Sector Glance: Heavy Trucks
Shares of companies that make heavy trucks rose Wednesday, pulled up by a strong overall market, along with new data showing an increase in truck orders.
According to data from ACT Research LLC, orders of Class 5 through heavy-duty Class 8 trucks rose 12 percent over November 2006 levels.
The November increase came after a 9 percent jump in October, which was preceded by a drop in the three previous months, according to the data included in an analyst note from Wachovia’s Andrew Casey.
Casey said the sustained strength in orders showed that truck market weakness may have bottomed, which is a relative positive for the companies in the sector, he said.
Also on Wednesday, Paccar Inc. announced a special dividend of $1 per share and a regular dividend of 18 cents per share.
The company said it would increase production at its DAF Trucks subsidiary by 5 percent in the first quarter in light of the strong Western and Central European truck market.
