I've been watching this as an informal indicator since the fall:
Paccar first-quarter net off 71 percent
(UPDATE: Adds stock price, details throughout.)
BELLEVUE, Wash., April 24 (Reuters) - PACCAR Inc. (NasdaqNM:PCAR - news), the maker of
Kenworth, Peterbilt and other trucks, said on Tuesday that its first-quarter earnings fell 71 percent as the
slowing U.S. economy and an oversupply of used vehicles hurt sales.
The Bellevue, Wash.-based company reported net income of $44.3 million, or 58 cents a share,
compared with $154.9 million, or $1.98 a share, in the first quarter a year ago. Sales dropped 34 percent
to $1.5 billion from $2.3 billion.
Results were near the high end of analyst estimates. PACCAR had been expected to earn 25 cents to 60
cents a share, with an average of 47 cents, according to research firm Thomson Financial/First Call.
The company's shares, which have outperformed the Standard & Poor's 500 index by about 23 percent
over the past 12 months, gained $1.11 in early trading on the New York Stock Exchange to $48.59.
PACCAR said it has reduced production at its North American facilities, with U.S. and Canadian
production of its Class 8 heavy trucks falling 20 percent from fourth-quarter levels.
It said industry conditions, which include higher fuel and insurance costs as well reduced freight tonnage,
have not been this bad since 1990 to 1991. |
