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May 1, 2008updated 12 Apr 2017 4:45pm

Pre-tax income up at PACCAR FS

PACCAR Financial Services (PFS), a unit of PACCAR, the manufacturer of premium commercial vehicles, increased pre-tax income by 2.6 per cent to $67.3m (£33.8m) in the first quarter compared with the previous year PFS margins improved with growth in its portfolio but this was partially offset by an increase in the provision for credit losses reflecting higher repossessions in its North American markets

By Maryann Tan

PACCAR Financial Services (PFS), a unit of PACCAR, the manufacturer of premium commercial vehicles, increased pre-tax income by 2.6 per cent to $67.3m (£33.8m) in the first quarter compared with the previous year. 

First quarter revenues were $317.4m (£160m) compared with $264m (£133m) in the same quarter of 2007. 

PFS’ margins improved with growth in its portfolio but this was partially offset by an increase in the provision for credit losses reflecting higher repossessions in its North American markets. Credit losses also increased in the quarter to $15.3m (£7.7m) versus $9.4m (£4.7m) in the fourth quarter. 

Finance margin improved due to portfolio growth, but was partially offset by an increase in the provision for credit losses reflecting higher repossessions in the US and Canada. Credit losses increased in the quarter to $15.3m (£7.7m) versus $9.4m (£4.7m) in the fourth quarter. 

The company said that the resale value of PACCAR products – marketed under the nameplates of Kenworth, Peterbilt and DAF – typically generates a 15 to 25 per cent premium compared to its competition. PFS supports sales of PACCAR trucks in 18 countries with its portfolio of finance, lease and insurance products.  

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