* New York - The bullish case for this key supplier
-- In the most recent weekly survey conducted by the American Association of Individual Investors, investor sentiment is at a multi-year low... A bullish outlook might seem out of touch, especially coming from an economically sensitive industry like truck manufacturing. But I certainly wouldn't characterize management at commercial truck maker Paccar, Inc., as out of touch. In fact, they are very bullish... The nation's second-largest producer of heavy-duty trucks (mainly the class 8 "big rigs" it sells under the well-known Kenworth and Peterbilt brands) has seen a robust rebound in sales trends in recent years. Sales approached $19 billion in 2014, more than double the recession low of $8 billion and an all-time company record... Paccar is off to strong start this year. They also raised their full-year estimate for industrywide class 8 truck sales in the United States and Canada to 260,000-to-290,000 units, versus an earlier projection for unit sales of 250,000-to-280,000. That compares to roughly 250,000 heavy-duty trucks sold in North America last year... This means Paccar should continue to shine in North America, where revenue from truck sales soared 34% in Q1 (compared to the year-ago quarter) after jumping 26% in 2014. North America is by far Paccar's largest truck market, contributing nearly two-thirds of the truck segment's revenue... Within a few years, segment revenue may approach $5 billion annually... Paccar's management is justified in its bullishness. Since the dollar seems to have hit a ceiling, the highly successful North American business should continue to overshadow any currency-associated difficulties in foreign markets. This should allow Paccar to compound earnings by about 12% annually during the next few years, as Wall Street projects. The outlook could brighten further if the greenback gives up some ground...
New York, NY, USA - NASDAQ, by StreetAuthority - May 12, 2015
* Pennsylvania - T-Line, successor to Diamond T, plans return to market
-- T-Line Trucks & Chassis, a low-volume business that evolved from the old Diamond T and Diamond Reo operations, plans a return to production later this year. Its principals promise quality and simplicity through sound design, methodical assembly and use of hard-wired electrical circuitry. The company, Diamond Specialty Vehicles LLC, hopes to begin producing Class 6, 7 and 8 trucks and tractors, mostly for vocational use... Glider kits and complete "made to order" trucks, using a proprietary aluminum cab, are described on the company’s website. Powertrain offerings include Cummins diesels and Power Systems International gasoline and alternative-fuel engines, along with Eaton and Tremac manual transmissions, Allison automatics, and Dana Spicer and Meritor axles... Gliders and complete vehicles might be assembled by a contract manufacturer, but the partners prefer to set up their own facility, hopefully around Hershey, Pa., where the company is headquartered. Production of fiberglass hoods will be farmed out... Loyal Osterlund, a Diamond Reo dealer in Harrisburg, Pa., soon obtained tooling and rights to build and sell the trucks. His company averaged about 150 trucks per year, until 1995...
(Photo: Diamond Specialty Vehicles LLC - T-Line’s aluminum cab, built by a body maker in Wisconsin, can be altered for specialty applications) -- Hershey, Pa, USA - Trucking Info, by Tom Berg -May 13, 2015Labels: truckmakers news USA
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