Paccar Truck Sales, Profit Plunge

BELLEVUE, Wash. (AP) -- Truck maker Paccar Inc. on Tuesday reported its second-quarter profit tumbled 92 percent as the weak economy hurt freight shipments and truck sales.

Earnings for the quarter ended June 30 fell to $26.5 million, or 7 cents per share, from $313.5 million, or 86 cents per share, in the same quarter last year.

Revenue dropped 58 percent to $1.6 billion from $3.78 billion.

Wall Street analysts polled by Thomson Reuters expected profit of 4 cents per share on $1.71 billion in sales.

The company attributed the decline to falling truck purchases and freight activity during the quarter. In a statement, Chairman and CEO Mark Pigott said lower margins, plant idlings and lower build rates hurt quarterly results as well.

"The challenging market conditions are continuing as we enter the second half of 2009," Pigott said. "Paccar has reduced operating expenses, capital expenditures and dividends to proactively position its business with current market conditions."

Earlier this month, the company halved its quarterly dividend to 9 cents.

More in Supply Chain