BELLEVUE, Wash. (April 29) — Strong truck demand and improved margins, particularly in the U.S., contributed to record first quarter earnings at Paccar Inc., maker of Kenworth, Peterbilt, Leyland, Foden, and DAF trucks. However, chairman Mark Pigott expects the robust market for heavy trucks to soften, especially in Europe.

First quarter 1999 sales increased to $2.1 billion, 18% higher than the $1.8 billion recorded a year ago. Net income of $119.5 million or $1.52 per share climbed 19% compared to the $100.4 million or $1.28 per share earned in the first quarter of 1998.

“The truck market in the U.S. continues to be strong with industry backlogs at approximately 12 months,” Pigott adding that Paccar is in the process of boosting truck build-rates at selected factories and adding new production capacity with the opening of its factory at Ste. Therese, Que., this summer.

“As consolidation within the industry continues, PACCAR’s strong balance sheet and excellent financial returns enable us to make the necessary strategic investments to remain a solid growth company into the future,” Pigott said.

Paccar, with annual revenues of $7.6 billion, builds trucks and also provides financial services and distributes truck parts related to its principal business. In addition, the Bellevue, Washington-based company manufactures industrial winches and sells general automotive parts and accessories through its retail outlets.

Paccar shares are traded on the NASDAQ Exchange, symbol PCAR.