Class 8 Orders Fall Below 14,000 in October

[kscarbel2]

Transport Topics  /  November 3, 2016

Orders for Class 8 trucks in October reached 13,900, according to analyst’s initial findings, which will be revised if necessary later in the month.

The volume reflects a familiar a story — lingering overcapacity from too many Class 8 tractors being purchased relative to freight availability last year and into early 2016.

One analyst called the orders weak.

“Considering that October is a month when big fleets start placing orders, the number is very disappointing. To put that in perspective, the 13,900 order number compares to expectations that were in the 18,000 range,” Credit Suisse analyst Jamie Cook wrote in a note to investors.

October's total was down from 19,500 in the same month last year and flat with September's 13,880 total.

The research company FTR pegged preliminary Class 8 net orders for October at 13,800 units.

The number for the month was negatively impacted by a significant cleanup of long-term, excess, orders by one OEM, it said.

With this backlog adjustment factored out, FTR said net orders would have been closer to approximately 21,300 units, much above industry expectations and would have been the best monthly order activity since December 2015.

[kscarbel2]

Early Class 8 Order Numbers Flat for the Month

Heavy Duty Trucking  /  November 3, 2016

Class 8 truck orders are projected to be essentially flat in October when compared to September, according to preliminary numbers from analysts.

Market analyst FTR is projecting net orders of 13,800 units for the month, similar to Sept. but subdued in what is usually a stronger order month. The reported net order number was negatively impacted by a significant cleanup of long-term excess orders by on OEM.

With the backlog factored in, net orders would have been closer to 21,300 units. That would have made for the best monthly order activity since Dec. 2015.

“The adjusted number of 21,300 was fueled by the big fleets placing their requirement orders for the first half of 2017,” said one analyst. “This indicates the freight markets are stabilizing and the fleets are confident enough to replace older trucks.”

Medium-duty Class 5-7 are projected to be 18,400 units for the month, down 10% from Sept. and 18% compared to Oct. 2015.

“That result was somewhat below our expectations, though not drastically out of line with our expectation that Class 5-7 production will be down slightly in 2017,” said another analyst.