PACCAR's quarterly profit falls on lower demand for trucks, higher costs

Jan 27 (Reuters) - PACCAR PCAR.O reported a fall in fourth-quarter revenue and profit on Tuesday, as lower demand for new trucks and higher production costs eroded margins.

Shares of the maker of Kenworth, Peterbilt and DAF trucks were down 1.4%.

U.S. truck operators have been deferring new purchases due to high interest rates and a sluggish freight market.

PACCAR reported 32,900 truck deliveries in the fourth quarter, down from 43,900 a year earlier.

The company has also been managing higher production costs even as it invests to expand its line-up of zero-emission vehicles.

Apart from making light-, medium- and heavy-duty commercial trucks, PACCAR also offers aftermarket parts and financial services.

PACCAR's revenue from the parts segment came in at $1.74 billion during the fourth quarter, compared with $1.67 billion a year ago, lifted by higher demand for aftermarket parts from operators holding on to their older trucks.

Net income slipped to $556.9 million, or $1.06 per share, for the fourth quarter, compared with $872 million, or $1.66 per share, a year earlier.

Analysts had expected earnings of $1.06 per share, according to data compiled by LSEG.

Quarterly revenue came in at $6.82 billion, below $7.91 billion a year ago. Analysts had expected revenue of $6.26 billion.