Paccar projected fewer industry-wide truck sales in Canada and the U.S. for 2024 than the company initially expected, per earnings guidance.
The truckmaker revised its annual forecast as part of a Q2 earnings release, shifting its estimated range to 240,000 to 280,000 trucks, a 20,000-unit reduction compared to its January forecast of 260,000 to 300,000.
The OEM previously shrank its estimated annual total in May to 250,000 to 290,000 units. Those revisions are all down from 2023’s total of 297,000 units.
The follow-up revision came as Paccar H1 retail sales in the heavy-duty market were about 85% of what the business made during that same period a year ago.
Paccar indicated that the vocational and LTL markets remain strong for the company. “But I think our customers in the truckload sector are still seeing spot rates at low levels and contract rates at low levels,” CEO Preston Feight said on an earnings call.
Nevertheless, Paccar is committed to a long-term strategy and is not being deterred by a challenging outlook for a particular quarter, Feight said.
Like trucks, trailers are also taking a hit this year, a development that could continue throughout 2024.