Paccar Reports Lower 3Q Earnings; Boosts Dividend

Heavy-duty truck maker Paccar Inc. said Wednesday its third-quarter profit fell 25% on continued lower demand, but the company boosted its quarterly dividend.

Paccar’s net income fell to $302.3 million or 81 cents a share, from $403.6 million or $1.07 for the same period last year.

Sales and financial services revenue fell about 11% to $376 billion.

The company’s board approved the 8% dividend boost, to 18 cents, effective Dec. 5, for shareholders of record on Nov. 19.

“Industry retail sales are estimated to be 175,000 to 185,000 vehicles this year,” said Dan Sobic, a senior vice president at Paccar. “Sales are projected to improve in 2008 due to normal replacement demand and be in the range of 210,000 to 240,000 vehicles.

“Paccar’s year-to-date 2007 retail market share of the U.S. and Canadian Class 8 market has risen to a record 26.5% from 25.3% for 2006,” he said in a statement.

Paccar is the parent company of U.S. truck makers Kenworth Truck Co. and Peterbilt Motors Co. and Europe-based DAF Trucks.