Paccar 4Q Net Up 93% On Surging Truck Sales; Results Top Views


    Paccar Inc.'s (PCAR) fourth-quarter earnings surged 93% as the maker of Kenworth and Peterbilt heavy-duty commercial trucks reported an increase in truck sales and growth in its financial services arm.

    Shares recently climbed 5.4% to $46.55 premarket as the results topped Wall Street estimates and have risen 18% since the start of the year.

    Paccar has benefited from a rebound in demand for its trucks in the U.S., seeing its third-quarter earnings more than double last year. Reflecting the company's confidence in its growth prospects, it recently approved a $300 million share buyback program and a special dividend of 70 cents a share.

    The company has said it started construction on an assembly plant for DAF-brand trucks in Ponta Grossa, Brazil, and opened a new technical center in Pune, India, part of an effort to speed the company's global growth. But Paccar has said it would scale back truck production in Europe as turbulent economic conditions take a toll on demand.

    Profit rose to $327.7 million, or 91 cents a share, from $169.8 million, or 46 cents a share, a year earlier. Combined truck net sales and financial-services revenue was $4.85 billion, up 58%.

    Analysts polled by Thomson Reuters most recently forecast earnings of 79 cents a share on revenue of $4.24 billion.

    Truck and other sales--which make up the bulk of Paccar's business--were up 63%. Its financial services arm continued to benefit from lower provisions for loan losses and saw revenue grow 9.2%.
