Tags: paccar | profit | slowdown | looming

Paccar Posts Higher Profit, Sees Slowdown Looming

Tuesday, 24 July 2012 01:59 PM EDT

U.S. heavy truck maker Paccar Inc reported a 24 percent rise in profit that represented a slowdown from torrid growth over the past few quarters, and warned weak U.S. and European economies could hurt truck sales for the rest of the year.

The maker of Kenworth and Peterbilt trucks said on Tuesday second-quarter earnings increased to $297.2 million, or 83 cents per share, from $239.7 million, or 65 cents per share, a year earlier.

Profit was 1 penny per share above analysts' average estimate of 82 cents, according to Thomson Reuters I/B/E/S.

Revenue at its truck business rose 13.2 percent to $4.19 billion.

"The weak economic growth in the United States, coupled with the ongoing uncertainty in the eurozone, could dampen truck orders for the remainder of 2012," said Chief Executive Mark Pigott in a statement.

The Bellevue, Washington-based company, which last year more than doubled its profit, warned investors earlier this month that U.S. and Canadian orders of tractor-trailers had slowed down this year in the face of uncertain economies. Engine maker Cummins Inc issued a similar warning.

Cummins is due to report quarterly results next week.

Paccar's peers also include Navistar International Corp and Oshkosh Truck Corp.

© 2025 Thomson/Reuters. All rights reserved.


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Tuesday, 24 July 2012 01:59 PM
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