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Mack Trucks delivered a mixed load of numbers in its first quarter, dragged down by lower output totals but propelled forward by a surge in orders logged during the first three months of 2017.
First, the bad: Mack delivered 3,925 trucks worldwide during the first quarter, a 24% decrease from 5,176 in the year-earlier period, according to a report released April 25 by Mack’s parent company, Sweden-based Volvo Group.
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While deliveries declined as expected, both the Mack and Volvo truck brands experienced a sizable increase in net order intake in North America, driven by “higher activity within the construction segment and a somewhat improved freight environment combined with low dealer inventories,” according to a Volvo report.
Mack received 5,703 orders in North America during the first quarter, up 39% from 4,117 a year earlier. Meanwhile, Volvo received 5,596 orders in the quarter, up 19% from 4,687 in the year-earlier period.
In addition, Volvo wrote in the report, Mack and Volvo both gained market share in North America during the quarter. The Volvo Trucks brand now has 9.4% of the North American market, while Mack reached 8.9%.
Mack employs about 1,480 people at its Lehigh Valley operations, which includes its 1-million-square-foot Lower Macungie Township facility, where all Mack trucks built for the North American market and export are assembled.
While heavy-duty truck orders ticked up in North America, Volvo noted that dealer inventories for used longhaul trucks remain elevated, which “continues to dampen demand for new trucks in this segment despite indications of an improving freight environment.”
Improving freight fundamentals and continued strength in orders were two factors analysts from Stifel considered when they, in March, increased the firm’s heavy-duty truck production outlook for 2017 and 2018.
| By Jon Harris The Morning Call (Allentown, Pa.)
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