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.
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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.
