Preston R. Feight
Chief Executive Officer & Director at PACCAR
Good morning. Harrie Schippers, Michael Barkley and I will update you on our first quarter results and business highlights. I truly appreciate PACCAR's outstanding employees around the world who continue to delivery excellent results and the highest quality trucks and transportation solutions.
PACCAR achieved record revenues and net income in the second quarter. PACCAR's revenue increased 23% to $7.160 dollars. Net income increased 45% to $720 million. PACCAR Parts second quarter revenue has increased by 18% to a record $1.43 billion. PACCAR Parts pretax profits were record $353 million, 32% higher than the same period last year.
Truck parts and other gross margins expanded to 14.4% in the second quarter compared with 13.5% in the second quarter of last year. PACCAR's increased vehicle production, new line of premium trucks and strong aftermarket parts business drove the higher gross margins.
PACCAR Financial had an excellent quarter, increasing year-over-year pretax income by 36% to $144 million due to its high quality portfolio and strong used truck results.
PACCAR is an industry leader in diesel and zero emissions powertrains, autonomous trucks and next generation connected services. PACCAR's best-in-class new trucks, it's new clean diesel and electric powertrain lineup and its ongoing research and development programs provide our customers with the right products and technology to help them optimize their operations. The entire PACCAR team has done an excellent job of working with our suppliers to manage supply base shortages and we have been able to gradually increase daily truck production.
In the U.S. economy, unemployment remains low. GDP is estimated to grow and industrial production is projected to expand. Based on this favorable operating environment, we estimate the U.S. and Canadian Class 8 market to be in the range of 260,000 to 290,000 trucks.
The European and U.K. economies are also growing with eurozone unemployment at low levels. The 2022 European truck market is expected to be in the range of 272,000 trucks. Looking at PACCAR's operating environment, our new generation of trucks in Europe and North America are providing our customers the benefit of owning the most desirable and most efficient trucks in the industry.
Freight tonnage remains at great levels. We're sold out for the year and the first quarter is beginning to fill in nicely. With fleet age up and truck utilization high, we anticipate continued strong demand for PACCAR Parts, trucks, and Financial Services.
Thank you. Harrie Schippers will now provide an update on PACCAR Parts, PACCAR Financial Services and other business highlights. Harrie?