Wednesday, February 2, 2011

Paccar's 4Q Profit Surges; Company Warns Of Rising Costs

"Paccar Inc.'s (PCAR) fourth-quarter profit more than tripled, but the commercial truck maker warned that rising expenses for materials and complying with tougher U.S. regulations on diesel-engine exhaust are squeezing the company's profit.

Paccar, the maker of Kenworth and Peterbilt trucks, has a reputation for being one most efficient operators in the truck industry. But the Washington company acknowledged that it is experiencing higher costs for steel, aluminum and copper that are pressuring its margins. Moreover, Paccar said filtering components for lowering nitrogen oxide levels in diesel-engine emissions have added $15,000 to the cost of a new heavy-duty truck."


--The Wall Street Journal