) hit 52-week high of $51.14 on Mar 14. Shares of the company
started escalating after the release of its promising fourth
quarter results on Jan 31. Their previous 52-week high was
PACCAR is the third largest manufacturer of heavy-duty trucks
(with a capacity of more than 15 metric tons) in the world after
), and has substantial manufacturing exposure to light/medium
trucks (with a capacity of 6-15 metric tons). It has a market cap
of $17.9 billion.
The Zacks Rank #3 (Hold) company performed well in full year
2012. The company's earnings per share improved 9% to $3.12 from
$2.86 in 2011, beating the Zacks Consensus Estimate of $3.09.
PACCAR also generated the highest annual revenues of $17.05
billion in its history, which surpassed the Zacks Consensus
Estimate of $15.96 billion. Thanks to the company's superior
products and services, geographic diversification, impressive
aftermarket parts business and commendable performance of
Industry sales in the above 16-tonnes in Western and Central
Europe were 222,000 units in 2012. The company expects industry
sales in the same market between 210,000 units and 250,000 units
in 2013 as customers are expected to purchase Euro 5 vehicles
ahead of the introduction of the Euro 6 emission requirement in
Meanwhile, PACCAR achieved a record Class 8 retail market share
of 28.9% in the U.S. and Canada as customers benefited from low
operating costs of Kenworth and Peterbilt vehicles. Class 8
industry retail sales in the U.S. and Canada improved 14.2% to
225,000 units in 2012 from 197,000 in 2011. The company expects
industry retail sales between 210,000 vehicles and 240,000
vehicles in 2013, driven by ongoing replacement of the aging
truck population and overall economic growth.
Capital expenditures of $511.0 million and research and
development expenses of $279.3 million were made in global
expansion strategies during the year. Further, PACCAR expects
capital additions of $400-$500 million and research and
development expenses of $225-$275 million in 2013 as Kenworth,
Peterbilt and DAF design new products and services.
) with Zacks Rank #2 (Buy) is performing well in the industry
where PACCAR operates.
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