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The Bellevue, Washington-based company earned $13.0 million, or $0.04 per share, for the third quarter, a sharp decline from earnings of $299.0 million, or $0.82 per share, in the third quarter of last year. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.
Results of the latest period includes a one-time net benefit of $9.0 million related to the permanent closure of the company's Peterbilt facility in Madison, Tennessee. This pretax benefit includes plant closure costs of $4.2 million, offset by an $18.3 million curtailment gain on post-retirement healthcare plans.
Net sales and revenues for the quarter were $1.759 billion, down from $3.682 billion in the year ago quarter. Revenues from Financial Services dropped to $241.7 million from $322.8 million. Analysts had a consensus revenue estimate of $1.78 billion for the quarter. Aftermarket parts revenues were $477.7 million in the just concluded period. Geographically, revenue from United States and Canada declined to $1.039 billion from $1.363 billion. Europe generated $646.7 million in third-quarter revenues, compared to $2.001 billion last year.
Credit-loss provisions at the finance unit dropped to $26.6 million from last year's $34.2 million.
Among others in the industry, Daimler AG (DAI | Quote | Chart | News | PowerRating) said today that its third-quarter net profit dipped to EUR 56 million or EUR 0.04 per share from EUR 213 million or EUR 0.21 per share in the prior year period. Revenue for the quarter declined 21% to EUR 19.31 billion from EUR 24.47 billion in the comparable period.
Another peer, Navistar International Corp. (NAV | Quote | Chart | News | PowerRating), last month reported a third quarter loss, hurt by continuing weakness in truck market and higher provision for income tax expenses. At the same time, the company lowered its full year earnings guidance. The company reported a net loss for the third quarter of $12 million or $0.16 per share, compared to net income of $331 million or $4.47 per share for the year-ago quarter. Net sales and revenues for the third quarter fell 36.5% to $2.51 billion from $3.95 billion in the same quarter last year.
For the second quarter, Paccar posted net income of $26.5 million or $0.07 per share, a plunge from $313.5 million or $0.86 per share reported in the corresponding period a year ago. Net sales and financial services revenues for the quarter declined to $1.85 billion from $4.11 billion in the prior year.
For the first three quarters of the fiscal, net income plunged to $65.8 million, or $0.18 per share, from $904.8 million, or $2.47 per share, in the previous year. In Truck and Other, net sales and revenues declined to $5.091 billion from $11.085 billion. Revenue from Financial Services decreased to $740.0 million from $970.7 million reported in the year-ago quarter.
Looking ahead, the company, which makes Kenworth, Peterbilt and DAF trucks, said DAF's estimate for 2009 industry sales in the above 15-tonne truck market in Europe is 170,000-180,000 units, reflecting ongoing challenging economic conditions throughout Europe. Economic recovery in Europe is lagging North America with truck sales in 2010 anticipated to be in a range of 150,000-180,000 units, similar to industry sales in 1992, the company noted.
Class 8 industry retail sales in the U.S. and Canada are expected to be in the range of 100,000-110,000 vehicles in 2009, reflecting continued economic weakness, particularly in lower housing starts and auto production. The company expects Industry retail sales in 2010 to improve slightly to a range of 110,000-140,000 units, due to the aging of the fleet and general economic growth.
PCAR is currently trading at $37.30, down $1.95 or 4.97%, on 1.11 million shares.
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