Paccar 2nd-qtr profit falls 2 pct as sales slip

Paccar posts 2 pct dip in 2nd-quarter net income on lower truck sales, results top Street view

Associated Press

BELLEVUE, Wash. (AP) -- Paccar Inc. said Tuesday its second-quarter net income fell 2 percent, hurt by lower truck demand, but results still beat Wall Street predictions and the stock hit a 6-year high.

The Bellevue, Wash., maker of Kenworth and Peterbilt trucks earned $291.6 million, or 82 cents per share, in the three months ended June 30. That was down from $297.2 million, or 83 cents per share, in the same quarter of 2012.

Total sales and revenue fell 4 percent to $4.3 billion from $4.46 billion.

Analysts, on average, expected a profit of 75 cents per 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 currently 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 growth in automotive production and construction.

Paccar shares rose 10 cents to $57.91 in morning trading, after peaking at $60 shortly after the market opened, the highest point the stock has reached since September 2007.

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