A strong world truck market has helped US based truck making ground Paccar to record impressive growth in profit and record revenues for the second quarter of 2019.
The parent company of Kenworth and DAF as well as Peterbilt recorded a net income of $AUD896 million ($US619.7 million) for the three months to the end of June representing a 10.7 per cent increase from the same quarter in 2018.
The company based in Seattle attributed the revenue and profit rise to record truck production and parts sales.
“Peterbilt and Kenworth 2019 production schedules are substantially full. Customers are ordering trucks for delivery in the first half of 2020,” Paccar’s CEO Preston Feight said.
Paccar revenue rose 14.6 percent to $AUD9.1billion ($US6.3 billion).
Paccar also said that it believes the truck market will be strong for the rest of this year.
“The growing North American economies and record levels of freight tonnage have resulted in excellent demand for Kenworth and Peterbilt trucks,” said Paccar’s executive vice president Gary Moore.
The company now believes that the North American (U.S. and Canada) market will reach around 300,000 to 320,000 by year end which is about two per cent ahead of previous expectations and around seven per cent above the 2018 tally.
Paccar told the markets that it will spend more than $AUD 460 million ($US320 million) on R &D this year including developing more aerodynamic truck models and integrating powertrains, including zero emission electrification and hydrogen fuel cell technolgies. The company also said that it is also working on truck connectivity and advanced driver assistance systems.
It also will spend between $AUD 977 million and $AUD1.05 billion ($US675 million and $US725 million) on capital projects including major enhancements to its manufacturing and parts distribution facilities, including substantial investments her in Australia, that it said would bolster future growth.
For example, it will spend $AUD144 million ($US100 million) on a new, environmentally friendly paint facility at its Ohio, Kenworth plant and is also is investing in automated machining and assembly equipment for its Mississippi engine factory expanding production of its proprietary MX-13 and MX-11 engines which are being fitted in increasing numbers to its Kenworth, Peterbilt and DAF trucks.