Paccar's profit, sales surge higher than expected

Paccar reported sharply higher sales and profit for the quarter ended June 30, as higher freight volumes increased demand for trucks and spare parts.

The Bellevue-based truck-maker earned $99.6 million, or 27 cents a share, in the fiscal second quarter, almost quadruple its second-quarter 2009 profit of $26.5 million, or 7 cents a share.

Revenue from Paccar's truck-sales and finance wings totaled $2.46 billion, a third higher than in the same quarter last year. Both sales and profit beat Wall Street expectations.

Mark Pigott, Paccar's chief executive, said in a statement that global truck markets were "only gradually emerging from historically low levels," which the 2009 numbers reflected.

"Our customers are benefiting from increased freight tonnage, which has resulted in higher fleet-utilization rates, resulting in positive gains for our aftermarket parts sales," Pigott said.

Sales of trucks and parts rose by nearly 39 percent compared to the second quarter of 2009. Though financial-services revenue actually fell by 3 percent, that unit posted a higher operating profit, thanks to lower interest costs.

Revenue growth was strongest outside Europe and North America, though that is Paccar's smallest geographic segment. In the United States and Canada, which together account for nearly half the company's revenue, business grew by 27.3 percent in the second quarter.

Traders, though, didn't seem too impressed. Paccar shares closed down $1.38, or 2.9 percent, at $45.62 Tuesday.

Drew DeSilver: 206-464-3145 or ddesilver@seattletimes.com