are estimated to be in a range of 160,000 to 190,000 trucks in 2020, though the market size and economy could be impacted if there was a resurgence of Covid-19.
Source: Paccar
