PACCAR's revenue falls on tepid demand for new trucks

April 28 - PACCAR ‌posted a ​decline ​in first-quarter revenue on Tuesday, weighed by soft demand for new trucks as ‌the industry struggles to emerge from a ⁠prolonged period of over-capacity.

The U.S. trucking industry showed early ‌signs of a revival ‌this year after nearly four years of recession, but higher fuel costs tied to the ​Middle East conflict have stalled the momentum.

PACCAR, which owns brands such as Kenworth, Peterbilt ⁠and DAF, reported 17,800 U.S. and Canada truck deliveries in the ​first quarter, down from 22,200 a year earlier. Revenue from sales of trucks ​fell 13.4% to $4.53 billion. Its ‌shares were down more than 1% in premarket trading.

Truck operator JB Hunt, ⁠which has a fleet of over 12,000 trucks, has been making cost reductions to boost efficiency amid ⁠the ongoing uncertainty.

Softer demand for new trucks, however, has ​kept older vehicles on the road longer, lifting sales in PACCAR's aftermarket parts business by 1.2% to $1.71 billion.

The ‌company posted a per-share profit of $1.15, up from 96 cents a year earlier.

Its ‌total quarterly revenue, including the financial services ⁠segment, was $6.78 billion, compared ‌with $7.44 billion a ​year earlier.

(Reporting by Apratim Sarkar and Aishwarya Jain in Bengaluru; Editing by Shilpi ‌Majumdar)

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