PACCAR beats quarterly profit, revenue estimates on demand for newer truck models

Cummins

23/01/2024 14:14

Jan 23 (Reuters) - PACCAR Inc  PCAR.O  beat estimates for fourth-quarter
profit and revenue estimates on Tuesday, on sustained demand for its
fuel-efficient truck models.  
    Shares of the U.S. truck maker were up 1.5% in premarket trading.
    The company, which makes trucks under the Kenworth, Peterbilt and DAF brand
names, saw a growing demand for its hydrogen fuel cell and battery-powered
vehicles as more consumers shifted to electric vehicles and emission-free
engines. 
    PACCAR's order book remains strong as demand for industrial equipment in the
U.S. has gotten a boost from the Biden administration's $1.2 trillion push to
improve transportation and infrastructure.
    Cummins  CMI.N , Daimler and PACCAR announced their joint venture last year
to ramp up advanced battery cell manufacturing in the U.S. Under the
partnership, the 21-gigawatt-hour factory in Mississippi is expected to start
production in 2027.
    PACCAR expects industry retail sales in the U.S. and Canada for its
heavy-duty Class 8 trucks to be in a range of 260,000 to 300,000 trucks in 2024.
    "Infrastructure spending and the replacement of older trucks are driving
demand for Kenworth and Peterbilt trucks," said PACCAR's executive vice
president Darrin Siver.
    The Bellevue, Washington-based company reported a profit of $2.70 per share
for the quarter ended December 31, beating LSEG estimates of $2.22 per share.
    The company's quarterly revenue was $9.08 billion, compared with analysts'
average estimate of $8.35 billion, according to LSEG data.

 (Reporting by Raechel Thankam Job; Editing by Tasim Zahid and Shweta Agarwal)
 ((RaechelThankam.Job@thomsonreuters.com;))