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 increased revenues and net income for the second quarter of 2012 compared with the second quarter last year. PACCAR's second quarter sales and Financial Services revenue were $4.46 billion, up 13% compared to $3.96 billion in the second quarter of last year. Quarterly net income increased to $297 million, a 24% increase versus the $240 million earned a year ago. Increased truck deliveries in North and South America and a growing Financial Services business contributed to PACCAR's increased profits. For the first half, revenues were a record $9.2 billion, and net income was $624 million. In addition, PACCAR's dividend increased 60% compared to a year ago. I'm very proud of our 23,000 employees who have delivered industry-leading products and services to our customers worldwide. Our customers in North America are benefiting from increased freight tonnage, improved fleet utilization rates and lower fuel prices. In Europe, freight transportation on German highways continues at good levels, comparable to last year. European transporters have also benefited from lower fuel prices in recent months. Due to the uncertain global economy, some of our customers are not expanding their fleets at this time and are focused primarily on truck replacement. PACCAR delivered 37,700 trucks during the second quarter, about 10% higher than the same period last year, but down for 5% from the first quarter of 2012. Peterbilt, Kenworth and DAF grew their market share as customers recognize the benefits of our high-quality and efficient trucks. PACCAR's retail share of the U.S. and Canadian Class 8 truck market was 29.9% for the first half.
DAF's share of truck registrations in Europe above 16-tonne reached 16%. Kenworth and DAF truck deliveries in the Andean region of South America, that is the region outside of Mercosur, increased by about 75% in the first half of this year compared to the same period last year.Looking forward, PACCAR expects to deliver about 10% fewer trucks in the third quarter compared to the second quarter due to the weak economic growth in the United States, coupled with the ongoing uncertainty in the Eurozone. Looking at the broader market, U.S. and Canadian Class 8 industry retail sales are estimated to improve this year to a range of 210,000 to 230,000 units, up 12% at the midpoint from 197,000 units last year. In Europe, the greater than 16-tonne truck market is also anticipated to be in the range of 210,000 to 230,000 units, down slightly from the 241,000 units last year. PACCAR's business initiatives worldwide are progressing well. Capital spending is estimated to be $450 million to $550 million, with research and development at $275 million to $300 million. Construction of our new DAF assembly factory in Ponta Grossa, Brazil, is progressing and we plan to be building DAF Trucks in Brazil next year. We're also very pleased with the excellent customer response to the launch of the new Kenworth T680 and the Peterbilt Model 579, both very exciting trucks. During the second quarter, Kenworth and Peterbilt began limited production of these exciting new models, and it will gradually increase their production in the third and fourth quarters. PACCAR is enhancing its network of 15 parts distribution centers. We're building a new 280,000 square foot distribution center in Eindhoven, the Netherlands, and our distribution centers in Madrid, Spain and Lancaster, Pennsylvania are increasing their capacity to meet the demands of our customers and dealers.
PACCAR Financial Services revenue were $266 million in the second quarter compared to $258 million last year. PACCAR Financials second quarter pre-tax income jumped to a quarterly record $77 million compared to $57 million earned in the second quarter of last year. The excellent results benefited from growth in portfolio balances and a lower provision for credit losses. PACCAR Financial, with its strong A+ credit rating, has excellent access to the commercial paper and medium-term note markets. In the second quarter, PACCAR Financial sold over $900 million in 2- and 3-year notes in the U.S. and Europe. PACCAR also completed the renewal of its $2 billion credit line.Read the rest of this transcript for free on seekingalpha.com