Paccar's stock sinks on disappointing third-quarter results
Paccar's third-quarter profit fell 1.1 percent, missing analysts' expectations, and the Bellevue truck maker said declining demand for trucks will hurt results in the fourth quarter and into next year.
Paccar reported today that its third-quarter earnings fell, missing Wall Street expectations, and that declining demand for trucks will hurt results in the fourth quarter and into next year.
The news pushed Bellevue-based Paccar's stock down $3.15, or 10.5 percent, to $26.82 at the close.
Paccar said it earned $299.0 million, or 82 cents a share, down 1.1 percent from $302.3 million, or 81 cents a share, a year earlier. Analysts expected it to earn 87 cents a share, according to a survey by Thomson Reuters.
Sales, including revenue from financial services, were $4 billion, above analysts' forecast of $3.85 billion and up 6.5 percent from year-ago sales of $3.76 billion.
Chairman and Chief Executive Mark C. Pigott said the company was seeing lower demand for trucks in Europe, Mexico and Australia and continued softness in the United States and Canada, "which will reduce financial results in the fourth quarter of 2008 and into 2009."
Pigott said the company was aligning costs with the slower demand, as it has in previous downturns.
Officials said after years of strong growth, European truck markets were slowing and the company will reduce its production during October.
In the United States and Canada, the company said truck sales would improve slightly in the second half of next year.
The company said it was seeing good demand from customers in Latin America and the Middle East, especially for off-highway and oil-well servicing vehicles.
Paccar makes trucks under the Kenworth, Peterbilt and DAF names and sells financial services and truck parts.
Copyright © 2008 The Seattle Times Company
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