BELLEVUE, WA — Truck manufacturer Paccar announced a nine-percent increase in profit in the second quarter of 2014 and Paccar Parts is building a new distribution center in Washington.
"This new facility will more than double the distribution capacity for our dealers and customers in northwestern United States and western Canada,” said Tony McQuary, Paccar Parts assistant general manager.
Paccar Parts is planning to begin construction of a new 176,000 square-foot distribution center in Renton, WA, in the fourth quarter 2014. The announcement comes after Paccar Parts announced record quarterly revenues of $778 million in the second quarter of 2014, a 10-percent increase compared to $709.5 million of revenues in the second quarter of 2013.
And Class 8 truck sales are healthy in the U.S. and Canada, according to Dan Sobic, Paccar executive VP.
"Class 8 industry retail sales for the U.S. and Canada in 2014 are improving and are expected to be in the range of 230,000 to 250,000 vehicles,” Sobic said.
Paccar earned $319.2 million, or 90 cents per diluted share, in Q2 2014, an increase of nine percent compared to $291.6 million, or 82 cents per diluted share, earned in Q2 2013.
Second quarter net sales and financial services revenues were $4.57 billion, a six-percent increase compared to the second quarter of 2013.
"Truck demand is being driven primarily by the ongoing replacement of the aging truck population, economic growth and some expansion of fleet capacity," Sobic said.
For the first six months of 2014, Paccar reported a net income of $593.1 million, or $1.67 per diluted share, compared to $527.7 million, or $1.49 per diluted share, in 2013, an increase of 12 percent.
Net sales and financial services revenues for the first six months of 2014 were $8.95 billion.
