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 record quarterly revenues and strong net income for the third quarter of 2011. PACCAR's third quarter sales and financial services revenue were $4.26 billion compared to $2.54 billion in the third quarter of 2010, a 68% increase. Quarterly net income increased to $282 million, more than double the $120 million earned a year ago and our best quarterly profit since the third quarter of 2008. The lower tax rate in the third quarter reflects the benefits of the recently enacted research and innovation tax incentives in the Netherlands. I'm very proud of our 23,000 employees who have delivered industry-leading products and services to our customers worldwide. Increased truck deliveries, higher aftermarket sales and a growing financial services business worldwide contributed to PACCAR's increased profits. Our customers in North America are benefiting from increased freight tonnage and higher freight rates, which is generating good profitability for their companies and enabling them to replace their aging fleets. For the first 9 months of this year, Peterbilt and Kenworth have achieved a record Class 8 market share of 27.7%. The performance of our suppliers improved significantly in the third quarter as they invested in production capacity to meet increased market demand. Turning to Europe. Economic uncertainties in recent months in the Eurozone have resulted in lower industry truck orders. You may have read, I'm sure you have, that a number of our competitors have taken actions to reduce their build rates. DAF is taking similar action and will reduce build rates 5% to 10% in December. The good news is that Europe's 2011 industry registrations are up 30% compared to last year, and DAF has achieved a year-to-date 15.2% share of the above 15-tonne market.
All of PACCAR's factory production worldwide slots are full for the year. PACCAR delivered over 35,000 trucks during the third quarter, 82% more than the same period last year. I'm really proud of our production, engineering and material purchasing teams.We've improved market pricing and productivity, which has generated higher quarterly truck gross margins of 8.4% in the third quarter compared to 5.4% a year ago, and we've also improved return on revenue percentages. Looking ahead, PACCAR estimates delivering approximately 5% to 10% more trucks in the fourth quarter compared to the third quarter. As we discussed in our July call, U.S. and Canadian industry retail truck sales are estimated to improve this year to a range of 185,000 to 200,000 units versus 126,000 last year. Industry retail truck sales for the U.S. and Canada for 2012 are estimated at 205,000 to 230,000 units, assuming ongoing replacement of the aging truck fleet and some economic growth. We estimate that Europe's greater than 15-tonne truck market will be between 235,000 and 245,000 units this year versus 183,000 last year. It's anticipated that the European industry truck sales in 2012 will be in the range of 225,000 to 250,000 units. As we highlighted in our press release, PACCAR continues to make significant investments to expand our geographical footprint and build on our technology and production efficiency leadership. PACCAR's innovative application of information technology earned the company the #1 technology position in InformationWeek magazine's 2011 Top 500 company listing. Leyland was also awarded the prestigious Shingo Bronze Medallion, which recognizes world-class organizations for creating a culture of continuous improvement. It really sums up PACCAR's approach to our business. PACCAR's global business initiatives are progressing well. We expect to begin construction on the new DAF assembly facility in Ponta Grossa, Brazil in the next month or so and plan on building trucks in Brazil in 2013. Read the rest of this transcript for free on seekingalpha.com