Paccar, Cummins report increased 2Q revenues, earnings

Truck sales drive Paccar earnings up

Improving truck sales in the U.S. and Canada and strong aftermarket parts and financial services results worldwide pushed Paccar’s revenues and net income forward during the second quarter of 2014.

The company saw earnings of $319.2 million for the second quarter of 2014, an increase of 9 percent compared to $291.6 million earned in the second quarter of 2013. Those numbers stem from the company’s $4.57 billion in net sales and financial services revenue for the quarter.

“Class 8 industry retail sales for the U.S. and Canada in 2014 are improving and are expected to be in the range of 230,000-250,000 vehicles,” says Dan Sobic, Paccar executive vice president. “Truck demand is being driven primarily by the ongoing replacement of the aging truck population, economic growth and some expansion of fleet capacity.”

On-highway market boosts Cummins’ revenue

Cummins says its 7 percent revenue increase in the second quarter (compared to 2013 2Q) was spurred by stronger demand in on-highway applications. The company’s revenue in the quarter was $4.8 billion, primarily driven by a 14 percent increase in North American revenue.

The company’s EBIT (earnings before interest and taxes) were $657 million, or 13.6 percent of sales. That’s up from last year’s $621 million.