Truckmaker PACCAR misses margin estimate as costs weigh

PACCAR

22/10/2024 15:52

Oct 22 (Reuters) - PACCAR  PCAR.O  reported a gross
margin that fell short of its own expectations on higher costs,
sending the truckmaker's shares down 5.7% in morning trading on
Tuesday.
    The trucking industry has taken a hit from depressed freight
demand after the pandemic and has had to contend with rising
labor costs, like many other U.S. industries.
    PACCAR reported a gross margin of 16.6%, below the
expectation of 17% it had forecast in July. 
    While revenue from the trucks and parts segment fell 6.4%
compared to last year, the cost of goods fell only 3%. 
    "We would anticipate PCAR shares to come under pressure
today on weaker-than-expected 3Q gross margins," analysts from
Citi said. 
    The Bellevue, Washington-based company reported a profit of
$1.85 per share for the quarter ended Sept. 30, lower than $2.34
per share a year ago. 
    Revenue for the reported quarter was $8.24 billion, down
5.3% from $8.70 billion last year. 

 (Reporting by Raechel Thankam Job and Aishwarya Jain; Editing
by Pooja Desai)
 ((RaechelThankam.Job@thomsonreuters.com;))