Stifel: Truck manufacturing orders brighter in December

The investment bank and analyst Stifel said orders for Class 8 trucks rebounded in December to “better-than-expected” levels after suffering from lackluster demand in October and November.    The investment bank and analyst Stifel said orders for Class 8 trucks, those commonly used for long-haul trucking companies, “rebounded” in December to “a better-than-expected” number, after suffering from lackluster orders placed in October and November.
   The industry ordered about 72,800 Class 8 trucks in October-December. This was a 45 percent drop from the autumn 2014 orders of about 132,900 units, but was just below the average 2010-2013 level of 75,800 units, Stifel said.
   “We view the rebound in orders as a reassuring signal that production should not fall off a cliff this year, and will likely still remain above or within the range of replacement demand levels despite the overbuild in 2015, but do not believe the orders indicate that the industry will soon be off to the races again like last year,” Stifel said in its truck equipment report.
   The bank’s transportation and logistics industry analysts said the truck manufacturing sector still faces “headwinds” as it enters this year, particularly for Class 8 truck orders. Stifel estimates the 2016 Class 8 truck production estimate will be 250,000 units, down 24 percent year over year.