Paccar's earnings triple, firm notes pre-buy activity

| 10/23/2002

Paccar Inc. said Tuesday its quarterly earnings more than tripled, thanks to pre-buy demand that took place before Oct.1 this year when stricter federal emissions standards took effect.

However, the company said orders for the next two quarters could be "unfavorably impacted" as fleets evaluate trucks powered by post-Oct. 1 engines. The truckmaker reported third-quarter net income of $128.9 million compared with $39.4 million a year earlier. Sales rose to $2 billion from $1.5 billion.

Paccar, the parent company of Kenworth Truck Co. and Peterbilt Motors Co., said its North American production rates increased more than 60 percent in the quarter because fleets were skeptical about buying trucks with post-Oct. 1 engines.