UPDATE 1-Paccar profit slips as slowdown spreads
October 21st, 2008 | by admin |* Paccar reports 3rd-qtr profit of 82 cents a share
* Analysts expected 87 a share
* Company says slowdown spreads to Europe and beyond
* Finance arm hurt by rising credit losses, repossessions
CHICAGO, Oct 21 (Reuters) – Paccar Inc (PCAR.O: Quote, Profile, Research, Stock Buzz), the No. 2U.S. maker of heavy trucks, said on Tuesday that its quarterlyearnings slipped 1 percent as the slowdown that has plagued itin North America spread to Europe, Mexico and Australia.
The company, which makes trucks under the Kenworth,Peterbilt and DAF brand names, said its results were pulleddown, in part, by its in-house finance unit, where pretaxincome tumbled 38 percent amid rising credit losses and truckrepossessions in the U.S. and Canada.
“Some North American trucking companies are being impactedby the difficult credit markets, fuel pricing and the slowereconomy,” Ron Armstrong, senior vice president, said in astatement.
“European truck customers are also beginning to experiencea slowing European economy.”
Aad Goudriaan, head of Paccar’s DAF unit, said that 2009European industry truck sales were difficult to predict becauseof the “economic uncertainty,” but said they could fall as muchas 24 percent from this year’s rate of 340,000 units.