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Paccar Says Earnings Tumble on Reduced Demand

The Associated Press

Bellevue, Wash. -- Truck maker Paccar (PCAR Quote) on Friday said its fourth-quarter income fell by more than half, citing reduced demand and temporary plant shutdowns.

Paccar said it earned $113.1 million, of 31 cents per share, for the quarter ended Dec. 31. That's down from $261.1 million, or 71 cents per share, in the same quarter last year.

Sales decreased 24% to $2.62 billion from $3.43 billion last year.

The company said its fourth-quarter results were stung by lower margins, lower build rates and temporary plant shutdowns. Paccar said it expects those challenges to continue into 2009, though it did not offer a more specific financial outlook for the year.

Analysts surveyed by Thomson Reuters expected the company to report earnings of 30 cents per share on $2.77 billion in sales, on average.

Its financial arm, Paccar Financial Services, reported pretax income of $45.4 million, down from $76.2 million in fourth quarter last year, amid credit losses due to more truck repossessions, the company said.

For the full year, Paccar said earnings fell 17% to $1.02 billion, or $2.78 per share, from $1.23 billion, or $3.29 per share, in 2007. Full-year sales fell 2% to $13.71 billion.

Shares of Paccar closed Thursday at $24.92. The stock has declined by more than half from a 52-week high of $53.81 set last May.