PACCAR beats first-quarter profit estimates on truck demand

(Reuters) – U.S. truckmaker PACCAR Inc (NASDAQ:) beat first-quarter profit estimates on Tuesday, on the back of robust demand from its trucks and parts segments, benefiting an uptick in infrastructure spend.

PACCAR, which builds Kenworth, Peterbilt and DAF trucks, expects industry retail sales in the U.S. and Canada for its Class 8 trucks, to be between 250,000 and 290,000 in 2024.

“North American truck demand is benefiting from increased infrastructure spending,” said Mike Dozier, PACCAR’s executive vice president.

The company said it was also investing in production capacity and developing next-generation powertrains and connected systems, which are expected to drive aftermarket parts growth.

The Bellevue, Washington-based company reported a adjusted profit of $2.25 per share for the quarter ended March 31, above LSEG estimates of $2.17.

Net sales and revenue for the first quarter was $8.74 billion, above analysts’ average expectation of $8.24 billion.