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PACCAR's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: PCAR

As with prior conference calls, if there are members of the media participating, we request that they participate in a listen-only mode. Certain information presented today will be forward-looking and involve risks and uncertainties, including general economic and competitive conditions that may affect expected results.

I would now like to introduce Mark Pigott.

Mark C. Pigott

Good morning. PACCAR reported excellent quarterly revenues and net income for the first quarter of 2012. PACCAR's first quarter sales and Financial Services revenues were $4.8 billion compared to $3.3 billion in the first quarter of 2011, a 45% increase. Quarterly net income increased to $327 million, a 69% increase versus the $193 million earned a year ago. I'm very proud of our 23,200 employees who have delivered industry-leading products and services to our customers worldwide.

Increased truck deliveries in North America, higher aftermarket sales and a growing Financial Services business contributed to PACCAR's increased profits. Our customers in North America are benefiting from increased freight tonnage and higher freight rates, which are generating good profitability and enabling them to replace their aging fleets. The vocational truck market in the U.S. and Canada remains subdued due to the low levels of new housing starts.

One of the highlights and we're very pleased with the positive response to the launch of the new Kenworth T680 and the Peterbilt Model 579. These exciting new trucks are the result of a 4-year, $400 million program that designed and developed a new family of 2.1 meter-wide cabs. These new trucks expand our product range and complement our existing vehicles. For the first time in our history, Kenworth and Peterbilt have a 3-cab family. PACCAR's range of 3 cab sizes is similar in format to BMW's 3, 5 and 7 Series of luxury automobiles. I think our trucks will haul a little bit more than those wonderful BMW cars though. These investments in new products will contribute to the company's long-term growth.

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