Jan 28(Reuters) - U.S. truckmaker PACCAR PCAR.O reported a fall in its fourth-quarter sales and profit on Tuesday as a sluggish freight market recovery and elevated production costs pressured its margins, sending its shares down as much as 4% in premarket trading.

The machinery industry has been grappling with a glut of equipment supply amid slower demand, although analysts expect trucking to be the first to strike a balance.

PACCAR has also been battling high production costs as it expands its offering to powertrains and emissions-free vehicles.

It delivered 185,300 vehicles worldwide at the end of 2024, compared to 204,200 deliveries the previous year.

The company, which makes trucks under the Kenworth, Peterbilt and DAF brands, expects industry retail sales in the United States and Canada for its Class 8 trucks, which are used to move heavy freight, to be in the range of 250,000 to 280,000 units in 2025, compared to 268,000 trucks the previous year.

"Infrastructure spending is driving steady demand for Kenworth and Peterbilt's industry-leading vocational trucks," PACCAR's Senior Vice President Laura Bloch said in a statement.

The company's expanding portfolio has driven up its capital spending, which is expected to be between $700 and $800 million in 2025, compared to $796 million in 2024.

Bellevue, Washington-based PACCAR reported a profit of $1.66 per share for the quarter ended Dec. 31, down from $2.70 per share in the year-ago period.

It logged total revenue of $7.91 billion in the reported quarter, compared to $9.08 billion in the fourth quarter of 2023.

(Reporting by Raechel Thankam Job; Editing by Pooja Desai)

((RaechelThankam.Job@thomsonreuters.com;))