(Reuters) - PACCAR Inc (NASDAQ:PCAR) beat third-quarter profit estimates on Tuesday, on robust demand for newer fuel-efficient truck models.
An increasingly environmentally conscious consumer base has benefited PACCAR's investment in hydrogen and battery-electric engines.
"Customers are replacing older vehicles with the new fuel-efficient Kenworth and Peterbilt trucks," said Mike Dozier, PACCAR's executive vice president.
The company, which designs and manufactures trucks under the brands Kenworth, Peterbilt and DAF, expects industry 2023 sales for Class 8 trucks in the U.S. and Canada to be in a range of 295,000-315,000.
Class 8 trucks typically refer to those that have a gross vehicle weight of more than 33,000 pounds and are used to move heavy freight.
Demand for industrial equipment has been improving as the United States upgrades roads, railways and other transportation infrastructure under Biden Administration's $1 trillion package that was approved by the Senate and signed into law in 2021.
"Infrastructure spending in the U.S. has been good for Kenworth and Peterbilt's truck business," Dozier added.
The U.S. truckmaker reported a profit of $2.34 per share for the quarter ended March, compared with analysts' average estimate of $2.12 per share, according to LSEG data.
It reported net sales and revenues of $8.70 billion compared to LSEG estimates of $8.01 billion.