Paccar defies U.S. truck downturn in 1Q

Paccar has logged a $365.6 million profit in the first quarter, which marks a 6.9% increase over the same quarter last year to a record first quarter profit.

“Paccar’s business outside the U.S., which is over 50% of the company’s total revenues, is making a major contribution to the excellent performance, and is providing a counter-cyclical balance to slower business in North America,” stated Mark Pigott, Paccar chairman & CEO. “Paccar’s balanced global diversification has benefited from a strengthened Eurozone economy and steady GDP growth in North America, in combination with the growth of aftermarket parts and financial services.”

However, Pigott also warned, “The lower demand and proactive build rate adjustments will have a dampening effect on company financial results until the company absorbs the new vehicles purchased in 2006.”