BELLEVUE, Wash. -- PACCAR earned $26.5 million (7 cents per diluted share) for the second quarter of 2009 compared to $313.5 million (86 cents per diluted share) earned in the second quarter last year. During the second quarter, PACCAR discontinued certain subsidies for post-retirement health care plans and recorded a one-time benefit of $30 million ($47.7 million pretax). Second quarter net sales and financial services revenues were $1.85 billion compared to $4.11 billion in 2008. Net sales and financial services revenues for the first six months of 2009 were $3.83 billion compared to $8.05 billion last year. For the first six months of 2009, PACCAR reported net income of $52.8 million (14 cents per diluted share) compared to $605.8 million ($1.65 per diluted share) in 2008.

“PACCAR reported lower revenues and net income for the second quarter of 2009,” said Mark Pigott, chairman and chief executive officer. “These results reflect the impact of a recessionary economy on freight shipments and truck purchases worldwide. I am very proud of our 16,000 employees who have delivered good performance to our shareholders and customers in today’s very challenging business conditions. PACCAR’s strengths continue to be exceptional quality products and services, geographic diversification and solid aftermarket revenues and financial services income.

“PACCAR’s strong balance sheet, including $1.96 billion in manufacturing cash and marketable securities, and positive operating cash flow have enabled ongoing investments which enhance operating efficiency and the development of innovative new products,” added Pigott. “PACCAR’s second quarter net income benefited from a one-time pretax gain of $47.7 million, which offset an operating loss from its truck segment of $36.5 million. In today’s difficult economy, it is a significant accomplishment to generate quarterly net income in automotive/industrial businesses.

Pigott added, “The recession continues to affect our business in North America and Europe as truck markets remain weak. Second quarter 2009 financial results were negatively impacted by lower gross margins, temporary plant shutdowns and reduced build rates. The challenging market conditions are continuing as we enter the second half of 2009. PACCAR has reduced operating expenses, capital expenditures and dividends to proactively position its business with current market conditions.”