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CHICAGO, Jan 29 (Reuters) - Paccar Inc (PCAR.O), the No. 2 U.S. maker of heavy trucks, said on Tuesday that its quarterly earnings fell a greater-than-expected 31 percent, pulled down by weakness in North America and a big jump in research and development spending.
The news sent the company’s shares down 5 percent in early trading.
Paccar reported a fourth-quarter profit of $261.1 million, or 71 cents a share, down from $380.5 million, or $1.01 a share, last year.
Revenue of the Bellevue, Washington-based company fell 11 percent to $3.76 billion.
Paccar blamed the slide on several factors, including a weak truck market in the United States and Canada, where tough new clean-air rules that took effect in 2007 and increased the price of engines and trucks — coupled with a weaker freight market — have kept fleet owners out of showrooms.
The company also said that higher commodity prices, and higher expenses associated with long-term strategic projects, also weighed on its results.
Peter Nesvold, an analyst at Bear Stearns, said a good chunk of the latter costs was driven by a doubling of quarterly R&D to $92.1 million in the latest quarter, up from $44.4 million last year.
Paccar shares were down $2.41 at $45.76 on Nasdaq. (Reporting by James B. Kelleher, editing by Dave Zimmerman)