BELLEVILLE, Wash. -- Paccar Inc., the world's third-largest truckmaker, said fourth-quarter earnings rose a better-than-expected 41 percent on record demand for heavy-duty trucks.
The maker of Kenworth and Peterbilt trucks said profit from operations rose to $162.4 million, or $2.07 a share, from $114.9 million, or $1.46, a year earlier. Paccar was expected to earn $1.93 a share, the average estimate of analysts surveyed by First Call/Thomson Financial, and $2.06 by EarningsWhispers.com. Sales rose 5 percent to $2.2 billion from $2.1 billion.The improved earnings come amid concern about a slowing of North American orders for heavy- and medium-duty trucks, though the backlog remains about seven to eight months. Truck production is running at a 275,000-unit annual pace, down from last year's record 316,000. The previous record was 224,000 in 1998.
Paccar "had great numbers all the way around," said John Rogers, an analyst at D.A. Davidson & Co. in Portland, Oregon, who rates the company an "outperform." He also said he was encouraged that the company plans to buy back 2 million shares of its stock this year.
In the latest quarter, Paccar, which is based in Bellevue, Washington, had a gain of $17.5 million, or 21 cents a share, from the sale of its retail auto-parts business to CSK Auto Inc. for $143.2 million. That resulted in net income of $179.9 million, or $2.28.
In 1999, Paccar's profit from operations was $566.1 million, or $7.20 a share. A year earlier, the company had net income of $416.8 million, or $5.30.