>Bellevue-based Paccar earned $39.4 million, or 51 cents a share, compared with $93 million, or $1.31 a share, a year ago. Revenue fell 2 percent to $1.5 billion.
Mark Pigott, chief executive of the parent of the Kenworth, Peterbilt, DAF, Foden and Leyland nameplates, said the North American truck market, where orders are running 37 percent behind a year ago, holds no prospect of immediate improvement, what with a still sizable inventory of new and used trucks. The European market is also slowing.
But in making a profit, Paccar is doing much better than rivals such as Portland-based DaimlerBenz subsidiary Freightliner, which has been closing plants and slashing jobs in an effort to stem red ink. Pigott criticized manufacturers that have seized market share by cutting prices and guaranteeing the residual value of leased trucks. He said dealers of competing brands have contacted Paccar about switching.
"Some people's house of cards has collapsed," he said.
Paccar is in good position not only to weather the storm, but also increase market share because it has a relatively low level of inventory at its dealers, Pigott said, and because its trucks hold their value longer.
Paccar stock rose $1.66 to $53.56 a share in trading yesterday; |
