Paccar price hikes propel Q2 profit surge

Paccar charged 15% more for a new truck than a year ago, a driving force behind a surge in second-quarter profits.

But inflation-driven pricing is only part of the story of a record 70% increase in Q2 profitability.

The Bellevue, Washington-based parent of Kenworth, Peterbilt and DAF Trucks charged customers substantially more for new equipment than the roughly 9% increase it paid to build a truck.

“We expect [gross profit] margins of 18-19% in Q3. That’s a testament of how we see the price/cost analysis going,” CEO Preston Feight told analysts on the company’s earnings call Tuesday.