Strong deliveries due to economic growth and strong freight demand in NA and Europe
“PACCAR delivered 41,600 trucks during the second quarter, an 8% increase versus the first quarter this year and slightly ahead of our expectations. The improvement reflects increased truck deliveries in North America and Europe due to economic growth and strong freight demand.”
European outlook continues to improve
The European economic and truck market outlook continues to improve. GDP growth expectations for this year are 2.4% in the UK, which is PACCAR’s strongest market in the region, with 1.5% GDP growth on the continent.
Freight transport activity on German highways is up 2.6% year-to-date through June compared to the same period last year and it’s at the highest level since the German toll system was launched in 2007.”
US Economic picture positive too
“The US economic picture remains positive with GDP forecast to grow 2.4% this year. The housing and automotive industries are bright spots in the economy and create a large amount of freight. Housing starts are projected to grow 11% this year to 1.1 million and the automotive industry is expected to deliver 16.9 million vehicles, near the record level of 17.3 million set in the year 2000.
US freight tonnage is at near record levels. We’ve raised our US and Canadian Class 8 truck industry retail sales estimate to a range of 270,000 to 290,000 units this year. The stronger market reflects expansion in industrial fleet capacity due to continued strong freight fundamentals.”
Not seeing any cancellations in the US
“Cancellations have been at a very low rate and vocational trucks are very active, lots of reasonable growth in housing construction, commercial construction. So it’s all been pretty steady.”
It’s a really good operating environment
“I think it’s a really good operating environment. I think we’re in a good position right now and obviously our teams in our factories do a great job of managing to the conditions in the marketplace and we expect that that will continue as we move forward of course this year and next.”
Lots of available capacity
“We have lots of capacity available in most of our factories to be able to produce trucks to meet customer demand. So it’s not a concern for us.”