Weak truck markets hit Paccar profits

LinkedIn +

Paccar, the US parent of DAF Trucks, has reported lower revenues and net income for the second quarter of 2009. The company earned $26.5 million  for the second quarter of 2009 compared to $313.5 million  earned in the second quarter last year.

Mark  Pigott, chairman and chief executive officer, said: “The recession continues to affect our business in North America and Europe as truck markets remain weak. Second quarter 2009 financial results were negatively impacted by lower gross margins, temporary plant shutdowns and reduced build rates. The challenging market conditions are continuing as we enter the second half of 2009. Paccar has reduced operating expenses, capital expenditures and dividends to proactively position its business with current market conditions.”

Aad Goudriaan, president of DAF, said: “DAF achieved a market share in the above 15-tonne market of 14 per cent in the first half 2009 and has a medium-term market share goal of 20 per cent. The estimate for 2009 industry sales in the above 15-tonne truck market in Europe is being lowered to a range of 170,000-180,000 units, reflecting very challenging economic conditions throughout Europe.

“European industry truck sales in 2010 are difficult to estimate given the current economic uncertainty, but they could be in a range of 150,000-180,000 units, similar to industry sales in 1992.”

Share this story: