* Posts Q2 EPS of $0.65, below $0.69 Wall Street forecast
* Profit margins lower than expected
* Lowers forecast for heavy truck sales
* Shares fall 10 percent
(Updates stock action, adds analyst comment)
BOSTON, July 26 U.S. heavy truck maker Paccar
Inc (PCAR.O) missed Wall Street's profit forecast on Tuesday,
sending its shares down 10 percent, their biggest drop since
The company, which makes trucks under the Peterbilt,
Kenworth and DAF names, also lowered its forecast for overall
tractor trailer demand this year, citing the uncertain
The company said profit more than doubled to $239.7
million, or 65 cents per share, compared with prior-year
earnings of $99.6 million, or 27 cents per share.
Analysts, on average, had expected profit of 69 cents per
share, excluding one-time items, according to Thomson Reuters
Revenue rose 61 percent to $3.96 billion.
"I don't think the profit margins are where people expected
them to be," Robert W. Baird & Co analyst David Leiker said.
The Bellevue, Washington-based company expects makers will
sell between 180,000 and 200,000 Class 8 trucks -- the heaviest
vehicles including tractor-trailers -- in the United States and
Canada this year. That is down from its April forecast, which
predicted sales of 200,000 to 220,000 such trucks, which would
have been the industry's best year since 2006.
"We have lowered the range due to the uneven economic
recovery and supplier capacity constraints, especially tires
and chassis components," said Dan Sobic, an executive vice
president with the company.
Paccar shares fell $4.90 to $45.50 on the Nasdaq, briefly
touching $44.25, their lowest point since September.
(Reporting by Scott Malone, editing by Gerald E. McCormick and