The financing arm of truck maker PACCAR reported lower business
and a higher number of repossessions for the second quarter of
the year, with a pre-tax income of $15.6 million (€10.8 million),
down from the $58.7 million earned in the second quarter of
2008.
PACCAR’s captive, which provides financing for Kenworth,
Peterbilt and DAF dealers and customers, had second quarter
revenues of $243.5 million compared to $330.5 million one year
before.
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Ron Armstrong, PACCAR senior vice president, commented:
“Declining asset balances, higher debt costs and lower used truck
prices are impacting finance margins.”
He said that repossessions recorded an increase particularly in
European markets, where PACCAR’s DAF division is based.
Similarly, the company said that credit losses improved in the
U.S. and Canada, offset by increased credit losses in Europe.
However, Armstrong added that the improved liquidity of the
global capital markets was starting to benefit the transportation
segment.
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By GlobalDataHe said: “PACCAR’s good access to short- and long-term capital
markets allows PACCAR Financial Services to profitably support the
sale of PACCAR trucks in 20 countries on three continents at a time
when many third-party lenders have exited the transportation
finance business.”
Antonio Fabrizio
