PACCAR beats quarterly estimates on strong demand for trucks
Reuters
Published Jul 25, 2023 09:13AM ET
(Reuters) - PACCAR Inc (NASDAQ:PCAR) beat market estimates for second-quarter profit and sales, helped by strong demand for its trucks and aftermarket parts.
A strong freight market and a focus on bolstering logistics networks amid sustained e-commerce deliveries aided demand for long-haul trucks, boosting sales for companies such as PACCAR.
A global shortage of semiconductors and other crucial components has also compelled truckers to repair their ageing fleet, benefiting the company's aftermarket business.
"Our factory production schedules are full for the year," Darrin Siver, executive vice president at PACCAR, said in a statement on Tuesday.
The company, which designs and manufactures trucks under the brands Kenworth, Peterbilt and DAF, expects Class 8 truck industry retail sales in the U.S. and Canada to be in a range of 290,000-320,000 for the year.
Class 8 trucks refer to those that have a gross vehicle weight of more than 33,000 pounds and are used to move heavy freight.
The Bellevue, Washington-based company also raised its quarterly dividend to 27 cents from 25 cents.
PACCAR reported net income of $2.33 per share for the three months ended June 30, compared with analysts' average estimate of $2.18 per share, according to Refinitiv data.
Its revenue rose 24% to $8.88 billion. Analysts expected $8.23 billion.
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Written By: Reuters
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