Detroit Diesel braces for a slowing market
DETROIT, Mich. – Detroit Diesel is projecting that truck production will drop 10 to 15 per cent this year, and the company is already preparing for a drop in the first quarter.
But despite that news, the company is celebrating its record earnings in 1999.
Detroit Diesel Corp. made US $49.2 million in net income last year, marking an increase of 21 per cent over 1998 (before a special charge).
The earnings also represent an increase of 23 per cent over the company’s previous record earnings of $40.1 million in 1995.
Total revenues of $2.4 billion in 1999 also marked an all-time record.
Said president and CEO Charles G. (Chip) McClure, “For the year 2000, our objective is to build on the strong fundamentals for growth in our service parts and remanufactured products operations, and to continue to implement our cost reduction plans”.
Revenues in the on-highway business were up 11 per cent to $388 million in the fourth quarter, when compared to fourth quarter 1998.
Total 1999 revenues increased 15 per cent to a record $1.5 billion compared to 1998.
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