Paccar reports drop in revenues and earnings
Feb 8, 2002 12:00 PMTruck manufacturer Paccar Corp., whose subsidiaries include both Kenworth and Peterbilt, has reported that both revenues and net income dropped for the fourth quarter of 2001 and for 2001 overall.
Bellevue, WA-based Paccar said its fourth-quarter revenues in 2001 dropped slightly to $1.5 billion, down from $1.7 billion during the same period in 2000. Earnings fell as well, dropping to $50.4 million in the fourth quarter of 2001, down from $62.7 million during the same quarter in 2000.
For 2001 overall, Paccar's revenues shrank 23%, dropping to $6.1 billion, down from $7.9 billion in 2000. Net income dropped as well, falling to $173.6 million in 2001, down from $441.8 million in 2000.
The forecast for 2002 is grim, according to Paccar. Although the North American transportation industry has benefited recently from lower interest rates and fuel prices, Paccar president David Hovind said these factors were more than offset by lower freight tonnage, higher insurance costs and declining used-truck values.
"It is anticipated that industry Class 8 orders this year will be comparable to 2001," Hovind said.
The European truck market was good in 2001, compared to 2000, he said, adding though that it is anticipated that that market could be lower by 20% to 25% this year. Paccar operations in Europe include Foden, Leyland and DAF.