Paccar beats with 3Q results, but stock falls

Paccar beats 3Q estimates but stock falls after tepid 2014 volume outlook

Associated Press

BELLEVUE, Wash. (AP) -- NEWS: Paccar Inc., which makes Kenworth and Peterbilt trucks, reported third-quarter net income that beat analyst expectations as deliveries and aftermarket parts sales rose.

DETAILS: Pretax profits from truck sales jumped 42 percent to $242.5 million. Profits also rose for parts and financial services. The company posted revenue gains in its two main regions — the U.S. and Canada, and Europe.

NUMBERS: Net income rose 32 percent to $309.4 million, or 87 cents per share, for the quarter that ended Sept. 30. During the same period last year it earned $233.6 million, or 66 cents per share. Revenue rose 13 percent to $4.3 billion from $3.8 billion a year earlier. Analysts surveyed by FactSet had been expecting a profit of 85 cents per share on revenue of $4.1 billion.

FUTURE: Paccar predicted sales of the large trucks for tractor-trailer rigs will be 205,000 to 215,000 vehicles in the U.S. and Canada this year. Demand is being driven by replacement of older trucks and an improving housing sector, the company said. It predicted sales of 210,000 to 240,000 trucks next year if there's some growth in the overall fleet size "reflecting modest overall economic growth." The low end of the 2014 range raised the possibility that the number of trucks sold could fall slightly from this year's level.

STOCK: Down 61 cents, of 1.1 percent, to $53.35 in midday trading. Its shares are still up 29 percent this year.

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