PACCAR Financial profits hit

01/02/2010
PACCAR Financial Services (“Paccar”) reported significantly reduced fourth-quarter pretax income of $35.6 million, compared to the $45.4 million earned in the fourth quarter of 2008. Fourth quarter revenues reflected this also, falling to $254.9 million compared to $292.2 million in the same quarter of 2008. Paccar said that profit in 2009 was impacted by lower finance margins, and higher truck repossessions, in Europe. The fourth quarter was the most profitable quarter of 2009 for Paccar as finance margins increased, and the provision for credit losses improved. Paccar president Tim Henebry commented, “Finance margins benefited from stronger credit markets and used truck values are beginning to improve in North America and Europe. The provision for credit losses in the fourth quarter of 2009 was $23.7 million, compared to the $26.6 million in the third quarter of 2009, reflecting progressive improvement in past-due accounts. Credit losses are improving in the U.S. and Canada compared to the second half of 2008. European credit losses have improved in the second half of 2009 compared to the first half.” Paccar has a portfolio of 143,000 trucks and trailers, with total assets of $8.4 billion. PACCAR Leasing, a major full-service truck leasing company in North America and Europe with a fleet of over 30,000 vehicles, is included in this segment.

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