(Reuters) - PACCAR Inc (NASDAQ:PCAR) beat estimates for fourth-quarter profit and revenue estimates on Tuesday, on sustained demand for its fuel-efficient truck models.
Shares of the U.S. truck maker were up 1.5% in premarket trading.
The company, which makes trucks under the Kenworth, Peterbilt and DAF brand names, saw a growing demand for its hydrogen fuel cell and battery-powered vehicles as more consumers shifted to electric vehicles and emission-free engines.
PACCAR's order book remains strong as demand for industrial equipment in the U.S. has gotten a boost from the Biden administration's $1.2 trillion push to improve transportation and infrastructure.
Cummins (NYSE:CMI), Daimler (OTC:MBGAF) and PACCAR announced their joint venture last year to ramp up advanced battery cell manufacturing in the U.S. Under the partnership, the 21-gigawatt-hour factory in Mississippi is expected to start production in 2027.
PACCAR expects industry retail sales in the U.S. and Canada for its heavy-duty Class 8 trucks to be in a range of 260,000 to 300,000 trucks in 2024.
"Infrastructure spending and the replacement of older trucks are driving demand for Kenworth and Peterbilt trucks," said PACCAR's executive vice president Darrin Siver.
The Bellevue, Washington-based company reported a profit of $2.70 per share for the quarter ended December 31, beating LSEG estimates of $2.22 per share.
The company's quarterly revenue was $9.08 billion, compared with analysts' average estimate of $8.35 billion, according to LSEG data.