If in two months the company follows through on the warning,workforce at the Bellevue-based company's Kenworth plant in Rentoncould be cut by 40%. More than 500 workers have already been laidoff there this year. Competing truck makers Freightliner andNavistar International also have had to lay off workers.

Last year, Paccar broke records with $583 million in profit.This year it should only hit $450 million. Paccar's stock closedFriday at $40.81, close to its 52-wek low of $36.25 than its52-week high of $54.25. In morning trading Monday, shares are upmore than $1.30 to $42.125/share.

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