Seattle securities firm McAdams Wright Ragen Inc. Nov. 11 raised its fourth-quarter earnings outlook for Bellevue, WA-based PACCAR Inc. after it discovered during a plant tour the company has a supply of truck engines made prior to Oct. 1, the Puget Sound Business Journal reports.
Commercial trucks with engines made after Oct. 1 are required to meet new, tougher emission standards.
The firm said it expects PACCAR to report earnings of 56 cents per share, rather than the 43 cents per share previously forecast, because any manufacturer with a supply of older engines can use them in trucks currently being manufactured.
The older engines are preferred by trucking companies because they are more efficient, and their maintenance records are known, said Jamélah Leddy, a McAdams Wright Ragen analyst.