By Sarfaraz A. Khan. Research Asst. Adnan Mushtaq
The latest truck order numbers released by ACT Research show continued strength in the North American market, which was highlighted by Paccar (NASDAQ:PCAR), the second largest North American heavy-duty truck manufacturer when the company released its fourth quarter results last week.
In January, the Class 8 truck orders for North America climbed by 2.4% year-over-year and dropped by 19.7% from the previous month to 35,400. Credit Suisse's analyst Jamie Cook wrote in a research report emailed to me that the numbers were largely in-line with expectations. Once again, the growth was due in large part to improving economy and strong carrier profitability. Cook is expecting similar numbers for February in the mid-30,000 range, albeit February is usually around 4% weaker than January due to the seasonal impact.
Paccar has recently reported 18% year-over-year increase in net income to $394.3 million, or $1.11 a share on the back of 11% increase in revenues to $5.12 billion. Excluding the positive impact from taxes, the fourth quarter earnings were $1.09 a share.
Paccar installed its MX-13 engine, which the company launched in mid-2010, in 37% of its Kenworth and Peterbilt heavy duty trucks. The gaining popularity of this engine could be bad news for Cummins (NYSE:CMI), the largest diesel engine manufacturer and leading supplier of engines to almost every … read full article at Seeking Alpha.