Paccar results close to forecasts
A more sluggish market for heavy-duty trucks slows sales at the Bellevue company, as it also reduces its industrywide forecast for the year.
Seattle Times business reporter
In an earnings season that’s been filled with disappointing corporate results, Paccar stood out just by more or less meeting expectations.
Shares in the Bellevue-based truck maker jumped 8.1 percent, or $3.21, to $42.78 Thursday after it reported a third-quarter profit of $233.6 million, or 66 cents a share. Analysts had on average expected a profit of 65 cents a share, according to FactSet Research.
Even though sales of trucks and parts fell a bit short of estimates — $3.55 billion, versus the FactSet consensus estimate of $3.57 billion — and Paccar’s revenue and profit both have fallen for three quarters in a row, the company was rewarded for not reporting yet another downside surprise.
Paccar’s net profit was down 21.4 percent from the second quarter and 17 percent from the third quarter of 2011. Total revenue, including the company’s financial-services unit, was $3.82 billion, 14.3 percent below the second quarter and off 10.3 percent from the year-earlier period.
In a conference call with analysts, Paccar Chief Executive Mark Pigott said the company delivered 31,200 trucks in the third quarter, about 17 percent lower than the second quarter. But year-to-date truck deliveries are up 12 percent from the same period in 2011, he said.
“Customers are focused primarily on truck replacement, as they navigate the uncertain global economy,” Pigott said.
He added that the company could deliver 1 to 2 percent more trucks in the fourth quarter than in the third, “recognizing that in Europe we have our traditional summer shutdown.”
Paccar said it now expects industrywide sales of Class 8 trucks in North America to be between 210,000 and 220,000 vehicles this year.
Reflecting the slowing market, Paccar has twice trimmed the high end of its 2012 estimate: It was 240,000 in April and 230,000 in July.
The company also narrowed its projection for European heavy-duty truck sales, to 215,000 to 225,000 units, from 210,000 to 230,000 in July.
Paccar also issued its first estimates for 2013 industrywide truck sales: 210,000 to 240,000 vehicles in North America, 210,000 to 250,000 in Europe.
Paccar makes trucks under the Kenworth and Peterbilt nameplates at its plant in Renton, and under the DAF nameplate in Europe. It expects to begin producing DAF trucks in Brazil in late 2013.
Drew DeSilver: 206-464-3145 or firstname.lastname@example.org