Paccar 1Q Profit Drops 91 Percent

BELLEVUE, Wash. (AP) — Commercial truck maker Paccar Inc. said Tuesday its first-quarter profit tumbled 91 percent, citing the continued effects of the slow economy on the global shipping industry.

The company's shares fell 16 cents to $34 in premarket trading.

Paccar earned $26.3 million, or 7 cents per share, compared with $292.3 million, or 79 cents per share, for the same quarter last year. Sales plunged 52 percent to $1.73 billion from $3.62 billion.

Analysts polled by Thomson Reuters expected a profit of 5 cents per share on $1.95 billion in revenue.

Paccar said its results were hurt by lower build rates, temporary plant shutdowns and lower gross margins. In addition, the Bellevue, Wash., company said the tough market conditions have continued into the second quarter.

Paccar said it expects U.S. and Canadian sales of the largest commercial trucks to total between 100,000 and 130,000 vehicles this year, citing expectations of a continued weak economy.