Paccar’s 2Q profit slips but still beats expectations
The Bellevue manufacturer’s net income declines nearly 2 percent as demand for trucks slows.
The Associated Press
Paccar said Tuesday its second-quarter profit fell 1.9 percent, hurt by lower truck demand, but results still beat Wall Street predictions.
The stock initially climbed, hitting a six-year high of $60. But those gains gradually eroded, and it closed the trading session down 56 cents, or 1 percent, at $57.25.
The Bellevue maker of Kenworth and Peterbilt trucks earned $291.6 million, or 82 cents a share, in the three months ended June 30. That was down from $297.2 million, or 83 cents a share, in the same quarter of 2012.
Total sales and revenue fell 3.5 percent, to $4.3 billion from $4.46 billion.
Analysts, on average, expected a profit of 75 cents a share on $4.19 billion in revenue, according to FactSet.
Truck sales dropped 6 percent to $3.27 billion, while revenue from parts and financial services both increased.
Paccar Executive Vice President Dan Sobic said truck demand is being driven by the need to replace aging vehicles and the improving housing market.
Sobic said he expects the truck market to benefit from economic growth in the second half of the year, especially in automotive production and construction.